INDIANAPOLIS (February 28, 2024) – The Builders Association of Greater Indianapolis (BAGI) just released its January permit breakdown, which shows tremendous and atypical growth in the single-family housing market over December and January.

After amending the January report to include 15 additional permits issued in the Town of Danville, BAGI is pleased to report that there was no significant change in overall demand, year-over-year, in Central Indiana’s single-family housing market from December 2022 to December 2023.

While this may not seem like it computes with record and atypical growth heading into 2024, BAGI CEO Steve Lains is quick to point out that permit numbers are a somewhat delayed indicator of market conditions. Numbers reported throughout the year are often the result of market conditions from 2-4 months earlier, meaning that as real-time market conditions improved toward the end of the year, permit numbers reported from purchases in prior months did not reflect the positive changes to market conditions.

These positive changes positioned the market well for a strong start in 2024. According to the February permit report, there was a 77% jump in overall demand, year-over-year, from January 2023 to January 2024, with 717 permits issued in BAGI’s service area.

With the exception of Boone and Madison Counties, all Central Indiana counties experienced positive growth, with Hamilton, Hancock, and Johnson Counties seeing triple-digit results. Hamilton County issued 116% more permits, year-over-year; Hancock County issued 189% more; and Johnson County issued 333% more.

“We knew the gradual decrease in interest rates would have a positive impact on our industry,” said BAGI CEO Steve Lains. “However, we were pleasantly surprised to see the dramatic growth reported throughout our service area. This is a great way to start the new year! Generally speaking, each 1% drop in interest rates equates to an approximate 10% drop in the homeowner’s monthly payments, so we’re seeing people who have been on the fence about purchasing a lot and building a home come off the fence and decide to lock in their rate while rates are hovering around 6.5%.”

Permit Breakdown by County: 

County        2023 Permits (Jan)  2024 Permits (Jan) 
Boone County          84  74
Hamilton County          115  248
Hancock County          27  78
Hendricks County          40  78
Johnson County          18  78
Madison County          37  23
Marion County          67  111
Morgan County          13  19
Shelby County          8

For further information and access to the full January permit breakdown report, please visit the Builder’s Association of Greater Indianapolis website at https://www.bagi.com/permits.

BAGI remains committed to promoting, educating, and serving its members and the housing industry in the Indianapolis area, and will continue to monitor and support the growth in building permits and overall housing market activity.

For more information about permit numbers, or to discuss local homebuilding trends with Lains or other BAGI officials, contact Kristen Hoyt at 317-764-7018 or kristenhda@thecaway.com.