BAGI Reports 16% Year-Over-Year Decrease in March New Home Construction Permits

INDIANAPOLIS (April 25, 2025) — The Builders Association of Greater Indianapolis (BAGI) reports a 16% year-over-year decline in new home construction permits for March 2025, continuing a trend of fluctuating activity in the residential building market as both builders and buyers navigate changing economic conditions.

According to the latest data, 735 permits were issued across Central Indiana in March 2025, compared to 877 permits in March 2024. While down from last year, some builders shared they had strong months by moving spec (move-in ready) inventory, indicating demand is still high regardless of persistent interest rate and policy uncertainty.

“While the year-over-year dip in March permits may appear significant, our Q1 has been quite strong,” said Chris Hancock, CEO of BAGI. “Builders are paying close attention to economic indicators and buyer demand, and they’re adjusting strategies to stay aligned with market needs. Central Indiana remains a highly desirable region, and we’re confident that demand will remain steady throughout 2025.”

Builders continue to monitor key factors such as borrowing costs, material availability, and local regulations as they plan new developments. Ongoing delays in Federal Reserve policy decisions and concerns about inflation are contributing to a cautious but steady approach to residential construction.