Indiana is leading the Midwest in new home construction, but prices remain too high for most Hoosiers.
Indiana Builders Association CEO Rick Wajda says the median price of a new home is pushing half a million dollars. “Eighty-three percent of Hoosier households cannot afford the median new home price in the state, and so we know we’ve got to do more,” Wajda said during a breakfast with state legislators hosted by the Home Builders Association of St. Joseph Valley on Wednesday.
Senator Linda Rogers (R-Granger) said legislation letting builders hire private inspectors should ease the homebuilding process. “In many communities, people were waiting and waiting for the permit process, so that alone is going to help reduce costs,” Rogers said.
Lawmakers also highlighted tax incentives, including residential TIFs and a revolving loan fund for housing infrastructure.
Senator David Niezgodski (D-South Bend) pointed to projects like the redevelopment of the former Drewry's Brewery and Elwood Shopping Plaza in South Bend. “The future, as I see it, is going to just be magnificent because I believe we’re not going to recognize this place in anywhere from 10, 15, 20 years.”
South Bend is also looking at implementing an “innovation development district.” Unlike a traditional TIF district, which only captures incremental growth in property tax revenue, an innovation development district also captures growth in sales and income tax revenues, through an agreement with the Indiana Economic Development Corporation.
South Bend Mayor James Mueller said the city has been trying to reduce regulatory costs at the local level, but changes at the federal level are causing challenges. “The idea of putting a tariff on Canadian lumber, for example – that raises the cost of new home construction,” Mueller told reporters after Wednesday’s event.
He said the private sector alone isn’t able to provide housing that everyone can afford, and the government is needed to help narrow the gap.
