HomeMy WebLinkAboutAbridged Central Indiana Housing StudyCENTRAL INDIANA
HOUSING STUDY
INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION
ABRIDGED
TITLE VI STATEMENT
The Indianapolis Metropolitan Planning Organization
(IMPO) values each individual’s civil rights and wishes to
provide equal opportunity and equitable service. As a
recipient of federal funds, the IMPO conforms to Title
VI of the Civil Rights Act of 1964 (Title VI) and all related
statutes, regulations, and directives, which provide
that no person shall be excluded from participation in,
denied benefits of, or subjected to discrimination under
any program or activity receiving federal financial
assistance from the IMPO on the grounds of race,
color, age, sex, sexual orientation, gender identity,
disability, national origin, religion, income status or
limited English proficiency. The IMPO further assures
every effort will be made to ensure nondiscrimination in
all of its programs and activities, regardless of whether
those programs and activities are federally funded.
For any and all inquiries regarding the application of
this accessibility statement and related policies, please
view the IMPO Title VI page, indympo.org/policies.
LANGUAGE ACCESS
If information is needed in another language, contact
317-327-5136. Si se necesita información en otro
idioma, comuníquese con 317-327-5136.
INDOT/FHWA
This plan was prepared in cooperation with the State
of Indiana, the Indiana Department of Transportation,
and the Federal Highway Administration. This financial
assistance notwithstanding, the contents of this
document do not necessarily reflect the official view or
policies of the funding agencies.
CONTENTS
4 Introduction and Overview of the Project
4 INTRODUCTION
4 ABOUT THE IMPO AND HOUSING STUDY PROCESS
4 Who is the IMPO and the Intent of the Study
5 Goals of the Study
5 Vision Statement
6 The Rising Cost of Housing: Where We Are, Housing Prices,
and A Growing Population
6 WHY INCREASING UNAFFORDABILITY
IS A PROBLEM FOR ALL
7 How We Arrived at Unaffordable Housing
7 CURRENT INVENTORY OF HOUSING
AND GAPS IN THE MARKET
9 CONTRIBUTING FACTORS: MARKET FORCES, PUBLIC POLICY, AND
PUBLIC OPINION
11 Solutions to the Housing Crisis – Toolkit and Next Steps
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 4
Introduction and
Overview of the Project
INTRODUCTION
Central Indiana has long had a reputation for housing
affordability, a characteristic that it proudly advertises
as one of the key components to a higher quality of
life relative to other markets in the United States. You
could pay a small fortune in mortgage or rent in other
areas – in many cases far exceeding spending the
typically recommended 30% of income on housing –
or you could live in Indiana, leaving behind the budget
crunch that those housing prices cause. Increasingly,
however, Central Indiana finds itself in a new reality.
While housing affordability for the lowest-income
groups has been a concern for decades, more
and more middle-income, and even high-income,
households are finding themselves struggling to keep
pace with rising housing prices.
Between 2020 and 2022, the median sales prices of
single-family homes increased an average of 31.6%
across all IMPO counties. Rent prices increased by
an average of 21.2% over that same time period.
Meanwhile wages rose by 8.8% on average. Official
numbers for 2023 haven’t been finalized, but housing
prices have continued to rise even as sales volume has
dropped.
Higher interest rates are often pointed to as the
primary driver behind the seemingly sudden crunch in
local housing affordability – a transitory phenomenon
that is entirely out of the hands of anyone other than
the Federal Reserve and is assumed will ease in time.
However, as this study will make clear, interest rates
are just an aggravating issue to a pre-existing problem
with a myriad of contributing factors.
The Central Indiana Housing Study (CIHS) provides a
current and comprehensive regional understanding of
housing. Multiple municipalities within the Indianapolis
Metropolitan Planning Organization’s (IMPO) planning
area have completed their own housing assessments,
and various public policy and housing organizations
have conducted studies looking at housing for certain
sectors of the population (e.g. low-income households)
or focusing on a smaller geographic scope (e.g. a
singular county). This housing study assesses housing
across all income groups, for renters and home-
buyers, across the 8-county Central Indiana region
(Marion County and the surrounding counties excluding
Madison County). It examines gaps in the markets,
identifies contributing factors, and provides a toolkit
of policy solutions that can be used as a starting point
to address identified issues.
