Todd Huston: Regulations have driven up cost of homeownership

Featured Issue:
“Should state legislators pass a law that overrides local authority on some requirements for home construction in hopes of increasing housing stock to meet growing demand?”

The average age of a first-time homebuyer in the United States has risen to 40 years old. Since 2020, the median home price in Indiana has increased 42%. Young professionals and families are finding it increasingly difficult to put down roots, build equity and create the long-term financial stability that homeownership has provided for generations.

This is because we have constrained supply with unnecessary and problematic regulations and restrictions. According to multiple studies, government regulation accounts for anywhere from 20% to 40% of the cost for a new single-family home or rental unit. Those costs are constricting the market, inflating prices and putting the dream of homeownership out of reach for too many.

Addressing this concern has been a key focus this session. House Bill 1001 is aimed at limiting burdensome regulations that are driving up costs, including impact and development fees, complex and outdated building standards, and lengthy and unpredictable hearing and review processes. Regulations like these have made it incredibly difficult for new homes to be constructed at a price people can afford.

The goal is not to take away local input and control but rather to put common-sense guardrails in place to rebalance the scales and ensure Hoosiers aren’t priced out of the housing market.

This is important to Hoosiers working hard to earn a home, but it’s also critical to the success and growth of our state. It’s estimated that Indiana is facing a housing shortage of about 50,000 homes, with some estimates even higher. At the same time, our state is growing and attracting new residents every day.

Indiana is leading the Midwest, and much of the country, in economic and population growth. Our gross domestic product continues to outpace that of all neighboring states. Our communities are growing, companies are locating and expanding here, and people are choosing to live in Indiana. To embrace this growth, we must have housing to meet demand.

Expanding housing options will help communities position themselves for growth. Providing affordable housing options opens the door to young families, it supports workforce growth and drives increased enrollment in our schools — a problem that some school districts are currently facing due in part to a lack of affordable homes.

In the last few years, the state has made meaningful investments in housing. Through Indiana’s Residential Infrastructure Assistance Fund, we’ve provided $75 million to communities to ease the cost of adding housing units. We also passed House Enrolled Act 1005 last year to ensure the communities accessing this money would not create unnecessary regulations. Indiana’s READI program has also helped communities add housing and make other quality-of-life improvements.

House Bill 1001 is the next step to unleash the housing market, encourage the construction of new homes and provide more Hoosiers access to housing they can afford.

We will continue working closely with industry and local governments to strike the right balance. With practical, forward-looking policies in place, we can meet this moment head-on and ensure the promise of homeownership remains within reach for Hoosiers across our state.•

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House Speaker Todd Huston, R-Fishers, represents House District 37, which includes a portion of Hamilton County. Send comments to [email protected].

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