CARMEL — Carmel continues to grow, but the city faces a significant challenge: limited available land for new construction.
"It's rare to see much new construction at all because there's not much land left," said Nancy Mutchmore, a Carmel-based realtor.
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This scarcity is driving developers in Carmel and across Hamilton County to increasingly pass on single-family communities in favor of high-density housing like apartments and townhomes. According to the Builders Association of Greater Indianapolis, single-family home building permits were down roughly 16% through the first eleven months of 2025 compared to the same period in 2024.
Mutchmore believes this trend is problematic for the community.
"I would love to see some of these big parcels that they're choosing to build apartments on, that they would look at more affordable single-family homes that would create more of a neighborhood," Mutchmore said.
One current high-density project drawing attention is a newly proposed 27-unit townhome community along Illinois Street and 106th Street. The proposal has sparked disagreement among the Carmel Plan Commission, with one commissioner expressing concerns about the development's suitability for the location.
"This development seems it's being pushed into something not suited for this type of development," Commissioner Adam Campagna said at the committee's January 6th meeting.
While townhomes and apartments can provide convenience for Carmel newcomers like Elizabeth Surby, not all residents are embracing the high-density trend.
"We're close to Christkindlmarkt and grocery stores and drug stores, and so it's very convenient to be in an apartment," Surby said.
"I think it's too, too much density. I think I'd much rather see single-family homes," said Steve Minner. "That would be better for the community, I would think."
Mutchmore told WRTV Monday that incoming homebuyers are ultimately the ones who lose out in this market shift.
"It certainly has brought prices up in Carmel because there's just not as many options there," Mutchmore said.
A final vote for recommendation to the city council regarding rezoning for the Illinois Street townhome development is set to occur on January 20th. The Carmel Plan Commission committee voted not to make a recommendation one way or another at this time.
You can find more information related to the project by clicking the link here.