The full CIHS is hundreds of pages long, with additional
statistics, supporting information and breakouts
of select information by county. Those who are
interested in that additional information can explore
the full document. This abridged version of the CIHS
is intended to act as a standalone document capable
of explaining key findings from the CIHS, including:
the issues residents are currently facing in the Central
Indiana housing market; the ramifications of these
issues; how past policy decisions affect the current
housing market; and tools that can be implemented to
address the issues.
ABOUT THE IMPO AND
HOUSING STUDY PROCESS
Who the IMPO is and the Intent of the Study
The Indianapolis Metropolitan Planning Organization
(IMPO) is a regional planning organization for
Central Indiana, covering approximately 1,500
square miles, 42 jurisdictions, and approximately
1.78 million residents. Originally founded to organize
transportation planning and distribute certain federal
funds, a 2018 strategic planning process identified
a need for a regional coordinating entity that went
beyond transportation. Since that time the IMPO has
expanded to other subject matter including economic
development, traffic safety, sustainability, and –
now – housing. Due to limitations on what type of
data is available at the census tract vs county level,
the Central Indiana Housing Study covers not only
its current planning area, but the entirety of the 8
counties it overlaps with. This also allows for seamless
updates far into the future as IMPO boundaries and
membership is updated.
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 5
The IMPO works through four core pillars to help our
members throughout the region:
1. Convene: Bring experts and community
members together
2. Inform: Provide reliable data to support
planning and policy-making
3. Plan: Create and adopt plans and
track their implementation
4. Fund: Fund regionally-significant
transportation projects
The CIHS is predominantly part of the “Inform” pillar and
recognizes that each city and town within the IMPO’s
boundaries possesses their own Comprehensive
Plan which guides their vision and development, and
a system of city planners, planning commissioners,
and other officials which ultimately make decisions
about development in their communities. The Central
Indiana Housing Study does not dictate what each
community should do regarding housing, but instead
seeks to provide information to aid in Central Indiana’s
continued growth and vibrancy.
The IMPO intends to continue work in the housing
sphere primarily through the Inform and Convene
pillars – that is, expanding on the information provided
74
65
70
65
74
70
69
465
NoblesvilleLebanon
Indianapolis
Greeneld
Shelbyville
Franklin
Martinsville
Danville
BOONE
SHELBY
MARION
MORGAN
HAMILTON
HENDRICKS
JOHNSON
HANCOCK
Legend
IMPO Urbanized
Area (UA), Adjusted,
2020 Census
IMPO Metropolitan
Planning Area (MPA),
2020 Census
FIGURE 1: MAP OF IMPO PLANNING AREA
in the CIHS, and bringing together stakeholders to work
on these issues collectively. Additional information on
this is provided in the “Solutions to the Housing Crisis”
section of this summary.
Vision Statement and Goals of the Study
These statements are informed by the CIHS’s
stakeholder engagement process, numerous stages
of research and analysis, and steering committee
feedback. The Vision Statement and Goals of the
study inform the housing toolkit and the IMPO’s work
moving forward in housing.
Vision Statement:
The Indianapolis Metropolitan Planning Organization
(IMPO) Central Indiana Housing Study seeks to foster
communication and support the development of a
more equitable, accessible, attainable, and connected
housing supply for current and future residents of the
Central Indiana region.
Goals:
1. Establish a shared understanding of the history
and current state of housing in Central Indiana.
2. Introduce a regional housing strategy that
connects communities and promotes equity.
3. Provide context and guidance for the public and
government leaders to inform public decision-
making on housing issues and policy.
4. Support collaboration and policy change at the
local and regional levels in promoting the vision.
5. Support the creation of the full continuum of
housing types and attainability across the region.
The Central Indiana Housing Study does
not dictate what each community should
do regarding housing, but instead seeks
to provide information to aid in Central
Indiana’s continued growth and vibrancy.
