Indiana's Race to Build: New Laws, Development in Vigo County, and the Limits of Deregulation

“Get out of the way and push for more building.” ^[1] That is the gospel according to local and national leaders alike. From mayors to policy makers and politicians: America is short on homes, and deregulation is the answer.

The narrative is clear. Ever since the 2008 financial collapse gutted the construction industry, America has underbuilt.^[2] A decade of lagging supply has left renters and buyers squeezed, and the construction and real estate lobby—backed by everyone from Zillow to the National Association of Homebuilders—has the same solution: cut zoning laws, waive environmental reviews, and streamline permits to let builders build.

Politicians have heeded the call. From the federal 21st Century ROAD to Housing Act to Indiana’s own House Bill 1001, lawmakers have rolled out the red carpet for developers. ^[3] The Indiana bill specifically centers on accelerating the permit process, restricting building and/or permitting fees, and reducing R-2 building restrictions.^[4] The bill requires local governments to review city and county zoning ordinances for possible changes that would help increase housing development.

Industry groups lauded the Indiana bill. The National Association of Homebuilders proclaimed the bill “a big housing win,” arguing that the bill will “drive down the costs of homeownership by rolling back costly regulatory barriers to housing development.”^[5] The Indiana Association of Realtors also promoted the bill; its CEO, Mark Fisher, published an op-ed that advocated for the deregulation of local zoning.^[6]

Localmotion: Residential and Commercial Development

In Vigo County, Mayor Brandon Sakbun and the Vigo County Commissioners have promoted new construction in Terre Haute and the county, their stance in step with the state and national push for housing. In a June 6, 2026 interview on WTWO, when asked about how 2026 is going so far, Sakbun immediately cited building permit data: “residential construction has picked up, which is good. Commercial construction has picked up, which is good.”^[7] Sakbun also weighed in on deregulation, stating that “one way to help this housing crisis that we are in nationwide, frankly, is for government to really get out of the way and push for more building. . . . We can make it easier for homes to be built here in Vigo County and in the city of Terre Haute; we’re focused on that.”^[8]

Recent local, government-supported housing projects include Southard Homes Infill (2023-2025) and the Urban Homescape Initiative (2025). Both projects rely on a combination of public and private financing and focus on single-family homes.^[9] Multi-family projects include the planned apartment building on the site of the former Terre Haute Police Headquarters on Wabash Avenue and S. 12th Street and an apartment complex underway, Wabash Place, at Margaret and South 1st Street.^[10]

Vigo County Commissioners Mark Clinkenbeard and Chris Switzer echo Sakbun in celebrating new construction in the county. Switzer, in a social media post dated April 1, 2026, touted the announcement that Target would be building a store east of Terre Haute: “projects like this don’t happen by accident–they’re a reflection of the momentum we’re building in Vigo County. . . . It reinforces our commitment to continued growth, strong infrastructure, and a vibrant local economy.”^[11] Switzer’s post focuses on commercial development, and the cited “momentum” is part of the larger local narrative in which construction, both commercial and residential, is presented simultaneously as the driver and the evidence of economic growth in the county.

When faced with recent code and zoning debates, the commissioners, as well as the mayor, have stood squarely on the side of de- (or no) regulation. Consider Gibson Development’s failed petition to rezone a portion of Ohio Boulevard (Special Ordinance 18, 2025), west of Deming Park, in June 2025. While many residents opposed the petition to rezone, Commissioners Clinkenbeard and Switzer, as well as Mayor Sakbun, all vocally supported the proposal. In numerous public statements, the politicians repeatedly framed their support in terms of the city’s need for housing, which–they argue–would fuel both jobs and population growth.^[12] As Switzer wrote: “I understand that some neighbors have voiced opposition. Their concerns deserve to be heard, but we cannot let fear of change outweigh facts or long-term vision. Rejecting a $70 million investment would send the wrong message–not just to this developer, but to every company looking at Vigo County as a place to grow.”^[13] For Switzer, local residents’ concerns are valid, but they are secondary to the push for development.

