INDIANAPOLIS (January 24, 2024) – The Builders Association of Greater Indianapolis (BAGI) just released its December permit breakdown, which shows that demand for single-family homes remained largely steady in BAGI’s service area, with most counties experiencing an uptick in the number of permits issued toward the end of 2023.

Overall, there were 524 permits issued for single-family homes in December 2023, which was a 36% increase year-over-year.

Based on the data, Boone, Hamilton, and Marion Counties continue to lead the way in growth, with cumulative demand up by 17%, 14%, and 10%, respectively from 2022 to 2023.

Hancock County saw a 100% year-over-year increase in December, which continues their pattern of steady growth over the last four months. BAGI is hopeful that this trend will carry over into the new year and further diminish the extent to which the market in this area is lagging behind.

Johnson and Madison Counties also saw staggering growth when comparing December 2022 to December 2023, with Johnson County seeing a 442% increase in the number of single-family permits issued and Madison County seeing an increase of 260%. However, both counties closed out the year with negative percentages for total number of permits issued in 2023 versus 2022.

While the numbers are less than encouraging for some counties, this report indicates that growth within the Central Indiana market remains steady, with the total number of permits issued in 2023 down by just 1% over 2022, from 7,992 to 7,944.

“Our optimistic predictions from early and mid 2023 were accurate. We finished 2023 essentially equal to 2022,” said BAGI CEO Steve Lains. “We know that permit data acts as a lagging indicator, reflecting market conditions from four to six months prior, so permit numbers for the end of last year reflect an increase in demand during the beginning of the year that we anticipate will carry over into 2024. Based on the growth patterns we saw towards the end of the year, BAGI is optimistic about the forecast for 2024 and confident in our members’ ability to weather volatile market conditions. No matter what happens in the coming months, BAGI will be there for our members, providing advocacy, support, and opportunities for networking and continued professional growth.” 

Permit Breakdown by County: 

County        2022 Permits (Jan-Dec) 2023 Permits (Jan-Dec)
Boone County         730 857
Hamilton County         2378 2719
Hancock County         935 546
Hendricks County         962 982
Johnson County         774 596
Madison County         523 463
Marion County         1287 1414
Morgan County         289 294
Shelby County         125 73

For further information and access to the full December 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 317-436-8499 ext. 701 or kristenh@thecaway.com.