Terre Haute’s housing market is hot, very hot according to Zillow.com. 2019 home values increased 3.9% over the previous year and are continuing to climb. Rents are up a more modest 2.85% for the city over last year Dec. 2018-Dec. 2019.
But even though Vigo County Homes are being accessed more tax, the property tax caps that Mayor Bennett and School Corporation officials blame for all of the financial problems continue to exist. See, when a home has a tax cap at 1% of its value, the city is still being choked to death. The example is illustrated in the chart below.
Back in 2002 when the Median home price was barely $80,0000 in value. The 1% tax cap in place today would have generated $800 for local leaders to spend. That same home owner today will pay close to $1000 in property taxes and by 2025 $1,112 and that is just not enough money to pay all the government growth needed for a community as vibrant, and growing as this one. Services have continued to grow in the community and Uncle Sugar has to pay for it. Of course the additional property tax referendums will help adding a another few hundreds bucks onto those tax bills, but its very hard to grow government payrolls, police, firefighter, and pension benefits.
The current median listing price for a home in Terre Haute according to Walletinvestor.com is $98,496 and the expected growth over the next five years is 12.9%. The predicted average price of a home in Terre Haute by Jan. 31st, 2025 is $110,990. This makes Terre Haute a very hot seller’s market now and in the foreseeable future.
Rents are also on upward trend and expected to do so. The current median rent in Terre Haute is $720, an increase of 2.9% Dec.2018- Dec.2019.
Homeowners are reaping the benefits of a housing market recovery from the 2008-2009 Recession and Housing Market Crash.
City and County Government tax revenues are swelling as well as the glut of foreclosed homes has decreased and home values have sky rocketed.
Homeless people are not left out in the cold with Terre Haute’s rising home prices. Even though higher paying manufacturing jobs are being replaced with low pay service industry jobs, hope is on the horizon.
Homeless To See New Shelter
A new homeless housing complex will be built in Terre Haute. Phase Two of Unity Village has been fast tracked by the Indiana Housing and Community Development Authority in partnership with the Corporation for Supportive Housing. Mental Health America of West Central Indiana will operate the facility and has two others in Terre Haute. The expected construction cost are $6 million dollars funded by IHCDA and Corporation for Supportive Housing.
Point in Time Project required by HUD attempts to Count Homeless People in Terre Haute on Wednesday Jan. 23rd.
A homeless count conducted by volunteers in July 2019 classified 566 people as homeless. This number included those living in shelters, recovery houses, and on the street.
In June of 2019, former City Council Member and current assistant fire chief Norm Loudermilk suggested the city designate a place for homeless to set up their “shanty towns”. Loudermilk stated that the homeless were setting fires and trespassing. Loudermilk proposed allowing the homeless to build shanty towns on the former International Paper site along the Wabash River. The homeless would have access to water, catfish, and have space for tents apparently.