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 6
The Rising Cost of
Housing: Where We Are,
Housing Prices, and A
Growing Population
In the introduction of this study, it was noted that from
2020 - 2022 the median sales prices of single-family
homes increased an average of 31.6% across all IMPO
counties, rent prices an average of 21.2%, while wages
rose by 8.8% on average. The median sales price of
$228K in 2020 has increased by $72,000 in less than
three years to a median sales price of $300K. Interest
rates have also continued to rise contributing to the
increasing cost of buying a home with an average rate
of 7.5% as of September 2023. Given this housing price
($300K) and interest rate (7.5%):
• A person who puts a 20% down payment of
$60,000 will have a monthly house payment
of $1,866. They need a household income of
$89,550 to afford this home.
• A person who puts a 10% down payment of
$30,000 will have a monthly house payment
of $2,253. They need a household income of
$108,150 to afford this home.
• A person who puts a 5% down payment of
$15,000 will have a monthly house payment
of $2,368. They need a household income of
$113,659 to afford this home.
In contrast, the median household income in Central
Indiana today is $73,571. In effect the median
household cannot afford the median home even
when they’re able to save the recommended 20%
down payment. 24% of home-owners are cost-
burdened by housing – the household is paying more
than 25% of their income towards housing – while
61.7% of renters are cost-burdened. When looking at
the severity of those burdened we can see that 8.9%
of home-owners are severly burdened (spending over
45% of their income on housing), while 29.8% of renters
are severely burdened.
$400,000
$300,000
$200,000
$100,000
$0
1980 1990 2000 2010 2020
HO
M
E
P
R
I
C
E
QUARTER
FIGURE 2: CENTRAL INDIANA
HOME PRICES OVER TIME
TOTAL NOT COST BURDENED
TOTAL COST BURDENED
MODERATELY BURDENED (>25 - 45%)
SEVERELY BURDENED (>45%)
OCCUPATION
FIGURE 3: COST BURDENED
PERCENTAGES IN CENTRAL INDIANA
76.0%
24.0%
15.0%
8.9%
OWNER
38.3%
61.7%
32.0%
29.8%
RENTER
At the same time that residents in Central Indiana
are becoming increasingly strained by housing costs,
Central Indiana is continuing to grow. By 2033 an
estimated 111,000 households will be added to the
region as certain job industries are projected to
continue growing. Roughly 25% of this growth is
expected to come from people outside of the region
moving to Central Indiana.
WHY INCREASING UNAFFORDABILITY
IS A PROBLEM FOR ALL
Median incomes in Central Indiana can no longer
afford the median home, and professions that have
traditionally been considered middle-income are
falling behind as inflation rises. Many municipalities
emphasize attracting high-income jobs for various
reasons unrelated to housing affordability. However,
this does not insulate these communities from these
issues. The addition of any single job generates
demand for other goods and services that person
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 7
community entirely and locate elsewhere. If
relocating nearby it’s possible the individual
will continue to commute to their current
employment, however the likelihood of this
occurring decreases when similar positions are
located close-by in their new community.
Housing has been and continues to be both a workforce
development issue, as well as a quality-of-life issue
even for those who themselves are not struggling to
afford housing.
How We Arrived at
Unaffordable Housing
CURRENT INVENTORY OF HOUSING
AND GAPS IN THE MARKET
Housing is increasingly unaffordable in the Central
Indiana region but taking a closer look at housing
inventory provides additional detail on our housing
market. One of the deliverables for the CIHS is the
Housing Gap Analysis – this report compares current
housing supply to current housing preferences
(meaning, not necessarily what a household currently
rents/owns, but what they would like to) to understand
what gaps currently exist in the market. Note that
just because housing is technically unaffordable for
a household doesn’t mean they won’t, or can’t, live
there. Some individuals may choose to forego certain
luxuries, or even necessities, in order to live in a given
For the purposes of this study we identify
housing as being “affordable” for a given
individual at 25% of their income because the
data only includes monthly rent or mortgage
and tax. Assuming an additional 5% should
be added to cover costs such as utilities and
insurance brings the effective cost ceiling
approximately to the 30% standard.
uses, and this is especially true for higher-income
earners, many of which expect a certain level of
amenities. For example, the creation of a new clinic
and the hiring of doctors (and other staff) to service
that clinic will also result in the need for more jobs in
industries these individuals will patronize such as coffee
shops, restaurants, child-care, teachers, mechanics,
electricians, etc. This is known as an employment
multiplier, and while these numbers vary by industry, a
2019 Economic Policy Institute Report estimated that
the multiplier for these “induced jobs” can vary from an
additional 1.07 for a food services worker to 4.5 for a
worker in the durable manufacturing sector. However,
in order to provide for these services, there needs to
be housing that’s affordable to those employees.
