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Floyd County’s growth puts housing, city-county cooperation in focus

Floyd County has added nearly 20,000 residents since 1980, but most growth has happened outside New Albany—and rising costs are leaving more residents struggling to afford basics. As the city’s next mayoral race takes shape, residents say housing and strained relations between local governments demand attention.

Floyd County’s growth puts housing, city-county cooperation in focus

NEW ALBANY, Ind. — Floyd County’s population has grown by nearly 20,000 since 1980, while New Albany added fewer than 1,000 residents. The expansion has brought new subdivisions, rising home values and a revived downtown, but it has also sharpened questions about affordability, homelessness and how the city and county work together.

Those concerns are likely to figure in New Albany’s 2027 mayoral contest. State Rep. Ed Clere, a former Republican who is running as an independent, says voters are ready for a break from partisan conflict and more than 15 years of the same mayor. Current Mayor Jeff Gahan is expected to seek a fifth term, and a Republican challenger has also announced a campaign.

Clere says city and county leaders need to cooperate on affordable housing and sustainable growth. That could be difficult in a county where residents describe a long-running divide between New Albany in the Ohio River valley and the more affluent, largely unincorporated communities in the hills.

The differences show up in income as well as geography: a comparison of local ZIP codes found median household income on the hill is about twice that in the valley. The areas also tend to vote differently. In the 2024 election, Floyds Knobs and nearby precincts strongly favored Donald Trump, while most New Albany precincts backed Kamala Harris.

Growth has largely happened beyond New Albany’s city limits, as people moved to Floyd County for jobs in Louisville, lower taxes or schools. Some residents say the expanding suburbs are becoming more politically diverse, even as local politics remain divided.

The split has also shaped how public services are organized. The city and county each have a 911 center and parks department, and they have disputed control of the animal shelter. Floyd County Council President Danny Short, a Republican, described cooperation between the governments as difficult. He expects the mayor’s race to be closely contested.

For residents facing rising costs, however, housing is an immediate concern. Hope Southern Indiana, a New Albany food pantry, served more than 650 new clients in the three months before the Oct. 5 reporting visit, according to interim leader Heather Liebert. Many were people who had not previously needed food assistance and were struggling with the combined cost of housing, groceries and gas.

Liebert said rents above $1,000 a month can leave families with little room for unexpected expenses. She and other local advocates say the area also needs a homeless shelter.

Downtown investment has brought restaurants, shops and public events to New Albany, but it has pushed rents higher, said John Manzo, a retired minister whose church served free meals. He said that economic gains have not reached everyone. Clere likewise described housing and homelessness as shared community responsibilities, while acknowledging that proposals can face neighborhood opposition.

The county’s growth has brought visible benefits. Home values have risen, and New Albany’s downtown has been revitalized, with an amphitheater overlooking the Ohio River hosting concerts and community events. Residents also point to strong schools and the area’s proximity to Louisville, about a 10-minute drive from New Albany.

But growth has costs for businesses, too. Parker Huncilman, whose family’s New Albany metal-fabrication company was recently acquired by NIX Industrial, said bridge tolls have discouraged potential employees from crossing the Ohio River from Louisville. Rising diesel prices also affect the company’s delivery costs.

For Clere, the county’s future depends on moving past the longstanding city-county feud. He says leaders should focus on what residents want the area to become rather than revisiting old disputes—a challenge that will grow more consequential as Floyd County continues to change.

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