In La Porte County, we face an affordable housing crisis, partly due to a physical shortage of rental properties. This lack of rental homes drives up the price for those that are available, due to basic supply and demand principles. This limited housing stock is aging, and the need for building new and innovative housing is apparent. However, while housing solutions are innovating, the zoning of these homes has not, strictly limiting what can and cannot be built. Smart zoning reform is necessary, enabling us to construct smaller, more affordable homes and increase housing density in our communities.
The Numbers Don’t Add Up
Indiana’s 2024 housing wage, the hourly wage needed to afford a two-bedroom rental, rose to $22.07, while the average renter’s wage increased by only $0.06, reaching $17.92 per hour. This indicates that less than a third of Indiana’s top 20 largest occupations now pay wages sufficient to cover the housing wage. These facts do not take into account the lowest wage earners, who are often left out of this conversation entirely. Nor does it take into account those 30-50% of their average monthly income on housing. This group does not qualify for housing assistance in many cases, yet struggles to find safe, affordable, and stable housing as well.
Here in La Porte County, the situation is urgent. A recent housing study in La Porte showed a need for over 900 for-sale housing units and more than 750 rental housing units to meet demand in the coming years. Currently, there is a deficit in our housing stock for those who call this community home, and this issue is likely to persist as the industry continues to grow in the area. Workforce housing will remain a prevalent concern. The numbers in the study aren’t just statistics; they represent people in our community, teachers, nurses, retail workers, and service industry employees who keep our community running but can’t afford to live here.
The wage gap is significant. Home values in Indiana rose by about 48% from 2020 to 2024, while wages only went up by 23% in the same period. This imbalance between housing costs and incomes is making homeownership increasingly difficult for many families, which in turn directly impacts the rental markets in our state. When first-time home buyers cannot make that first step onto the property ladder, they have no choice but to remain in rental housing.
How Current Zoning Laws Perpetuate This Problem
You might wonder: if we need more housing, why aren’t we building it? The answer lies in our zoning laws, which determine what can be built and where in counties and cities across our state.
La Porte County’s zoning regulations (and our two largest cities, LaPorte and Michigan City), while intended to maintain community character, inadvertently creates barriers to affordable housing through several mechanisms, particularly the dominance of single-family zoning. Here’s what that means in practical terms:
Single-Family Zoning Dominance: Much of La Porte County is zoned exclusively for single-family homes on large lots. Research by The New York Times found that in many American cities, it is illegal on 75 percent of residential land to build anything other than a detached single-family home. This means we’ve essentially outlawed the very types of housing, such as duplexes, small apartment buildings, and townhomes, that used to provide affordable options for working families. These homes and zoning requirements were built for a nuclear family (parents and children); however, we know that families are shrinking in size.
Minimum Lot Size Requirements: Our current regulations often require large lot sizes, which drives up the cost of land per housing unit. Research has found that minimum lot size rules raise home prices by forcing buyers to purchase larger, more expensive parcels and by reducing the number of homes that can be built in a jurisdiction. When you mandate that each house must sit on a large lot, you’re guaranteeing that fewer homes can be built and that each one will be more expensive.
Limited Housing Types: Under current zoning, many of the housing types that once comprised the fabric of our communities, such as small homes, duplexes, townhomes, and apartments above shops, are now prohibited from being built in most residential areas in La Porte County.
Innovative Solutions: Legalizing Affordable Housing Types
The path forward isn’t complicated, but it does require political will. We need to update our zoning code to permit a wider range of housing types and greater flexibility. Here are the key reforms that can make a real difference:
Accessory Dwelling Units (ADUs)
Accessory Dwelling Units, also known as granny flats, in-law suites, or backyard cottages, are smaller, independent housing units located on the same property as a single-family home. ADUs can be converted portions of existing homes, additions to new or existing homes, or new stand-alone accessory structures.
The beauty of ADUs is their flexibility. They allow:
- Homeowners to generate rental income to help pay their mortgage.
- Seniors to age in place with a caregiver nearby and a community that they know.
- Young adults to find affordable housing close to family.
- Creation of housing without changing the neighborhood character.
California enacted state laws preventing localities from imposing barriers to ADU construction, leading to the permitting of 60,000 ADUs that provided homes for tens of thousands of people. We can learn from their success.
In La Porte County, we can make real changes in our affordable housing stock by updating zoning ordinances to permit accessory dwelling units in all residential zones, with reasonable regulations regarding size, design, and occupancy. Consider following Indianapolis’s example, where ADU regulations allow for units ranging from 220 to 800 square feet, providing homeowners with flexibility while ensuring these units remain smaller than the primary residence.
Missing Middle Housing
The “Missing middle” refers to housing types situated between single-family homes and large apartment complexes. This includes duplexes, triplexes, townhomes, and courtyard apartments—housing types that were once common but have mainly become “missing” from many neighborhoods due to zoning restrictions.
These housing types are critical because they:
- Cost less to build per unit than single-family homes
- Fit naturally into existing neighborhoods
- Provide ownership and rental options at various price points
- Support walkable, vibrant communities
Oregon’s House Bill 2001, adopted in 2019, requires the state’s medium-sized cities to allow duplexes on each lot zoned for residential use, while large cities must allow duplexes, triplexes, quadplexes, cottage clusters, and townhouses in residential areas. In Minneapolis, the city’s 2040 comprehensive plan revised existing zoning regulations to legalize duplexes and triplexes in residential districts and removed minimum parking requirements.
In La Porte County, if we designate more areas for multi-family housing, particularly near transportation corridors, employment centers, and existing services, this will have a massive impact in providing affordable housing stock in our community.
Reducing Minimum Lot Sizes
One of the most effective reforms is to reduce or eliminate minimum lot size requirements, allowing for more efficient land use and enabling the construction of more homes.
In Houston, policymakers reduced the minimum lot size from 5,000 square feet to 3,500 square feet in the urban core. The result was incredibly positive, resulting in over 34,000 new homes built on smaller lots, which provided more affordable options for families.
Research from the Mercatus Center and Housing Affordability Institute shows how urban minimum lot sizes and setbacks contribute to higher housing prices and urban sprawl, driving up land costs and reducing the supply of affordable homes.
We can mimic these positive results in La Porte County by reducing minimum lot size requirements in areas served by municipal water and sewer systems, allowing for more efficient land use while maintaining appropriate standards for rural areas.
The Benefits of Reform
These reforms aren’t just about building more housing; they’re about creating stronger, more inclusive communities. Here’s what we stand to gain by these simple yet impactful reforms:
Economic Growth: Housing that workers can afford is essential for attracting and retaining businesses and employees. When teachers, nurses, and service workers can’t afford to live in La Porte County, companies struggle to find employees.
Community Diversity: Missing middle housing addresses the needs of a diverse population, recognizing that individuals, couples, and families require varied housing options and that their housing needs evolve.
Environmental Sustainability: ADUs are generally smaller in size, located on already developed lots, and rely on existing infrastructure for utilities. They are also relatively easy to construct and more energy-efficient compared to a typical single-family home. Building more housing in existing neighborhoods reduces sprawl and protects farmland and natural areas.
The question isn’t whether we should reform our zoning laws. The question is: how many more of our neighbors will be forced out before we act?
