Preserving the American Dream

The imperative for rental caps & homeownership protections​

By TODD ZIMMERMAN
Fishers City Councilman

As a Fishers City Councilor At Large, I am deeply committed to safeguarding the integrity of our neighborhoods and ensuring that the dream of homeownership remains attainable for our residents.

Fishers has long been celebrated for its strong sense of community, excellent schools, and thriving local economy. Central to this success is our high rate of homeownership, which stood at 76.1 percent between 2019 and 2023. This stability has been a cornerstone of our city’s growth and prosperity

In recent years, we’ve witnessed a troubling trend: the increasing acquisition of single-family homes by institutional investors, both foreign and domestic, which poses significant challenges to our community’s fabric and the broader national housing landscape.

The rise of institutional investors in our housing market

International buyers purchased $42 billion worth of U.S. residential properties from April 2023 to March 2024, with the average purchase price reaching $780,300 – the highest ever recorded by the National Association of Realtors. These purchases often involve cash offers that outcompete local buyers, driving up home prices and making it increasingly difficult for American families to achieve homeownership. While international investment can bring economic benefits, the scale and nature of these acquisitions have raised concerns about affordability and accessibility for local families.

Moreover, institutional investors, including out-of-state entities, have been aggressively targeting single-family homes in our region. In central Indiana, approximately 45 percent of single-family rental properties are owned by out-of-state investors, many of whom make cash offers that outcompete local buyers. These practices not only drive up home prices but also reduce the availability of homes for first-time buyers.

The impact on local communities

The influx of investor-owned properties has tangible effects on our neighborhoods. Homes converted into rentals by absentee landlords often lack the maintenance and care provided by owner-occupants, leading to declines in property values and community cohesion. Furthermore, the displacement of potential homeowners by investors exacerbates housing shortages and undermines the stability that comes with long-term residency.

Fishers’ proactive measures & the need for national action

In response to these challenges, Fishers has proposed a rental cap ordinance, limiting the number of single-family homes that can be used as rentals within subdivisions. This policy aims to preserve the character of our neighborhoods and ensure that families have fair opportunities to purchase homes. In our city, some neighborhoods feature up to 40 percent of all single-family homes as rentals. Forty percent!

However, local efforts alone are insufficient to address a problem of national scope. States like Nebraska have proposed legislation to restrict corporate purchases of single-family homes, recognizing the broader implications for housing affordability and community integrity. It’s imperative that we, as a nation, consider comprehensive strategies to regulate large-scale acquisitions that threaten the accessibility of homeownership.

A call to preserve the American Dream

Homeownership has long been a cornerstone of the American Dream, offering families a sense of stability, investment, and community belonging. To protect this ideal, we must implement policies that prioritize residents over investors, ensuring that homes remain within reach for those who live and work in our communities.

I urge policymakers at all levels to consider measures such as rental caps, restrictions on bulk purchases by institutional investors, and incentives for local homebuyers. By taking decisive action, we can uphold the values that define our neighborhoods and preserve the opportunity of homeownership for future generations.

The questions posed the most … Why now? Why Fishers?

My answer: If not us, who? If not now, when? Who will step up and defend those who simply want an opportunity for home ownership? When will communities rise up and say enough is enough?

It’s time and the City of Fishers is poised to lead the way. Together, let’s reaffirm our commitment to our communities. Let’s welcome those who want to establish their roots in our neighborhoods with an opportunity for home ownership.

Todd Zimmerman serves as an At Large member of the Fishers City Council. He can be contacted at zimmermant@fishers.in.us.