BAGI Reports 1% Year-Over-Year Increase in New Home Permits, Though Market Shows Seasonal Softening

INDIANAPOLIS (October 30, 2025) — The Builders Association of Greater Indianapolis (BAGI) reports a 1% year-over-year increase in single-family building permits through September 2025, signaling steady momentum in the face of national slowdowns and seasonal moderation. 

According to the latest data, 7,911 permits were issued across Central Indiana through September 2025 — up slightly from 7,797 during the same period in 2024. While activity eased slightly this fall, the region continues to outperform broader U.S. housing trends, which showed a dip in both housing starts and permits heading into Q4. 

“After a strong summer, we’re seeing the market take a natural pause as builders recalibrate for the end of the year,” said Chris Hancock, CEO of BAGI. “Our members are focusing on delivering quality, well-timed inventory and maintaining disciplined production in response to fluctuating interest rates and affordability pressures.” 

Nationally, the slowdown mirrors broader trends reported by the National Association of Home Builders (NAHB), where single-family permits weakened in September as builders grew more cautious amid economic uncertainty and elevated borrowing costs. 

Builders across Central Indiana are emphasizing strategic pacing and diversification, with a mix of quick-move-in and custom homes designed to meet fluctuating buyer demand. This approach has helped maintain stability despite headwinds like elevated interest rates, persistent labor shortages, and policy uncertainty. 

“Permits are an early signal of builder confidence,” Hancock noted. “While national data shows a pause, Central Indiana’s consistency demonstrates our market’s underlying strength — supported by population growth, local economic activity, and buyers who remain committed to homeownership.”