In August 2025, the commissioners and the mayor went on to oppose new city regulations in the form of a proposed historic preservation ordinance.^[14] Clinkenbeard warned that passing a historic preservation ordinance in Terre Haute “would risk slowing the momentum we have seen recently in home building and business development.”^[15] Switzer was equally vocal on social media, posting against the proposed ordinance: “Terre Haute needs progress, not more red tape.”^[16] The mayor too spoke against the proposal: “I want to be clear, you can embrace history and help preserve it without making life more difficult for private property owners and businesses.”^[17] In both cases, the petition to rezone on Ohio Boulevard and the proposed historic preservation ordinance, Clinkenbeard, Switzer, and Sakbun–like numerous other politicians and policy makers across the state and the country–advocated for deregulation as a cornerstone to development.^[18]

The Blind Spot: Deregulation

Politicians promise that deregulation will create more housing for everyone. But what does the data actually show? Post-recession, academic research on state and local housing regulations shows the push for deregulation side steps macro-economic constraints, such as increased labor costs, elevated interest rates, construction materials tariffs, and income inequality. “There is no clear and uncontroversial evidence that housing regulation is a principal source of differences in home availability or prices across cities.”^[19] Researchers have analyzed population, migration, economic growth, home prices, and land development, and their results debunk many of the current takes on urban development. Less housing regulations do not necessarily lead to greater migration and population. And more population does not automatically produce more economic growth. Scholars Rodriguez-Pose and Storper cite the example of Las Vegas, where relatively lax housing regulations may have fueled a population expansion, but that population expansion has not resulted in economic growth. Las Vegas is a counter example to a city like Boston, which has a highly regulated housing market, and has seen both high levels of population and economic growth.^[20] As research shows, it is not housing that creates economic growth, it is economic growth that creates the demand for housing.

In Vigo County, population fell from the 2010 to the 2020 census by 1.57%, almost 1,700 people.^[21] 2025 estimates show a slight reversal with an increase of 359 people or roughly one third of one percent.^[22] The increase is welcome to the extent that it creates more demand for housing, but increasing supply alone is not a path to economic growth on its own.

The second big finding from the scholarship on zoning is that data shows that upzoning, which allows for higher-density housing, primarily serves high-income earners and thus reinforces, rather than alleviates, housing inequality.^[23] “Less restrictive zoning may gentrify inner metropolitan areas, but do little about housing affordability for the less-skilled.”^[24]

Vigo County is a good example of the potential disparity between more homes and more affordable homes. The median household income in the county is $52,976.^[25] The median sale price for single-family homes in Vigo County ranges from $185,950 to $217,000, and the median rent for a one-bedroom apartment ranges from $800 to $960/month.^[26] The Southard Homes Infill project built 15, new, single-family homes with a sale price of $140,000 to $150,000 each, all of which have been sold.^[27] At this price point, the Southard Homes are within reach for median income households in the county. In contrast, the planned homes for the proposed rezoning on Ohio Boulevard were slated to sell for between $350,000 and $400,000, while the project’s apartments would rent for up to $1,872/month.^[28] These prices are beyond the reach of median income households in Vigo County, the $350,000 sticker price roughly 6.5 times the annual median income. This example clearly illustrates, at the local level, exactly what research has long shown: deregulation typically favors developers selling homes to better-off, high-income earners.

Indeed, there is no conclusive evidence that deregulation alleviates either housing availability or affordability. Rodriguez-Pose and Storper argue that “the targeted policies that would be needed to reduce spatial-economic segregation may involve increased regulation and other forms of public intervention into the housing market, exactly the opposite of the deregulation approach.”^[29] Even non-profits that celebrate state and local zoning revisions, repeatedly assert the need for “governments at all levels to intervene more aggressively to help bring down housing costs.”^[30] As the Center for American Progress’ housing report stated, “cutting so-called red tape is not sufficient.”^[31]

When local leaders celebrate a $70 million market-rate development or mimic national talking points about a “housing crisis,” they are treating Terre Haute like Austin or San Francisco. But Terre Haute does not have a land-shortage crisis caused by strict environmental reviews; it has a poverty and wage crisis. The poverty rate in Terre Haute hovers at around 25%, meaning one in four residents is under the poverty line.^[32] This rate is double the national rate, which is 12.5%. Wages in the city also lag. The local median hourly wage of $25.67 in May 2025 is well below the national average of $33.54.^[33] Local deregulation of housing will not fix this.

As Terre Haute and Vigo County double down on the belief that cutting red tape will build the way out of the housing shortage, the evidence suggests otherwise. Deregulation is not a strategy for affordability. It is a quick fix that often results in direct benefits to developers, builders, and their industry. And it removes important public debate, such as those centered on the petition to rezone the property on Ohio Boulevard and the proposed historic preservation ordinance.