Let's Talk About It: Apartments, Condos, and Single-Family Homes in Noblesville
My Perspective on Housing Development in Noblesville
Over the past five years that I’ve been on Council, one question has consistently come up on Facebook, in conversations at the coffee shop, and on walks with my kids: "Why are we building so many apartments?"
I understand the concern behind it – Noblesville is experiencing growth and it's natural to question where it’s headed. My goal here is to provide clarity on the way I look at our housing strategy, explain the factors that influence my decisions, and address some of the common concerns.
As always, if you have any thoughts, questions, or criticisms (only if you read the entire email!) I’d love to hear them.
Best,
Aaron Smith
317-445-1045
Table of Contents
I. Introduction: The Apartment Question, Regional Housing Challenges, and Economic Pressures
II. Types of Housing in Noblesville: Single-Family Homes, Townhomes and Condos, Apartments
I. Introduction
Here are a few things to know before we dive in:
Housing challenges are not unique to Noblesville — cities across the state and country are grappling with similar issues. We're part of a larger conversation about how to provide adequate housing options for all residents, albeit we may be experiencing more pressure with the growth on our doorstep.
Housing challenges don't stop at our city borders. This is why we need to approach housing from a regional perspective. For instance, Noblesville currently carries 66% of the subsidized housing within Hamilton County. While I recognize the need for affordable housing, I believe that it's crucial that our neighboring communities also engage in this conversation and contribute to solutions.
Supply & demand applies to housing. The best way to ensure that housing prices remain affordable in a free market is to maintain an adequate supply so demand and price stay low.
Translation: If we have a high number of diverse, quality housing options, there’s a better shot at prices stabilizing.
II. Okay that makes sense. Now, what kind of housing options does Noblesville consider?
We build three primary types of housing, each playing a crucial role in our community and affected differently by Indiana's tax structure:
Single-Family Homes
Single-family homes are the most prevalent type of housing in Noblesville. These properties are typically owner-occupied, though some may be rented. Under Indiana's tax structure, owner-occupied single-family homes are subject to a 1% property tax cap. This cap means that property taxes cannot exceed 1% of the home's gross assessed value. Single-family homes offer the opportunity to build equity and tend to provide more space and privacy, making them attractive to families and individuals who prefer a traditional homeownership experience.
Single Family Home Developments Approved This Year:
Branson Reserve: East of Promise Rd, North of 191st St.
Lennar: Howe Rd. and 146th St.
The Courtyards at Hazel Dell: East of Hazel Dell, South of Midland Trace Trail
Townhomes and Condos
Townhomes and condos represent an important middle ground in our housing market. Overall, they tend to be an affordable option compared to single-family homes since more high-quality units can be built on a given site. In terms of taxation, townhomes and condos are also subject to the 1% property tax cap (if owner-occupied), similar to single-family homes.
This year, the Noblesville City Council started including a one-year rental prohibition on this type of housing product, giving those interested in building equity in Noblesville the ability to do so prior to out-of-state investors. Townhomes and condos are particularly appealing to first-time homebuyers, downsizing seniors, or those who want to build equity without the maintenance responsibilities of a single-family home.
I go into more detail on this below, but I’ve asked the Administration and development community to prioritize townhome/condo developments in downtown Noblesville in the future.
Townhome Developments Approved This Year:
Village at Trail Crossing: West of Hazel Dell Rd, South of Midland Trace Trail
Montelena: Greenfield Ave and Promise Rd
Oasis at Hyde Park: 146th St, East of Marilyn Ridge
Apartments
Apartments also play a unique and vital role in our housing ecosystem. In Indiana's tax structure, apartments are classified as rental property and are subject to a 2% property tax cap, double that of owner-occupied homes. This higher tax rate generates additional revenue for the city initiatives like infrastructure improvements and public safety services. Despite the higher tax rate, apartments can be easier on city services as they're frequently developed as “infill projects”1 in areas with existing services.
Important Note About Downtown Apartment Capacity
The process of assembling these development projects often take years. In the next section, I share a bit about Noblesville’s capacity for apartments downtown and what the future looks like for this type of housing.
As we’ve added an inventory of apartments to the mix, we’ve seen interest from:
Empty nesters who don’t want to maintain a home anymore.
Grandparents that stay in Noblesville (or move to Noblesville) to be closer to family.
