Increasing housing costs are stifling the growth of communities across Indiana. When new households are unable to put down roots, the community struggles to thrive. Build Indiana Roots (BIR) is devoted to achievable housing and advocates for responsible, balanced housing policies so all residents can achieve their home-buying dreams. We need to accelerate this process, so our “middle housing” options are there to support our majority.
Understand The Indiana Housing Market Trends
Home prices in Indiana are up 42% since 2020, but with both rates and borrowing costs skyrocketing, prospective homeowners now need to earn 80% more to comfortably afford a home, according to Yahoo! Finance. This leaves many aspiring homeowners out of the running, as median incomes have only risen 23% over the past four years. If you look at the average rate on a 30-year loan in March of 2020, it was 3.5%. As of mid-July 2024, the average rate on the same loan is hovering around 7%. So, prospective homeowners are forced to pay substantially more for the same home and must absorb a much higher interest rate as well. We need to work together now to change the Indiana Housing Market Trends.
Promote Achievable Housing in Indiana
Probuilder.com recently quoted, “In a recent meeting, a client questioned why so many industries can find ways to create more affordable solutions, but the housing industry can’t. Most people can’t afford a Tesla, but there are attainable alternatives such as the Nissan Leaf or the Hyundai Kona. The new iPhone costs nearly $800, but a good quality smartphone is accessible for around $200. Why not housing? We don’t have the answer yet, but I believe it starts by rethinking the starter home.”
BIR is focused on the “missing middle” in the housing market. We educate the community and lawmakers about the need for achievable housing and why the lack of it is a significant issue. We advocate for homebuyers, communities, and builders to lawmakers, emphasizing the need for responsible building and housing policies.
Change the Mindset Now
Real estate speculators and NIMBY (Not in My Backyard) attitudes significantly impact the housing inventory. As Earth911.com points out, “Real estate speculators acquire housing units to make a profit. These buyers tend to have deeper pockets and can generally outbid aspiring homeowners with fewer resources.” Additionally, “Housing inventory won’t increase when people are against construction. The “yes in my backyard” movement counters the prevailing NIMBY attitudes of the few but influential wealthy property owners. They lobby against the addition of more local housing units for selfish reasons.”
BIR advocating for achievable housing and promotes responsible building solutions and regulations that are backed by market research, balancing the need for regulation with the needs of the community. By protecting homebuyers from being priced out due to aesthetic-only regulations, we work towards a more inclusive housing market. We’re also helping to address the myths and misconceptions about achievable housing.
Focus on a Bright Future for Indiana Housing
Despite the challenges, the future of achievable housing in Indiana holds promise. By continuing to advocate for balanced policies and educating the public and lawmakers, we can foster a more inclusive and thriving community. Home prices in Indiana can stabilize, and more households can achieve their home-buying dreams.
To learn more about what you can do to help, explore the Build Indiana Roots website and join us in advocating for achievable housing in Indiana. Together, we can make a difference.