Rising housing unaffordability can manifest in a variety
of ways, such as:
• A local café or restaurant struggling to properly
staff because wages cannot keep pace with rising
housing costs, and they cannot attract and retain
workers. This can result in reduced operating
hours, reduced capacity, and at times business
closure.
• A company deciding not to locate in an area
because the cost of housing – and thus worker
salaries – is too high, relative to the advantages
provided.
• People moving out of a community. For some
the housing pressures and coinciding reduction
in quality of life will cause them to leave the
FIGURE 4: PROJECTED HOUSEHOLD
GROWTH IN CENTRAL INDIANA
LAST CENSUS YEAR
HOUSEHOLDS
+111,000
HOUSEHOLDS
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 8
community. Using this methodology we can see
that the market does not align with current housing
preferences.
Perhaps most notably the region does not have
enough smaller ownership units. In all counties and
region-wide, there are too few small ownership units
(up to 2 bedrooms) compared to what the population
would prefer. Small ownership units often, though not
always, come in the form of attached housing units
such as condos, townhomes, and duplexes. These
units can represent a more affordable homeownership
opportunity for first-time buyers, as well as provide
opportunities for downsizing empty nesters looking to
reduce maintenance burdens.
Another key finding is that there are too few affordable
units for those at lower income levels, especially at
smaller 1-and 2-bedroom sizes. In all counties and
regionwide, there is a pronounced shortage of units
affordable to lower-income households (especially
those with incomes below $35k). While the regional
gap is most pronounced for lowest-cost 1-bedroom
rental units, affordable ownership units are also in very
short supply.
In contrast the region has more mid-and higher-cost 3
and 4+ bedroom houses than people would prefer. In all
counties and regionwide, there are considerably more
owned houses at mid-and higher-cost levels than the
current population would demand if making their
housing decisions today. This suggests that given the
opportunity many would shift from an owned house to
either a smaller ownership unit (condo or townhome) or
a rental option, assuming their preference is available
in their community of choice. The one exception to this
pattern is houses at the highest cost range where it
seems the region could absorb more than it has.
These findings directly support a concept that has
been noted anecdotally by many: that we have
housing, and are predominantly continuing to build
housing, for one target market – a middle-income
earner who may rent for a few years, before marrying,
having children, and buying a middle-income 3-4
bedroom home which they will remain in for the rest
of their lives. While some households will fulfill this
arc, the married-parents-with-kids demographic is
becoming statistically less common and exponentially
more expensive. When housing is primarily built to
accommodate one idea of a household, it makes a
community inflexible and unable to support residents
as they progress through different stages of their life.
FIGURE 5: CURRENT HOUSING MARKET ALIGNMENT FOR CENTRAL INDIANA
RED indicate a shortage (darker shades indicate proportionally larger shortages).
GREEN indicate a surplus (darker shades indicate proportionally larger surpluses).
