Central Indiana Homebuilding Closes 2025 with an Increase in Permit Activity

INDIANAPOLIS (January 27, 2026) — The Builders Association of Greater Indianapolis (BAGI) reports that single-family building permit activity across Central Indiana closed out 2025 on stable footing, with year-end totals modestly exceeding 2024 levels. The nine-county region recorded 10,173 permits in 2025, compared to 10,044 permits in 2024, reflecting a 1% year-over-year increase and underscoring continued housing demand despite economic and seasonal headwinds. 

Permit activity remained consistent during the final months of the year, in line with typical winter seasonality and broader national housing trends. According to the U.S. Census Bureau and analysis from the National Association of Home Builders (NAHB), single-family permitting and housing starts softened across much of the country late in 2025, as elevated interest rates, affordability constraints, and economic uncertainty weighed on builder confidence. Against that backdrop, Central Indiana’s year-end performance remained relatively steady, reflecting a market that continues to adjust cautiously while maintainingunderlying demand. 

“Central Indiana’s housing market finished 2025 in a balanced position,” said Chris Hancock, CEO of BAGI. “Builders responded thoughtfully to changing conditions throughout the year — managing inventory carefully, aligning with buyer demand, and maintaining a disciplined approach to new construction.” 

While market conditions varied across the region, overall permit totals point to a housing market that remains resilient. Population growth, declining interest rates, relative affordability compared to larger metropolitan areas, and sustained interest in homeownership continue to support new home construction in Central Indiana, even as national markets experience more pronounced slowdowns. 

“Compared to national trends, Central Indiana continues to demonstrate stability,” Hancock added. “Those fundamentals position the region well as builders and buyers head into 2026.”