Bridging the housing gap: Addressing the need for missing middle housing in Carmel
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Carmel has solidified its reputation as one of America’s most sought-after cities, consistently drawing families and professionals alike with its vibrant lifestyle, excellent schools, and thriving community. However, as the city flourishes, it faces a growing challenge: how to provide diverse and affordable housing options that meet the needs of both current and future residents.
This year, the city of Carmel launched the Carmel Housing Task Force, a group of local leaders, experts, and residents focused on assessing the community’s housing needs to guide future housing strategies. In September, the group released its initial recommendations. A key finding was the pressing need for “missing middle housing” in Carmel, which includes smaller home types such as townhomes and duplexes that are similar in scale to single-family homes, rather than large apartment buildings. While Carmel has an abundance of apartments and high-end homes, there is a notable lack of smaller home ownership opportunities for buyers. With housing costs rising faster than purchasing power, many residents are being priced out of the market or not finding a home that fits their lifestyle.
Carmel’s desirability as a zip code is well-known, consistently ranking as among one of the country’s best places to live. The need for new housing options is further intensified by a trend of Hoosiers moving to the donut suburbs surrounding Indianapolis. A recent Indiana University report highlighted that Hamilton County experienced the largest one-year increase in population, with over 6,000 residents relocating to the north side of Indianapolis in 2023. But what factors are driving this shift from the city to the suburbs?
Factors driving suburban migration trends
Several factors contribute to this migration trend – many families are drawn to the suburban lifestyle for its parks and recreational amenities, access to quality schools such as the prestigious Carmel Clay School District, and greater sense of community. The appeal of larger homes and outdoor spaces also plays a significant role, especially for those seeking a more balanced work-life dynamic. An increase in remote work options has allowed people to prioritize their living environments, enabling them to choose homes that better suit their needs without the constraints of commuting to city jobs.
It’s no surprise that Carmel has been a hot spot, with its ample restaurants, shopping and entertainment and vibrant downtown and Midtown areas. As a result, Carmel is experiencing an influx of new residents, further highlighting the urgent need for diverse housing options that accommodate different lifestyles and budgets.
Indy-based developers such as Onyx+East are addressing the need for missing middle housing by investing in Carmel through new projects, including the upcoming community, Flora. This $61 million development in West Carmel will be Onyx+East’s largest to date, featuring 121 homes on 17 acres, consisting of townhomes, duet homes, and single-family homes with three to four bedrooms. Prices for these homes will start in the mid-$400,000s, providing Hoosiers with the opportunity to own homes in the desirable Carmel area at more accessible price points.
Bringing urban living to suburbia
While many home seekers are eager to move to the suburbs, they often want to retain the low-maintenance lifestyle, convenience, and modern features that characterize downtown Indianapolis homes. For these individuals, townhomes and duplexes represent an ideal solution, combining the benefits of smaller properties with the vibrant outdoor green spaces that suburban living provides. These housing options offer a perfect balance, allowing residents to enjoy a sense of community and proximity to entertainment destinations, parks and recreational areas while still experiencing the ease of upkeep that comes with less expansive homes.
Many modern townhomes and duplexes are designed with contemporary finishes and energy-efficient features, appealing to buyers who value both style and sustainability. As the demand for such housing grows, developers are increasingly focusing on creating these hybrid living spaces that cater to the evolving preferences of home seekers. The urbanization of the suburbs benefits both residents and their communities by cultivating a more dynamic atmosphere where residents can thrive while maintaining the charm and green spaces that suburban life offers.
Addressing challenges of affordability and density in Carmel
Affordability is a significant concern in Carmel, where the median home sale price reached $584,000 in February 2024, with many homes selling quickly – often within just seven days. High costs for land, construction, and development make it challenging to create affordable new housing, with entry-level homes estimated to cost over $500,000. The limited availability of land and low inventory of single-family homes further complicate the situation. While higher-density options could address the housing shortage, residents are increasingly worried about the impact on greenspaces and natural areas, particularly regarding large apartment complexes. This makes missing middle housing, such as townhomes and duplexes, a viable solution.
As Carmel and other burgeoning Indianapolis suburbs continue to evolve, the collaborative efforts of government officials and local developers are crucial in shaping a future that meets the diverse needs of its residents. By prioritizing the development of missing middle housing, the city can not only attract new families and individuals but also ensure that current residents have access to affordable and desirable living options. This will help maintain Carmel’s reputation as a prime destination while fostering a more inclusive community. Ultimately, the focus on innovative housing solutions will enhance the quality of life for all residents, allowing them to enjoy the best of suburban living without sacrificing modern conveniences.
Kelli leads the strategic vision and growth efforts for Onyx+East, a full-service homebuilder executing development, construction, marketing, design and sales across the Midwest and Florida.