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“What can Indiana policymakers do to solve the housing shortage?”
Indiana’s housing shortage has become a growing concern. With rising demand and limited supply, now is the time for policymakers at the state and local levels to help ensure the availability of attainable housing for all Hoosiers.
“Indiana is a shining star in the Midwest as we routinely outperform our neighboring states on economic development, population growth and housing starts. But we need to do more. We need more housing at every price point, especially the entry-level market,” said Rick Wajda, Indiana Builders Association CEO.
We’ve seen the demand for new homes grow significantly over recent years, but the supply simply hasn’t kept pace. This gap between demand and supply is putting immense pressure on both buyers and builders. It’s essential that we address these barriers to ensure safe and affordable housing for all.
Key steps for policymakers
1. Streamline zoning and permitting processes. Several suburban cities are experiencing rapid growth but face delays in housing development due to outdated zoning laws and lengthy permitting processes. Modernizing zoning regulations and speeding up permitting will allow developers to meet the demand for housing while maintaining safety and quality.
2. Invest in infrastructure for expanding areas. Communities that are experiencing significant growth in economic development and population lack essential infrastructure such as roads and utilities. Policymakers should prioritize infrastructure investment to help reduce delays and construction costs, ensuring new housing developments
can progress smoothly and affordably.
3. Foster public-private partnerships . Addressing the housing shortage requires collaboration among developers, local governments and the private sector. Policymakers should create incentives for private developers to build affordable housing and partner with municipalities to allocate land for residential development, particularly in high-growth areas.
4. Re-evaluate rental cap policies . Some communities have implemented rental caps, which limit the number of rental units available in those communities. While aimed at stabilizing neighborhoods, such policies make it harder for working families to find affordable housing. Policymakers should consider alternatives to rental caps, such as zoning adjustments to allow for more multifamily housing options and single-family housing on smaller lots, which will help keep communities affordable for the next generation of Hoosiers who might want to live where they grew up.
The path forward
While the housing shortage presents significant challenges, it also presents an opportunity for Indiana to create long-term solutions that benefit all Hoosiers. By increasing incentives for development, modernizing zoning and building codes, investing in infrastructure, supporting affordable housing programs, and fostering collaboration, Indiana can be at the forefront and make significant strides toward solving the housing crisis.
As Indiana continues to grow and attract new businesses and residents, it is crucial that the state builds housing solutions that reflect this growth and meets the needs of all its residents.•
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Hancock is CEO of the Builders Association of Greater Indianapolis. Send comments to [email protected].
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You should read Ball State’s economist Hicks articles about the housing shortage in Indiana. Your solutions all seem like a hammer looking for a nail. Census records show Indiana has a quarter of million empty housing units right now and most cases it doesn’t make sense to build more new houses.
Interestingly, at Indy’s recent hosting of Global Entrepreneurship Conference (GEC), Tim Rowe, CEO and founder of Cambridge Innovation Center (CIC), which builds innovation centers across the world, delivered a session on “Becoming a Global Innovation City”. Mr. Rowe said “surprisingly, no city in the world has staked a claim as the innovation city for affordable housing”. Could Indianapolis becomes that city? If Indianapolis became a global innovation city by augmenting its bio-science innovation fame with an innovation center for affordable housing, such a center could include partnerships with not only developers, government, and private sector, as astutely mentioned by Mr. Hancock, but also with IU and Purdue academic talent (e.g., architecture, material science, engineering) to invent novel cost-effective construction methods and pilot test them on model homes built on a very large area of land.