INDIANAPOLIS — Thousands of residents in the state are struggling to afford safe housing, according to data from the National Low Income Housing Coalition. This situation may worsen if federal funding cuts impact housing programs nationally and locally.
Renae Berry has firsthand experience with the challenges of finding affordable housing.
"I started looking for affordable housing in August 2023; it took me until October 2024 to find a place and get settled," said Berry, who lives in a one-bedroom apartment with her teenage daughter.
Despite working 40 hours a week, she was unable to find an affordable two-bedroom unit.
"There is just so much of a gap between what people can afford and what people make in an hour. We shouldn't have to sacrifice medical care and be in survival mode just to have a place over our heads," she added.
The housing crisis is affecting not only low-income communities.
Andrew Bradley from Prosperity Indiana noted that 47% of all renters are "housing cost-burdened," meaning they spend more than 30% of their income on housing.
"Some places won't rent to you if you don't make three times the monthly rent," Bradley stated.
Non-profit organizations dedicated to addressing housing issues are concerned that the crisis may worsen due to impending federal funding cuts. The Fair Housing Center of Central Indiana has already begun to feel the effects.
"Grants that go to non-profit organizations like mine to fight housing discrimination were terminated. The notice didn't give a reason as to why the grants were terminated," Executive Director Amy Nelson remarked. "I've worked in fair housing since 1997 through several different administrations, and I have never seen this happen before."
The Fair Housing Center is already restricting programs due to financial limitations. While they support audits, Nelson expressed concern that the cuts could disproportionately impact the most vulnerable residents in Indiana.
"No analysis or evaluation as to what outcomes that program has achieved is just simply not the way to do that," she said.
Despite a 1.4% decrease in the housing gap over the past year, experts warn that if the trend continues, it would take 70 years to close the gap in affordable housing availability.
In central Indiana, the housing market remains competitive.
According to the MIBOR Realtor Association, which covers 17 counties, the median home sales price in January was $292,000. Homes were on the market for an average of 38 days, with a supply of 2.5 months of inventory available.
Additionally, the average rate on a 30-year mortgage rose this week, ending a seven-week decline.
Mortgage broker Freddie Mac reported a rate of 6.65%, up slightly from 6.63% the previous week but lower than 6.74% a year ago, indicating some improvement over the past year.
