Nonprofits team up to tackle Indy's affordable housing crisis
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Aïda Amer/Axios
Indianapolis has a shortage of affordable homes. A pair of local nonprofits has a solution — build them.
The big picture: Coupled with the shortage, high housing prices and mortgage rates are keeping many families out of the market.
- The median age of the typical first-time homebuyer in the U.S. is the oldest on record and first-timers made up just 21% of buyers between July 2024 and June 2025 — a new low.
Why it matters: Homeownership, the largest source of wealth for many American families, is a powerful tool for long-term financial stability and upward mobility.
Driving the news: Sagamore and Shepherd Community Center have partnered on a new program, Building Foundations of Hope, to provide access to that powerful tool to more families on the city's east side.
- They're partnering with builder Arbor Homes to build new housing on empty lots in the Shepherd neighborhood that the nonprofit then buys at cost and rents to families who will eventually buy the home below market value.
- "They're buying into equity, which is missing so much in our neighbors," Jay Height, Shepherd's executive director, tells Axios. "They're not able to build up equity."
How it works: Shepherd buys the home from Arbor for about $130,000 and, after three years of renting, the family purchases it for about $150,000 — far below the estimated market value of roughly $300,000.
- Half of the rental payments go toward a down payment for their mortgage, while the other half goes back into the program for future families.
- During the rental period, the families will participate in Shepherd's "Homeowner University."
State of play: Buying the home isn't the finish line — homeownership is.
- Homeowner University teaches families how to save for a down payment and home repair costs, how to improve their credit score before applying for a mortgage and provides other life and work skills to give the family more financial stability.
Reality check: A dozen new homes won't solve the affordable housing crisis.
- Jeff Sparks, a fellow with Sagamore leading the initiative, said they'd love to do more, but faces challenges like finding suitable properties.
- They're running up against out-of-state investors who own lots or abandoned properties and can be hard to reach, he said.
- These investors, which own thousands of properties across the county, are driving up prices and driving down the inventory of affordable homes.
The latest: The first home is finished, and a family has moved in. The second home is nearing completion.
- Height said families are identified from those already in the Shepherd family, ensuring they have the support and resources to be successful.
What's next: The program is looking for contributors to achieve the funding goal of becoming self-sufficient, Sparks said.
- "If we can do two (homes) a quarter, that would be significant," he said.
- Interested contributors can donate online and add "For Shepherd Affordable Home Ownership" in the comment section.