NOTE:
HOUSEHOLD INCOME MAXIMUM MONTHLY
HOUSING COST
RENT OWN
1BR 2BR 3BR 4BR+1BR 2BR 3BR 4BR+
LESS THAN $15,000 $313 -27637 -6416 -3452 -5048 -15515 -3525 -921 -1414
$15,000 - $24,999 $521 -10710 -3529 -1192 -5722 -12290 -5965 -871 -2143
$25,000 - $34,999 $729 -2896 -4591 -4208 -4565 -13315 -3357 2011 -2698
$35,000 - $49,999 $1,042 11379 20760 552.8 -6639 -16952 -241 20787 -2786
$50,000 - $74,999 $1,563 9865 47784 25198 -5522 -16871 -8364 78897 2478
$75,000 - $99,999 $2,083 -1438 10429 20327 2257 -9541 -17168 60763 26311
$100,000 - $149,999 $3,125 -2234 -1237 5431 545 -7231 -30497 31060 26607
$150,000 - $199,999 $4,167 -388 -893 -610 -415 -1106 -13672 4612 186
$200,000 OR MORE -1100 -995 -435 -452 -3005 -16581 -2599 -7842
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 9
A single person in their life-time may be a low-income
renter, a home-owner without and then with children,
an empty nester, and then a senior needing supportive
care. It also makes a community less able to adapt to
changing demographics. Households are decreasing
in size due to a variety of societal shifts including people
delaying or never marrying (creating single-person
households), as well as married couples deciding to not
have children - the amount of households with children
has dropped by 15% over 20 years.
In addition to the quality-of-life effects this has on any
given household, it also has implications on economic
development strategies as Central Indiana continues
to expand. Providing a diversity of products and price
points is important not only to current residents, but
those the region is hoping to attract in the future. The
housing production need forecast for the next five
years estimates that an additional 42,000 housing
units need to be produced over the next five years,
or roughly 8,400 per year. As a result, new housing
production is needed at most cost levels with a
considerable portion below market rate. While most
counties will see demand for market rate rental and
ownership housing continue, a substantial portion of
new demand may require some level of subsidy or
other support to deliver. The findings suggest modest
demand for mid-and higher-cost 3+ bedroom houses,
but given the current surplus of these units future
production could be offset by existing units becoming
available through market churn as misaligned
households move out of some of them in favor of
other types that better fit their preferences and ability
to pay.
CONTRIBUTING FACTORS:
MARKET FORCES, PUBLIC POLICY,
AND PUBLIC OPINION
The contributing factors behind these issues are a mix
of policy decisions and broader market forces, both
current and historic – there is no single item that is alone
responsible for the rise in housing unaffordability.
Market dynamics – that is broader economic trends
– are a category that is often referred to when
discussing housing unaffordability. Local officials and
the public have little control over market dynamics,
but their effects can be mitigated through supportive
policies. The impact of these economic trends can be
significant and are often unexpected which adds to
the hardship they present. This includes items such as:
• Changing construction costs which impact
housing attainability in a number of ways,
from new home pricing to production rates to
renovation costs. Recently, construction costs
have become very volatile, with supply chain
disruptions and material shortages across the
country. In parallel, the cost of labor has been
rising steadily over recent years. These dynamics
have driven up the cost of new home construction
which is passed onto buyers who happen to be in
the market at the time. It also drives up costs of
home repair and renovation projects, potentially
impacting household wealth especially among
lower-income and older households.
• Mortgage rates. As the chart illustrates, a 4-point
rate increase translates to a $155k reduction in
the home price a household can afford to pay.
High interest rates can also present a barrier for
first-time homebuyers, delaying when they can
purchase or forcing compromises on what and
where they buy. For homeowners who need to
refinance or take an equity loan, the rate at that
moment determines how much of their equity
These findings directly support a concept
that has been noted anecdotally by many:
that we have housing, and are predominantly
continuing to build housing, for one type of
person. When housing is primarily built to
accommodate one idea of a household it
makes a community inflexible and unable to
support residents as they progress through
different stages of their life. It also makes a
community less able to adapt to changing
demographics.
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 10
may erode in the process. While many in the
banking and housing sector expect interest rates
to decrease in 2024 and beyond, they are still
anticipated to stay significantly above rates seen
pre-pandemic.
• While housing represents perhaps a household’s
largest regular expense, other costs of living also
impact household finances and can compete
with housing when budgets are tight. While
some essential items do not experience much
price volatility (e.g. fruit and vegetables), others
may swing more dramatically (e.g. gasoline
and energy). Compounded by inflation, price
increases of essential items can put pressure on
a household’s ability to maintain their current histories and current market conditions. For example,
Marion County contains most of the region’s denser
neighborhoods, because many of them were
developed before personal automobiles either existed
or were widely adopted. For similar reasons we can
see pockets of density in historic downtowns in other
surrounding counties. There are also centers which
have developed more recently, such as in Hamilton
County, reflecting a currently increasing public interest
in walk and bike-friendly areas.