Young professionals seeking to return to Noblesville.
And those seeking flexibility in their living situation.
Apartment Developments Approved This Year:
Noble West: North of 146th Street, East of Hazel Dell
The Granary: NE corner of S 8th and Walnut
III. Looking across the city, what is the status of everything that the Council has approved?
Developers have to work closely with our Planning Department while building out their developments, so we’re able to see roughly how many homes, townhomes, and apartments are approved and are in the process of being built.
Across the City of Noblesville, we’re building more homes and townhomes than apartments and rental units.
Currently, there are roughly 2,500 single family homes and 600 townhome/duplex units that are in the process of being built (or that have been approved, but are currently unbuilt) that will be available to purchase when completed.
Put together, the number of units available to rent (apartments, duplexes, and age-restricted senior apartments) are fewer than the options available for purchase in Noblesville.
We studied the capacity for apartments within downtown Noblesville — and here’s what you should know:
Large-scale development projects in our downtown area typically involve a lengthy planning and approval process, often spanning several years.
In the past few years, the City conducted a comprehensive study to assess our downtown's capacity for additional housing. The results indicate that we have sufficient capacity to accommodate all currently approved projects, as well as those that were already in the planning pipeline when the study was conducted, such as the Granary that was recently announced.
To ensure sustainable growth, any new proposals that weren't already under consideration with the Administration at the time of the study have been asked to postpone their applications. This approach allows us to manage our development responsibly while honoring our commitments to previously approved or in-progress projects.
Projects approved by size while I’ve been on Council:
Largest Owner-Occupied Housing Development (Available for Purchase): Finch Creek by Del Webb
When completed, this neighborhood will nearly span from 156th to 166th, and Boden to Olio and contain more than 1,100 high-quality single-family detached units available for purchase. There will also be a small component of apartments and senior living for rent in the community (Area D in the SW corner on the map below).
Smallest Owner-Occupied Development (Available for Purchase): Retreat at Morse
Located at the NW Corner of Hague Road and 196th Street, this small neighborhood will be built as duplexes that are targeted to seniors.
Largest Apartment Development (Available for Rent): Hyde Park
Located directly adjacent to Hamilton Town Center, this comprehensive development contains apartments, townhomes for purchase, and single-family homes available for rent and for purchase. This development will help ensure Hamilton Town Center remains a thriving economic engine.
Smallest Apartment Development (Available for Rent): Townhomes at Stony Creek
Located just south of Pleasant and 16th Streets, Family Promise of Hamilton County is pursuing federal subsidies to build 51 townhomes that will be marketed for affordability.
The IndyStar recently wrote an article that details this development and the challenges that come with it. Click here to read it.
IV. When Council considers developments, are you able to put specific stipulations on the approval?
When it comes to development layout, access to infrastructure, and architectural standards — yes, we are able to make development approval contingent on those expectations.
There are legal limitations though on what the City Council can and cannot demand regarding housing developments.
Based on federal law, it’s illegal for the City Council to demand specific price points for housing developments. While we can encourage more general affordability goals, we cannot dictate to developers what prices they should set for their properties.
Similarly, we are not allowed to prevent developers from building rentals in our community as a blanket policy.2 Federal housing guidelines prohibit us from taking such action, as it could be seen as discriminatory.
V. How has the City of Noblesville gained control of the market, where possible?
Given the constraints, we've had to think creatively about how to encourage owner-occupancy, community stability, and affordability while staying within our legal boundaries.
HOA-Mandated Rental Restrictions: While federal law puts certain limits on the restrictions we're able to put on housing developments as a Council, we wanted to take action within our legal boundaries to ensure that residents who wanted to put roots down in Noblesville had the first shot. Starting in 2024, we've made the approval of any for-sale townhome product contingent on the HOA crafting and imposing protections against buyers from renting within a year of purchase. These restrictions will be recorded by the HOA against each lot so that buyers are aware of the restrictions at time of purchase.
Downtown Apartment Affordability: Additionally, we've taken steps to address affordability in our downtown area. For many of our new apartment projects in downtown Noblesville, we’ve asked developers to set aside 10% of the units to be accessible to those below the Area Median Income (AMI). This voluntary measure helps ensure that our downtown remains accessible to a range of residents.
