Indiana has a housing shortage. Lawmakers are hoping a new bill could help

A bill to deregulate zoning in an effort to reduce the cost of building new housing options had its first hearing on Tuesday. 

The measure has been identified by Republican leadership as a priority and aims to increase Indiana’s housing stock.

Bill sponsor Doug Miller (R-Elkhart) said the move works on multiple levels to reduce the cost of housing. 

“We need to address the supply shortage, reform zoning, and invest in housing at all income levels,” he said. 

The bill allows accessory dwelling units on properties, permits religious institutions to build affordable housing, and prohibits a number of design requirements that could add to construction costs. 

Miller suggested that Indiana was short some 50,000 units for Hoosier homebuyers. In 2023, Zillow reported a 15,000-unit housing deficit in the Indianapolis metro area alone. 

Indiana isn’t the only place facing a housing shortage. Across the country, the lack of housing has grown to roughly 4.7 million units. 

Many states and local governments have turned to zoning changes as a way to reduce the cost of building new homes. The Pew Charitable Trust analyzed zoning changes and their impact on housing costs and put together a “blueprint for housing affordability.”

That blueprint includes some of the changes in Miller’s legislation, including limiting parking requirements for different kinds of housing. 

Local units of government will be able to opt out of some of the bill's provisions. 

Miller said the goal is to expand housing stock by reducing red tape for builders - something that can add to the final cost of a home. 

“For every thousand dollars that a home increases in price in the State of Indiana, 2,292 of our friends and neighbors are priced out of the market,” he said.

Testimony on the bill is expected next week.

Contact Government Reporter Benjamin Thorp at bthorp@wfyi.org