Building Permits Comparable to Pre-Pandemic Levels, Increasing Across U.S.
Despite last month’s single-family building permits being down 39% compared to February 2022, The Builders Association of Greater Indianapolis (BAGI) remains optimistic as homebuilding activity rises across the nation and returns to numbers seen at this time in 2019.
Central Indiana’s nine-county area saw 425 permits in February, which is near the 465 permits recorded in February 2019.
“Permit and building activity we have seen over the last several months is much more aligned with what we saw prior to the pandemic and before the record-setting, booming home construction we saw between 2020 and the beginning of 2022,” Steve Lains, BAGI CEO, said.
While supply chain delays, labor shortages and land availability are lingering challenges, the main focus has been on affordability, with mortgage rates currently sitting around 7 percent compared to 3 percent at this time last year. Despite this, demand continues to strengthen and grow for new homes in the Indianapolis area.
“The housing market demand remains larger than the supply available, and new home construction is critical to closing that gap,” Lains said. “Our builders remain optimistic that the market will continue to thrive as conditions stabilize.”
Permit Breakdown by County:
|County||2022 Permits (Jan-Feb)||2023 Permits (Jan-Feb)|