BAGI Reports 4% Year-Over-Year Increase in New Home Construction Permits, Indicating Continued Housing Market Resilience

INDIANAPOLIS (June 20, 2025) — The Builders Association of Greater Indianapolis (BAGI) reports a 4% YOY increase in single-family building permits across Central Indiana after May 2025, signaling continued momentum in the region’s residential construction market. 

According to the latest permit data, 987 new home permits were issued in May 2025, up from 855 in May 2024. The year-over-year growth reflects steady buyer demand and the adaptability of local builders, many of whom are finding success with spec (move-in ready) inventory—even amid ongoing economic headwinds. 

“May’s numbers underscore the strength and resilience of Central Indiana’s housing market,” said Chris Hancock, CEO of BAGI. “Builders are taking a strategic, informed approach—aligning with shifting buyer expectations and broader economic trends. Our region remains a desirable destination for homebuyers, and we expect that demand to hold steady through the remainder of the year.” 

As builders look to the second half of 2025, they continue to balance variables such as interest rate volatility, inflation concerns, supply chain pressures, and local policy changes. Despite these challenges, the outlook remains optimistic as the industry embraces thoughtful growth and development strategies.