New Local Study Highlights Critical Housing Issues in Clark and Floyd Counties

Availability of Affordable Housing a Growing Challenge Throughout Region

The Community Foundation of Southern Indiana (CFSI) commissioned the Applied Research and Education Center (AREC) at Indiana University Southeast to produce the study, which explores the structural dynamics of income and the housing market in Clark and Floyd counties. The goal is to identify leverage points for changing the systems to produce better outcomes for the large portion of Clark and Floyd County residents who struggle with housing cost burden.

The study also emphasizes how existing economic and public policy structures contribute to rising housing costs that outpace incomes. This imbalance disproportionately affects lower-income households, particularly Black, Hispanic/Latine, and female-headed single-parent households, exacerbating precarious housing situations and long-term inequality.

Key findings include:

• A third of Clark and Floyd County households have incomes below $50,000. Those earning less than $50,000 per year are most likely to struggle with high housing cost burden. Housing that is affordable to these households is in short supply and market forces alone are not likely to increase supply at this price point.
• Approximately 52% of Clark County and 42% of Floyd County renters spend more than 30% of their income on housing costs.
• Among owners, 20.5% in Clark County and 15.3% in Floyd County spend 30% or more of their income on housing costs. This burden leaves households that simply can’t afford regular updates and necessary maintenance on their properties.
• Low vacancy rates, gentrification and the rise of short-term rentals, and growth in new workforce and high-end housing are pricing residents out, making it difficult for adults earning at or below Area Median Income (AMI) to enter homeownership, leaving vulnerable residents one “life event” away from being unhoused.

The report also highlights promising strategies being employed across the U.S. to address housing challenges, including community land trusts, land banks, and mixed-income housing developments. These innovative approaches could be adapted for Southern Indiana to expand affordable housing and support long-term community growth.

“This study is a call to action for our community,” said Linda Speed, CFSI President and CEO. “By coming together – local governments, nonprofits, developers, and financial institutions – we can create sustainable solutions that ensure everyone in our region has access to safe, affordable housing.”

The report emphasizes the need for collective action, urging stakeholders to align resources and develop policies that prioritize affordability and equity. Without intervention, the report warns, rising housing costs will continue to displace vulnerable populations and slow economic growth.

The Housing: The Affordability Challenge in a Growing Region report represents a vital step toward understanding and addressing housing challenges in Clark and Floyd counties. With intentional collaboration and innovative thinking, the study points out that Southern Indiana can align its resources (knowledge, land, funding, policy levers, eligibility for grants, and other forms of capital) to create innovative affordable housing models. CFSI’s board of directors has also dedicated discretionary funding to further get this process started in 2025.

For more information about the study or to read the full report, please visit www.CFSouthernIndiana.com/housing.