LOUISVILLE, Ky. (WDRB) -- The mayor of New Albany, Indiana, is recommending the city pauses building new apartments.

The city in southern Indiana partnered with the Urban Studies Institute at the University of Louisville for a comprehensive housing study. According to a news release, the study recommended New Albany focus on increasing availability of owner-occupied single-family homes, along with disincentivizing apartments and short-term rentals.

Mayor Jeff Gahan recommended the city council explored establishing a moratorium on the construction of apartments and halting the issuance of permits for short-term rentals.

"We believe that the American Dream begins with the opportunity to plant roots and purchase a home, and this study confirmed those beliefs," Gahan said in a statement Wednesday. "Last year, we initiated the GROWTH program to help incentivize single family homes, and now, we are doubling down on our commitment to increasing the availability of homes for people in New Albany by exploring a moratorium on apartments and short-term rentals."

Gahan said New Albany has little wiggle room for new construction, given much of its 15-square miles is developed. That's why he wants the city to make informed decisions for its future.

"We have to be wise in the way we allocate property and what we do with it," Gahan told WDRB News on Thursday. "We know we have enough apartments to satisfy the demand and then maybe a little more." 

Bill Burns is is the managing broker and owner of ReMax Jeffersonville. Burns said much of the region, and nation is in need of single-family homes, but adds apartments are also necessary.

"Builders are not building houses fast enough, nationwide, even in our market the demand is there," Burns said. "The American dream is owning a home and everybody wants homeownership. But you got to take baby steps to get there and where are they going to live in the interim if we don't provide some apartments?"

Given the city's lack of land, Gahan said it will consider revitalizing areas to add stock to available single-family homes. 

Burns said it will take some creativity.

"Find some land that maybe needs to be repurposed, you know, so that you can build single-family homes or do some infill projects, maybe in the downtown area," he said.

Gahan drafted an ordinance for the city council's consideration at the next meeting. The city council plans to discuss the recommendation at a committee meeting on Jan. 29 at 11:30 a.m. at City Hall.

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