CARMEL, IN — Carmel and Fishers' new rental ordinance could limit housing options for renters who need them most, according to local real estate professionals who work with single-family rental properties.
The ordinance, which WRTV first reported on when it was originally proposed a couple of months ago, targets single-family rental properties in the city. It states that no more than 10% of homes in a subdivision can be eligible for rental.
Carmel is currently holding a registration process so that homes that are currently being rented, even if they exceed the 10% limit, can be grandfathered in.
City leaders in both communities have told WRTV the move was in response to a growing concern that large investment firms were buying homes around Carmel and Fishers.
Carmel City Council member Rich Taylor claimed in a meeting back in April that 9.6% of the total homes in Carmel are single-family rentals, and 22.8% of those are owned by large corporate investors.
Some real estate professionals feel the move could punish renters who want to move to the city.
"When you limit supply, prices are going to increase," said Jeremy Tallman from T&H Realty Services.
Shannon Kruege from Swan Realty Holdings said the ordinance will make it difficult for people who need to rent.
"I think it's going to make fewer opportunities for folks that can't afford to purchase to be able to rent," Kruege said.
Both Tallman and Kruege work with people on both sides of rental transactions.
Kruege said she loves helping people whom other rental agencies may have turned away from.
"I listen to when there's a single mom, and she has just gotten divorced, and on paper, she doesn't look like the perfect tenant from a financial standpoint, but we've had nothing but good luck with those folks," Kruege explained.
Both real estate professionals believe the ordinance won't affect their industry right away, but could make things harder on those needing to rent.
"When you squeeze the demand, and you only limit a certain amount of rentals, there's going to be naturally a higher demand for those rentals," Tallman said.
Kruege said she thinks some won't be able to call Carmel home due to the change.
"Carmel will be completely out of reach for them," Kruege said.
Both hope cities understand the value renters can provide.
"They might not be able to afford to purchase a home. But, you know, that doesn't mean that they shouldn't still have those opportunities," Kruege said.
Carmel is currently undergoing a registration program, so homes that are already being rented can be grandfathered in. More on the registration process is available on the City's Website.
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Griffin Gonzalez is the In Your Community multimedia journalist for Hamilton County. He joined WRTV in January of 2024. Griffin loves to tell stories about people overcoming their biggest obstacles and share the good news that his community has to offer. Share your story ideas and important issues with Griffin by emailing him at griffin.gonzalez@wrtv.com.
