BAGI Reports 10% Year-Over-Year Increase in September New Home Construction Permits

INDIANAPOLIS (October 22, 2024) — The Builders Association of Greater Indianapolis (BAGI) has announced a remarkable 10% year-over-year increase in new home construction permits for the month of September, 26% year to date. This significant growth highlights the continued strength of Indiana’s home building market and the construction industry’s resilience amid changing economic conditions.

The September report reflects robust demand for new housing in Central Indiana, a trend driven by factors such as sustained population growth, an influx of younger households, and the steady demand for more affordable housing options. The increase in permits points to growing confidence among builders and developers, who are moving to meet the rising demand despite ongoing affordability challenges in the market.

“We are thrilled to see such a positive trend in new home construction,” said Steve Lains, CEO of BAGI. “The 10% increase in permits is a strong indicator of the continued health and resilience of Indiana’s housing market. Our builders are responding to a clear demand for new homes, but supply constraints are hindering our ability to meet that demand. That includes government regulation entitlements, materials, and land availability. Supply is still the issue.”

While the full breakdown of the permits is yet to confirm the inclusion of multi-family units, recent trends across Indiana have shown a surge in both single-family and multi-family developments. Factors such as population growth, the rising popularity of urban living, and low interest rates on construction loans may have contributed to the overall increase.

As Indiana continues to experience strong economic growth and migration into the state, the demand for housing, particularly affordable and diverse options, is expected to remain high. BAGI’s September report is a positive sign for homebuilders and a reflection of Indiana’s healthy and growing real estate market.