Rising housing prices across Indiana present challenges that affect both new and long-time residents, but by addressing specific issues, we can work toward solutions. By promoting policies that support achievable housing—affordable homes designed to cater to various income levels—we can help ensure Indiana remains a place where everyone can establish roots.
Issue: Insufficient Housing Options for the Missing Middle
The Indiana housing market has a shortage of “middle housing”—a range of home types between single-family residences and large apartment complexes, including duplexes, small apartments, and accessory dwelling units (ADUs). These options are essential for meeting diverse needs, yet many areas still lack them. Some Indiana cities, like South Bend, have tackled this by removing parking minimums to encourage middle housing construction. Expanding similar initiatives statewide could help close this gap and make housing more accessible to a broader range of income levels, thereby helping to end the missing middle phenomenon.
Issue: Limited Funding for New Residential Developments
Securing adequate funding for residential developments is essential to expand housing access. Recently, bills like SB300 and HB1157 have aimed to address this by allowing local governments to create tax increment financing (TIF) districts specifically for housing, according to Indiana General Assembly. By capturing property tax growth in these areas, funds can be reinvested in housing projects without adding a tax burden on residents. This type of funding is crucial for Indiana’s goal of increasing achievable housing inventory, and expanding these TIF programs could have a significant impact on meeting housing demand.
Issue: Regulatory Costs Adding Home Prices
According to CNBC, regulatory costs account for about 24% of a single-family home’s price and 41% of a multifamily unit. While regulations serve important roles, they can also drive up the cost of new homes. Streamlining regulations—without compromising safety or quality—could lower these costs for developers and, ultimately, consumers. Legislation like South Bend’s parking reforms shows that adjusting regulations can make new housing more affordable, and similar regulatory reviews statewide could reduce costs, helping the Indiana housing market better meet the needs of its communities.
Issue: Lack of Advocacy for Achievable Housing
The push for balanced, achievable housing requires active support from Indiana residents. Recent legislative changes, like HB1120’s restriction on rezoning in certain TIF areas, show that advocacy remains crucial. This bill limits redevelopment flexibility, making it harder to convert commercial spaces to residential use. By supporting policies that promote housing diversity and contacting local representatives, residents can influence Indiana’s housing landscape in favor of achievable housing for all.
How You Can Help
Everyone can contribute to improving Indiana’s housing market. A quick email, phone call, or note to local representatives expressing support for affordable housing initiatives can make a significant impact. By backing organizations like Build Indiana Roots, which advocates balanced housing policies, residents can join forces with a community that’s committed to keeping Indiana an affordable place to live.
With a combined effort, the Indiana housing market’s future can be both affordable and inclusive, ensuring everyone has the opportunity to thrive. Join us in the fight for achievable housing.