New Albany extends apartment building ban while growth pushes to rural parts of Floyd County

LOUISVILLE, Ky. (WDRB) — The City of New Albany has extended its moratorium on the construction of new apartment buildings for another year, continuing a pause first put in place in 2024.

While the city said the measure is meant to give time to rework zoning ordinances and guide future development, the demand for apartment living hasn’t gone away—it’s simply shifted.

With no new apartments allowed within city limits, developers are instead building in the surrounding areas of Floyd County. And not everyone living in those rural parts is on board with the boom.

In August 2024, the New Albany City Council chambers were packed with residents opposing a residential project proposed for the outskirts of town on Budd Road.

“I grew up here, was raised here, and had to unfortunately move over to Louisville for a period of time. I couldn't wait to get back here,” said Elisha Magness, an organizer against development. “Now I’m here, and in my childhood home and hometown.”

For many who showed up that night in August, the core concern wasn’t about apartments but about preserving the peace and quiet of rural Indiana. The project they opposed was actually a mixed-density residential development, which would have brought a large number of homes into a small area.

“Taking away the quiet” was the common thread among neighbors, who saw any new development as an encroachment on their way of life. That meeting came six months after the city’s original moratorium went into effect, effectively halting any new apartment construction in New Albany.

“If any of us had an idea this was gonna take place, we would have bought it ourselves,” one resident said during the August meeting, to a round of cheers.

The city is now in the process of reviewing and potentially revising its zoning laws. A study by the University of Louisville’s Urban Studies Institute revealed that New Albany has plenty of high-end apartments and more expensive homes but lacks affordable housing options in the $100,000 to $200,000 range.

That same study found that 54% of homes in New Albany are owner-occupied. However, 15% of single-family homes within city limits are rented out, something the city said it would also like to reduce.

“I don’t think the mayor wants a lot of rental housing downtown,” said longtime New Albany resident Dan Griffitt. “I can’t speak for him, but that’s what my feeling is.”

And that feeling is supported by where construction is currently booming—not in the city, but in the county, where new apartment complexes are on the rise.

As New Albany leaders hit pause to shape the city’s future, the pressure to grow hasn’t slowed, it’s just moved down the road.

Previous Coverage:

Some Floyd County residents speak out over proposed development they fear will upend quiet lives

New Albany committee advances proposed moratorium on new apartments

New Albany mayor recommends moratorium on new apartments