Southern Indiana is working with developers to construct housing near employers to attempt to combat the lack of affordable housing options, which is an issue seen across the state and the nation. According to the State of the Nation’s Housing 2023 research, unaffordability and house shortages are at a record high and are contributing to the nation’s housing problem. Photo from Google.

News Release

INDIANA — Southern Indiana is working with developers to construct housing near employers to attempt to combat the lack of affordable housing options, which is an issue seen across the state and the nation.

A Princeton apartment complex, The District, is expected to be finished in 2024.

While some companies construct new housing options, other companies have opted to buy built houses to sell to their employees. Cook Medical Inc., a Bloomington-based company, has invested in 300 houses across southern Indiana to sell to employees.

According to the State of the Nation’s Housing 2023 research, unaffordability and house shortages are at a record high and are contributing to the nation’s housing problem. According to Harvard University’s Joint Center for Housing Studies report, the cost of houses skyrocketed in 2022, with housing costs reaching their highest price points in years. In the same year, home supply was at a record low.

Families across the state are feeling the burn of housing prices. Low-income renters, however, are the most affected by the crisis. According to a report by the National Low Income Housing Coalition in collaboration with Prosperity Indiana, there is a shortage of over 120,000 affordable and available rentals.

This housing gap means low-income individual and families have to compete for the affordable leftovers in their price range after higher earners take their first pick.

According to a needs assessment, conducted by Bowen National Research, there is a demand in Evansville for over 2,800 rentals and 3,000 for-sale units over the next half decade. The need was split between low-income and moderate/high-income families and individuals.

There are at least two housing projects in the works near major Evansville employers. One development, The Forge on Main, has been completed and opened in 2022.

The $28 million project was financed by House Investments of Indianapolis. The city contributed a $1.5 million and a 10-year property tax phase-in. The Forge on Main is located on north Main Street and west Franklin Street, near CenterPoint Energy, Berry Global and Deaconess Midtown Hospital. The complex provides 180 apartments and a Dollar General market.

Evansville is working on providing another 150 apartments with the resurrection of Karges Lofts. The construction is possible through tax credits, a $3.7 million Indiana Regional Economic Acceleration and Development Initiative grant and tax increment financing. The project is projected to cost $37 million and will give a former furniture factory a new life. To live at Karges Lofts, renters must be under 100% of the area median income.

18 apartments are expected to be ready to rend in October at The District in Princeton. The $21 million project is being funded by a READI grant of $2.5 million and public funds. The District will have 144 units and is on track to be finished by mid-2024. There are no income requirements for The District.

In Owen County, in 2022, Cook Medical Inc. purchased over 60 acres on Texas Pike to develop 100 lots. So far, 12 homes have been sold and another 12 will be developed this fall. Prices range from $188,000 to $212,000. READI funds are being utilized to place water infrastructure.

Cook Medical Inc. employees are able to have first dibs and enter a lottery on these houses. If they acquire one of the houses, they must live in it for three years. If they want to sell their home before the three years is up then Cook Medical Inc. can repurchase the house at its original price. After crossing the three-year finish line, homeowners then can sell their homes at market price.

Cook Medical Inc. also invested in the Abydel Pike project in West Baden, Orange County. The project will produce about 75 houses. The first few houses were sold at $155,000 and the following were sold with prices between $165,000 and $185,000. Requirements are similar to those of Texas Pike, with the exception that the general public can buy select homes. Infrastructure is currently being built for future homes.

Cook Medical Inc. is working on French Lick’s Klondike development. Construction on 25 houses are on schedule to begin this fall. House price ranges in the Klondike development range between $155,000 and $185,000 with similar purchase requirements to Texas Pike. READI payments are funding roadways, sidewalks, drinking water and waste infrastructure.

Cook Medical Inc. is not the only company attempting to create affordable housing for their employees. In May, Holiday World cut ribbon on a new apartment complex, Compass Commons. The $7 million project was funded by the amusement park. Compass Commons has the capacity to house 136 employees. During the summer, over 120 employees from ten different countries utilized the complex.