In contrast, many of the communities around
Indianapolis were built when the suburban single
unattached home on a large lot was considered
ideal, and public policy followed suit in supporting
their creation. As a result, today we have a historical
ownership housing stock of middle-income 3-4
bedroom homes. However, while a significant amount
of the current housing stock was developed decades
ago, new housing which municipalities can guide the
shape of continues to be developed today. While
there have been some shifts in the type of housing
being developed, conversations with a variety of
stakeholders throughout the process as well as the
Housing Gap Analysis makes it clear that the housing
market has not been able to adapt to these needs
entirely.
Central Indiana’s housing stock wasn’t built in a vacuum
but rather is supported by local public policy that has
been in turn informed by public opinion. Documents
such as land use plans provide a vision for the future
development of a community, while zoning and
development ordinances specify use, size, density, and
housing situation and could contribute to a risk
of displacement, especially if renting or facing
parallel challenges such as unemployment or
health problems.
• Corporate single-family home investors.
Across many parts of the region, investors and
corporations have acquired increasing numbers
of single-family houses, typically converting
them to rental units in the process. In some
communities, as much as 30% of the single-family
housing is corporate owned. The CIHS’s analysis
of corporate single-family home investors shows
that this type of investment negatively impacts
homeownership and dampens home values even
as it drives up rents.
While market dynamics play a significant role in
rising unaffordability, public policy and public opinion
have impacted housing development historically and
continue to do so today. Much of what exists in Central
Indiana today was either founded, or remained
relatively small, until the past three decades. While
Indianapolis continues to have the largest population
in the region, most of the region’s recent development
has focused outside Indianapolis’s core and, over time,
spread further into the surrounding suburbs.
The time period during which housing was developed
and the accompanying public preferences and
public policy that supported it impacts the style of
housing that was built. Consequently, the core and
surrounding counties have very different development
FIGURE 6: INTEREST RATES
AND PURCHASING POWER
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 11
height of structures. Design standards can also be used
to mandate certain architectural features ultimately
impacting the final produced product. These items can
have a positive impact in ensuring that a good quality
product is created as well as in providing a sense
of identity to a community - but it also can greatly
restrict the type of housing that’s available and make
housing more expensive in the process. For example,
requiring a large lot size for each home means that the
price of that house will be significantly higher. In other
situations certain types of housing such as duplexes,
quads, or townhomes may be entirely prevented from
being built due to various requirements.
These standards are created largely based on
feedback from the community in one form or another.
City staff may update plans and ordinances based on
what they hear from community members in public
meetings, or influence may come in other ways as
councilors or mayors press for changes based on
conversations with constituents. Even in situations
where a type of housing development is technically
allowed by local zoning laws, pushback from the
public can effectively end a project before it begins.
Concerns from the public may be justified, but can also
be based on unfounded fears, such as that the new
development will negatively affect their own property
values . For any single housing development project its
impact on the broader Central Indiana housing market
may be negligible, but cumulatively across the region
it can have a significant effect on the amount and type
of new housing that’s developed and its price.
Solutions to the
Housing Crisis – Toolkit
and Next Steps
Just as there is no single contributor to the rising cost
of housing, neither is there a single policy that will serve
as a solution. The Housing Toolkit provides specific
strategies organized around the vision and goals
established through the course of the project. The
strategies and recommendations have two targeted
user groups serving as the lead, the IMPO itself and
its member communities consisting of municipalities.
However, other entities such as developers, non-
profits, and other organizations operating in the
housing space also have a role to play.
In order to combat rising unaffordability the CIHS offers
the following goal to municipal staff and leadership:
1. Support the creation of the full continuum of
housing types and attainability across the region.
Each community within Central Indiana is ultimately in
control of which strategies, if any, they decide to employ
as they work towards achieving their local housing
goals. However, providing more housing in general is
necessary in order to alleviate rising unaffordability –
as supply rises, the upward pressure on housing prices
FIGURE 7: CHANGE IN NUMBER OF HOUSING UNITS OVER
TIME
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 12
will also ease. The housing production need forecast
completed for the CIHS estimates that an additional
42,000 housing units need to be produced over the next
five years, or roughly 8,400 per year. Additionally, a
greater variety of housing that meets the preferences
and price points of households needs to be produced.
