Carmel joins Fishers in latest move to limit rental properties

A cap on home rentals is coming to another city in Hamilton County. Carmel is the latest municipality to adopt restrictions on the number of single family homes that can be rented in a neighborhood.

The move will cap rentals by 10% and create a registry of owners. Property owners will need to apply for a permit with the city.

Fishers implemented a similar ordinance earlier this year.

The measures are a response to the growth of out-of-state investors buying up housing stock to use as rentals. The unanimous vote came after councilors pointed to a history of investors snapping up property and then not managing rentals well.

Carmel Councilwoman Anita Joshi said some neighborhoods have been hit harder than others. In some communities, the number of rental properties already tops the new cap.

"It’s actually not going to solve the problem for them immediately. Now, that doesn’t mean that we don’t need to do something,” Joshi said, “but I want people to understand that this is not a quick fix."

Rental cap supporters say they help protect the integrity of neighborhoods.

Some against the proposals have expressed concern they will exclude people who want to live in specific neighborhoods but are unable to purchase. 

Local realtor association MIBOR released a statement following the move. It expressed concern about unintended consequences and considered it a step backward in housing policy. 

"Decades of research clearly show that increasing housing inventory—not restricting rental opportunities—is the most effective way to address issues of housing access and attainability," the statement read.

When Fishers adopted its policy, Mayor Scott Fadness said leaders were responding to what community members wanted.

"We’ve heard time and time again from people who live there and spent their life savings, want to ensure that that neighborhood keeps its integrity and its vibrancy for the long term," Fadness said.