Empowering Local Partners: The City of Noblesville has donated vacant houses to Habitat for Humanity and HAND after the Pleasant Street extension was rerouted around the historic Plum Prairie neighborhood. These donations allowed local non-profits to preserve a piece of Noblesville’s history while providing affordable housing options. Take a look at those properties HAND has rehabbed here.
It's important to understand that this is a delicate balance. We're working to create policies that benefit our community while respecting individual property rights and staying within the bounds of the law. Our goal is to create a stable and thriving community that works for all of Noblesville's residents, across various income levels and life stages.
VI. Generally speaking, what approaches does the development community have at its disposal to build affordable and attainable housing?
The development community generally uses three approaches to create affordable housing:
Option #1: Federal Subsidies
This approach involves using government funds to directly subsidize housing costs. Programs like Section 8 vouchers or Low-Income Housing Tax Credits fall under this category. While these programs can provide immediate relief to low-income residents, they come with several challenges:They often require ongoing funding, which can be unpredictable and subject to political changes.
There's typically more demand for subsidized housing than available units or vouchers.
Subsidized housing can sometimes lead to concentrated areas of additional need of public services if not carefully implemented.
As I mentioned near the top, it’s important for this approach to be analyzed regionally.
Option #2: Lower Quality Construction
This approach aims to reduce costs by using less expensive materials or simplified designs. While this can indeed lower the initial price of housing, it comes with significant downsides:Lower quality housing often has higher maintenance costs over time, which can burden residents and potentially lead to deteriorating neighborhoods.
It may not align with our community's standards for safety, durability, and aesthetics either.
Option #3: Increase Number of Dwelling Units
Similar to the way downtown Noblesville was developed more than a century ago, this approach involves building housing closer together than a typical neighborhood. It can take various forms, from duplexes and townhomes to small apartment buildings (ex. Lofts on 10th).It allows for more efficient use of land, which is especially important in growing places like Noblesville where space is at a premium.
This type of development strategy can lead to more vibrant neighborhoods, supporting local businesses and fostering a sense of community.
It can reduce infrastructure costs overall, as more people can be served by the same roads, utilities, and public services.
VII. So, where do we go from here?
Going door-to-door in my campaigns, I committed to many of you that I’d work towards a balanced approach — creating new, sustainable options while preserving the qualities that make us unique. Housing is a complex issue, influenced by market forces, legal constraints, and the needs of our residents.
As we look to the future of Noblesville, I’d like to see us embrace:
Development that mirrors the characteristics of downtown Noblesville. When we have high-quality options of all sizes within proximity of each other we can ensure that housing is accessible, durable, and a long-term asset at all stages of life.
Quality developments that prioritize gathering spaces and connecting shared assets (i.e. trails): The Village at Trail Crossing is great example of a future development that provides quality homes, open space for residents, retail and restaurants within walking distance, and access to pubic amenities like the Midland Trace Trail.
Condos or townhomes for purchase within walking distance of downtown. While financing can be tough, I’ve continued to ask the development community to bring forward options that will give current and future residents the option to build equity in downtown Noblesville in a condo or townhome.
If you’ve read this far, thank you for taking the time to better understand this complex issue. As we move forward, don’t hesitate to share your feedback. When we all stay engaged, our community and new developments are stronger.
If you have any questions or would like to discuss this further, please don't hesitate to reach out.
Best,
Aaron Smith
317-445-1045
Infill development refers to the construction of buildings on previously unused or underutilized land located within an existing developed–area (i.e. parking lots or land in between current developments)
While we as a Council are bound by these legal restrictions, it's worth noting that Homeowners Associations (HOAs) have more flexibility in setting certain rules for their communities. HOAs can, in many cases, implement rental restrictions or other policies that the City Council cannot.
Mayor wants Tobe governor of Indiana and hopefully the mayor and city council will be voted out next election.. no need or want for more aprtments
Thank you for writing this Aaron and for your thoughtful approach.
There is one real solution to rising home prices: building more housing.
When demand outstrips supply, costs go up.
City councils, state legislatures, federal bodies should all be encouraging - not discouraging - more housing units coming online.
A mayor in a neighboring city once said 'everybody wants new housing unit construction to end the day AFTER they buy their home.'
I'm for more apartments, more single family units, more of everything - and I support this in large part so that there can be more affordable options for our neighbors who can't afford a $500k restored home in Old Town.
YIMBY! (Yes in my backyard!)