Different strategies for increasing housing vary from
market-type incentives such as offering property tax
abatement for developers to updating public policy
documents such as local zoning to allow for a greater
amount and type of housing to be developed.
As communities investigate which options are best
suited to them, the IMPO will continue to provide
support and information to members. Strategies
serving the following goals are assigned to the IMPO:
1. Establish a shared understanding of the history
and current state of housing in Central Indiana.
2. Introduce a regional housing strategy that
connects communities and promotes equity.
3. Provide context and guidance for the public and
government leaders to inform public decision-
making on housing issues and policy.
4. Support collaboration and policy change at the
local and regional levels in promoting the vision.
These goals, and the specific strategies listed under
each, fall under the informational and convening work
the IMPO has historically provided as an organization.
By expanding on the information provided in the
CIHS and bringing together stakeholders to work on
these issues collectively, the IMPO hopes to continue
advancing housing issues.
GOAL STRATEGY DESCRIPTION TYPE SCALE TIMEFRAME COST LEADER IMPO ROLE NEXT STEP
ESTABLISH A SHARED
UNDERSTANDING OF THE
HISTORY AND CURRENT
STATE OF HOUSING IN
CENTRAL INDIANA
Maintain and update housing plan Update the housing plan document or produce periodic supplements reflecting the
latest data, toolkit strategies, and technical assistance resource offerings.Communication Regional Ongoing Low MPO Plan and
inform Refresh analyses every 2-4 years
Maintain online dashboard Establish and regularly update an online dashboard featuring indicators and
findings from the housing plan and the data behind it.Communication Regional Ongoing Low MPO Inform Build out initial dashboard website.
Commission follow-up studies Commission follow-up studies on critical housing issues that impact housing attainability
and access at local and regional levels.Communication Regional Ongoing Low MPO Inform Identify the next issue for a deeper dive study.
Provide regional context Provide regional context as resource for local planning through resource sharing and active
collaboration. Communication Regional Ongoing Low MPO Inform Distribute housing plan and findings to regional stakeholders.
INTRODUCE A REGIONAL
HOUSING STRATEGY THAT
CONNECTS COMMUNITIES
AND PROMOTES EQUITY
Set housing goals Work with municipalities to set housing production targets at regional and county
levels that reflect this plan’s vision and goals.Communication Regional Ongoing Low MPO Plan Distribute housing plan and findings to regional stakeholders.
EDUCATE THE PUBLIC AND
GOVERNMENT LEADERS TO
INFORM PUBLIC DECISION-
MAKING ON HOUSING
ISSUES AND POLICY.
Housing element in comprehensive
plans
Recommend municipalities include a housing element in comprehensive plans and
updates.Regulation Any Long-term Low MPO or
state Plan Communicate the benefits of expanded housing consideration in
comprehensive plans and encourage municipalities to include them.
Enhance policymaker awareness of
housing issues
Enhance awareness of housing challenges and opportunities with ongoing
communication and information sharing, such as regularly providing meetings,
whitepapers, networking opportunities, etc.
Communication Any Ongoing Low Any Convene Develop a communications plan to increase contact and information-
sharing with policymakers at local and state levels.
SUPPORT COLLABORATION
AND POLICY CHANGE
AT THE LOCAL AND
REGIONALLEVELS IN
PROMOTING THE VISION.
Provide technical assistance Support municipalities with technical assistance and resources to help them
overcome challenges and capture opportunites to promote housing attainability.Communication Regional Ongoing Low to
moderate MPO Inform Develop and distribute a “menu” of technical assistance resources and
make regular contact with member communities.
Organize stakeholder summits Organize collaboration summits with local stakeholders and municipalities to
catalyze organizational partnerships and resources-sharing.Communication Regional Ongoing Low MPO Convene Organize a pilot summit at the county or regional scale.
