HomeMy WebLinkAboutLetter #46 Cory Phillips
Butler, Bric
From:Cory Phillips <cory@thehomeaesthetic.com>
Sent:Monday, August 5, 2024 5:09 PM
To:Butler, Bric
Subject:Carmel Housing Task Force Members
Follow Up Flag:Follow up
Flag Status:Flagged
Housing Taskforce Members,
Thank you for taking the time away from your daily responsibilities to think through such an important
topic for our city.
I'm a resident of West Carmel, and I'm trying to provide a balanced approach. We do need to continue to
develop and evolve as a city, and the downtown has turned into a thriving urban core. However, as the
city progresses, we must account for a few things.
First, we must recognize centrifugal forces when development and density exceed the established
infrastructure. Congestion, pollution, and crime rates continue to be the strongest forces that push
people from an urban core. Many of those are what have brought Indianapolis residents to Carmel. As
our downtown begins to go vertical, are we paying attention to mitigating these factors?
Second, we discussed trying to solve the missing middle. I agree that the number of single-family homes
available in Carmel under $500,000 is dwindling. However, I don't foresee an easy way to solve this. A
few people pointed out that we will lose future businesses because there aren't affordable
homes. However, we can't control the price of homes. Ricardo's Law of Rents shows that the price of
land is high because the value people place on it is high. Building more homes, smaller homes, or even
high-density condo buildings will not lower the cost of owning a home here. As long as people view
Carmel as one of the most desirable places to live in the area, there will be a premium on living here.
Additionally, adding more apartments will not solve the missing middle problem either. While there has
been a small shift in the number of people willing to rent, most prefer home ownership. The statistics
favoring apartment development cited by major companies like John Burns, are coming from companies
that make money helping apartment developers. That is worth paying attention to the source of the data
we're citing.
Lastly, we must look at the market cycle when considering whether more apartments are necessary. We
were told that Occupancy rates are 95%, so we're basically full. However, a single occupancy rate does
not paint an accurate picture. To understand occupancy rates and market cycles, you must compare the
long-term average and see if occupancy rates are rising or falling. Our occupancy rates have fallen nearly
a full percentage point over the last year. Continued oversupply in the market could push the multifamily
sector into a recession.
I don't have a solution for you. I don't expect you to have one, either. I just ask that as we grow as a city,
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you progress carefully and thoughtfully and that you respect the wishes of the residents who have
invested so much into their homes and neighborhoods.
Thank you for your time,
Cory
Cory Phillips | Owner & Photographer
Work published in Architectural Digest, People Magazine, The New York Times, Washington Post,
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