Letter #4 David Gagliano
Butler, Bric
From:bbutler@carmel.in.gov
To:Zoccola, Christine
Subject:RE: Carmel Housing Task Force Meeting
From: david gagliano <dave.a.gagliano@gmail.com>
Sent: Sunday, March 24, 2024 9:59 AM
To: Sue Finkam <sue@suefinkam.com>; Finkam, Sue <sfinkam@carmel.in.gov>; Zoccola, Christine
<czoccola@carmel.in.gov>
Subject: Carmel Housing Task Force Meeting
Good morning,
I hope you are having a nice weekend. (Sue) I’m hoping I have Christine’s correct email but if not, would
you please forward this to her.
I attended the entire meeting last week Thursday morning. The meeting was informative and had some
good nuggets of information. Yes, home prices have increased considerably in the last few years along
with everything else we purchase and consume. That’s putting a strain on families in Carmel, the
northern suburbs, Indianapolis and the nation as a whole. But - as you’ll see below, an email I just
receive from Zillow confirms what I said to Christine after the meeting (i.e., if people around here are
griping about affordability, try going to any major market and the US and ask them how they feel). You’ll
see Indianapolis is the 13th MOST AFFORDABLE CITY in the nation — ahead of hundreds of other cities!
This leads me to ask a question for the Committee’s consideration. What should our strategic focus and
goal be for Carmel in terms of Housing? At the end of the day, we must recognize we can’t be all things
to all people. It was a said that we don’t have a demand issue in Carmel — we have a supply issue (and
one that won’t begin fixing itself until interest rates come way down). Many residents think we are
currently focused on the wrong areas for Carmel which is the genesis of so much remonstration.
Carmel seems to currently be under an Acquisition Strategy — primarily getting younger residents to
move to Carmel and making it more affordable to attract service staff to live closer to where they
work. Products are primarily 5-6 story apartments which has led to the call for change. Respectfully, I
think we need to focus our attention towards a Retention Strategy — keeping long-term Carmel residents
in Carmel. These are the people that helped build Carmel and make it what it is today. They are the
residents who want to stay in Carmel but they, like their homes, are getting older, their families are grown
and they desire time for other interests Focusing available LARGE parcels of land towards products for
them that allow these residents to move to the downtown Carmel Corridor / Monon Trail will pay
dividends for years to come. Today’s long-terms residents are staying in their older homes primarily due
to two reasons — little to no available inventory (even at a higher price per square foot than they have
today) and high mortgage interest rates that could essentially double a mortgage payment from whee
they are today at 2.5 - 3.5% versus 7%+. These are people that will take care of their homes and be
respectful of the area and fellow residents.
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I hope that the Committee can finalize our stragegy and be deliberate in implementing it. Carmel has
historically been viewed as a Bedroom Community — a model that seems to be followed by our
neighbors in Westfield, Zionsville, Noblesville and Fishers. All five cities share on thing in common that
we should leverage together — we all win when businesses choose to locate to the area as any larger
company with hundreds of employees will not have all of their employees locate to the HQ location —
they’ll relocate to the general area (in this case the Northside).
Thanks for your time and desire to make Carmel even more special for years to come!
Dave
David Gagliano
317-372-9277
Below is Zillow’s Most Affordable Cities Listing….
Finding a home that fits your needs while leaving money in your pocket to enjoy life can feel like
an impossible journey at times. But real estate markets vary widely, and there are still markets
where homes are considered affordable. If buying a home is a priority for you and you have
flexibility on where to live, you might want to consider one of these local markets.
The cities on Zillow’s list of most affordable places to live all have one thing in common: The cost
of housing consumes less than 30% of a typical household’s budget — in some cases, a lot less.
The rankings are based on a Zillow® analysis of metros across the country that takes into
account the value of a typical home along with the median household income. Also considered is
the monthly mortgage payment needed to buy a typical home if the buyer pays current interest
rates and puts 20% down toward the purchase.
These factors combined produce a “mortgage-to-income ratio” — the share of your income that
goes toward housing costs. Paying roughly a third of your income toward housing is generally
considered affordable as it tends to mean that you have money left for other necessities, to pay
down debt and save for the future.
The most affordable places to live
1. Pittsburgh, PA
Three rivers form the heart of this waterfront city, which boasts 446 bridges — more than
Venice, Italy.
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Typical home value: $202,454
Share of monthly income needed to pay the typical mortgage: 19%
Typical monthly mortgage payment: $1,053
Years to save for 20% down payment: 5.3
2. Jackson, MS
Nicknamed "The City With Soul,” this capital city is steeped in history and delivers big on
southern hospitality.
Typical home value: $185,338
Share of monthly income needed to pay the typical mortgage: 22%
Typical monthly mortgage payment; $964
Years to save for 20% down payment: 5.7
3. Syracuse, NY
A regional hub for education and entertainment, this city in central New York is expected to
benefit from the construction of a mega-complex of computer chip plants in its northern
suburbs.
Typical home value: $212,404
Share of monthly income needed to pay the typical mortgage: 23%
Typical monthly mortgage payment: $1,105
Years to save for 20% down payment: 5.8
4. Toledo, OH
Known for eclectic architectural styles and its long history as a center of glass manufacturing,
Toledo is full of surprises, including an 8,600 square-foot aquaponics farm in the heart of
downtown.
Typical home value: $176,787
Share of monthly income needed to pay the typical mortgage: 24%
Typical monthly mortgage payment: $920
Years to save for 20% down payment: 5.6
5. Wichita, KS
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Despite its size, Wichita is one of the least congested cities in the U.S., with average one-way
commute times of about 19 minutes.