Network local and regional
stakeholders
Provide leadership in connecting local and regional stakeholders to create a more
robust and networked housing ecosystem of partnerships and collaboration.Communication Regional Ongoing Low MPO Convene Compile a contact list of the region’s stakeholders and reach out to those
not already in regular contact with IMPO.
SUPPORT THE
CREATION OF THE
FULL CONTINUUM
OF HOUSING TYPES
AND ATTAINABILITY
ACROSS THE REGION.
Property tax abatement for
developers Offering property tax abatement or exemptions for affordable housing developments.Financing Municipal Mid-term Moderate Municipality Plan Interview local developers and stakeholders to assess current
financing gaps.
Dedicate public land for housing Dedicating publicly owned land that is suitable and appropriately sited for new housing Regulation Municipal Short-term Moderate Municipality Plan Inventory underutilized publicly owned land and assess suitability for
housing.
Housing bond funds Establishing bond funds to help finance affordable housing Financing Municipal Mid-term High Municipality Plan Interview local developers and stakeholders to assess current
financing gaps.
Tax Increment Financing Enabling Tax Increment Financing (TIF) for new housing development Financing Municipal Mid-term Moderate Municipality Plan Interview local developers and stakeholders to assess current
financing gaps.
Home repair program Establishing a program to support home maintenance and energy efficiency
upgrades for income-qualified households Financing Any Short-term Low to High Municipality Plan Identify potential partners and develop a small pilot to test local
receptivity and administrative capacity to implement.
Home accessibility retrofits Establishing a program to support aging-in-place with accessibility retrofits and
other light modifications Financing Any Short-term Low to High Municipality Plan Identify potential partners and develop a small pilot to test local
receptivity and administrative capacity to implement.
Property tax abatement for
residents
Providing property tax relief for income-qualified homeowners to mitigate cost
burden and prevent displacement Financing Municipal Short-term Moderate Municipality Plan Assess the relationship between property tax increases and risk of
displacement within communities.
Foreclosure prevention program Establishing a program to provide education, technical assistance, and financing
options that help financially struggling homeowners avoid foreclosure.Regulation Municipal Short-term Moderate Municipality Plan Identify potential partners and develop a small pilot to test local
receptivity and administrative capacity to implement.
Enabling ADUs by right in zoning Modifing local zoning to allow Accessory Dwelling Units (ADUs) by right Regulation Municipal Mid-term Low Municipality Plan Determine potential attainability benefits of ADUs and which zones
they might be most suitable.
Tenant notification requirement Requiring landlords to provide 90-day notices to tenants when property changes
hands, especially if lease terms are likely to change.Regulation Municipal
or state Short-term Low Municipal or
state Plan Interview local residents and advocacy groups to articulate the
problem and calibrate a potential requirement.
Community land trusts Establishing community land trusts that incorporate attainable housing development Community Municipal Long-term High Non-profit Plan Identify potential partners and suitable locations within the
community.
Land banks Establishing land banks that reserve property for attainable housing development Community Any Mid-term High Municipality Plan Identify neighborhoods that would benefit most and candidate
properties for a first round of acquisition.
Payment in lieu of taxes (PILOT)Allowing payment in lieu of taxes (PILOT) to help finance affordable and mixed-
income housing development.Financing Municipal Mid-term Moderate to
high Municipality Plan Interview local developers and stakeholders to assess current
financing gaps.
Zoning for new housing development Update zoning to accommodate new housing development in appropriate
locations. Regulation Municipal Ongoing Low Municipality Inform Assess existing zoning ordinances to determine if they meet today’s
community needs and marketing demand.
Design standards updates Updating architectural design standards that reduce built-in housing costs.Regulation Municipal Ongoing Low Municipality Inform Review existing standards documents with builders and realtors to
understand cost implications.
Rental registration and licensing Establish a rental registration and licensing ordinance/program to ensure greater
transparency and accountability in the market. Regulation Municipal Mid-term Moderate Municipality Inform Research best practices, and determine what resources and data
collection is necessary in order to establish.
HOUSING TOOLKIT
ABRIDGED CENTRAL INDIANA HOUSING STUDY INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION 13
INDIANAPOLIS METROPOLITAN PLANNING ORGANIZATION
www.indympo.org