Typical home value: $201,780
Share of monthly income needed to pay the typical mortgage: 24%
Typical monthly mortgage payment: $1,050
Years to save for 20% down payment: 5.7
6. Akron, OH
Akron is home to several higher education institutions, including the University of Akron and
Kent State University, which infuse the city with youthful energy.
Typical home value: $207,190
Share of monthly income needed to pay the typical mortgage: 24%
Typical monthly mortgage payment: $1,078
Years to save for 20% down payment: 5.8
7. St. Louis, MO
Known as “The Gateway to the West,” St. Louis’ rich history as a frontier town is reflected in its
diverse architecture, historic neighborhoods and landmarks.
Typical home value: $242,214
Share of monthly income needed to pay the typical mortgage: 25%
Typical monthly mortgage payment: $1,260
Years to save for 20% down payment: 6
8. Augusta, GA
Georgia’s second oldest city, known worldwide for an annual golf tournament, sits along the
Savannah River, with easy access to outdoor recreation.
Typical home value: $224,839
Share of monthly income needed to pay the typical mortgage: 25%
Typical monthly mortgage payment: $1,170
Years to save for 20% down payment: 6.4
9. Rochester, NY
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This city in western New York has gone through many iterations, and while industries have come
and gone, the city has maintained a rich arts scene and hosts several cultural festivals each year.
Typical home value: $233,753
Share of monthly income needed to pay the typical mortgage: 25%
Typical monthly mortgage payment: $1,216
Years to save for 20% down payment: 6.2
10. Detroit, MI
This riverfront city, which sits along the Canadian border, embraces diversity and continues to
remake itself and its downtown core.
Typical home value: $240,536
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,251
Years to save for 20% down payment: 6.2
11. Birmingham, AL
The city, which played a significant role in the U.S. civil rights struggle of the 1960s, boasts a rich
cultural scene and renowned medical and health care institutions.
Typical home value: $247,702
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,289
Years to save for 20% down payment: 6.7
12. Baton Rouge, LA
Home to Louisiana State University, Baton Rouge’s rich cultural heritage is influenced by French,
Spanish, African, and Creole traditions that live on in its music, food and festivals.
Typical home value: $228,418
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,188
Years to save for 20% down payment: 6.5
13. Indianapolis, IN
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Home to one of the oldest auto racing circuits in the U.S., this waterfront city landed a spot as
one of the most affordable U.S. cities on Zillow’s list of the hottest housing markets for 2024.
Typical home value: $270,026
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,405
Years to save for 20% down payment: 6.6
14. Little Rock, AR
This capital city won a place on Zillow’s list of the best cities for first-time buyers in 2023.
Typical home value: $212,713
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,107
Years to save for 20% down payment: 6.5
15. Des Moines, IA
A study in contrasts, Des Moines hosts one of the largest and oldest state fairs in America and
serves as a major center for insurance and financial services.
Typical home value: $270,827
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,409
Years to save for 20% down payment: 6.1
16. Columbia, SC
A typical home in this capital city, located in the middle of the state, goes from listing to pending
in about 17 days.
Typical home value: $243,161
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,265
Years to save for 20% down payment: 7
17. Cleveland, OH
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Known for attractions like the Rock & Roll Hall of Fame and a theater district that is second in
size only to New York City.
Typical home value: $215,913
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,123
Years to save for 20% down payment: 6.1
18. Buffalo, NY
Known for epic snowstorms and its proximity to Niagara Falls, Buffalo topped the list of Zillow’s
hottest markets for 2024.
Typical home value: $244,825
Share of monthly income needed to pay the typical mortgage: 26%
Typical monthly mortgage payment: $1,274
Years to save for 20% down payment: 6.5
19. Grand Rapids, MI
Located on the Grand River, Grand Rapids is known for its breweries and relatively low cost of
living.
Typical home value: $309,531
Share of monthly income needed to pay the typical mortgage: 27%
Typical monthly mortgage payment: $1,610
Years to save for 20% down payment: 7.3
20. Memphis, TN
Known as the official home of the blues, Memphis is home to Elvis Presley’s mansion, Graceland,
one of the most visited homes in the U.S.
Typical home value: $234,635
Share of monthly income needed to pay the typical mortgage: 27%
Typical monthly mortgage payment: $1,221
Years to save for 20% down payment: 7
21. Oklahoma City, OK
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The energy industry fuels the economy here, but cowboy culture is still alive and well.
Typical home value: $229,529
Share of monthly income needed to pay the typical mortgage: 27%
Typical monthly mortgage payment: $1,194
Years to save for 20% down payment: 6.4
22. Louisville, KY
Louisville boasts skyscrapers and the largest historic preservation district featuring Victorian
architecture in the U.S.
Typical home value: $247,856
Share of monthly income needed to pay the typical mortgage: 28%
Typical monthly mortgage payment: $1,290
Years to save for 20% down payment: 6.9
23. Harrisburg, PA
Located on the east bank of the Susquehanna River, this capital city serves as the metropolitan
center for about 400 communities.
Typical home value: $274,217
Share of monthly income needed to pay the typical mortgage: 28%
Typical monthly mortgage payment: $1,427
Years to save for 20% down payment: 6.9
24. Cincinnati, OH
Located in a river valley, Cincinnati came in second on Zillow’s list of hottest markets for 2024.
Typical home value: $271,766
Share of monthly income needed to pay the typical mortgage: 28%
Typical monthly mortgage payment: $1,414
Years to save for 20% down payment: 6.9
25. Tulsa, OK
This spirited city is known for its classic and original Art Deco architecture and arts scene.
Typical home value: $227,703
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Share of monthly income needed to pay the typical mortgage: 28%
Typical monthly mortgage payment: $1,185
Years to save for 20% down payment: 6.7
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