Economic Factors Offsetting Consumer Demand Continues Trend of Lower Permit Numbers
INDIANAPOLIS (June 17, 2022) –
The Builders Association of Greater Indianapolis (BAGI) has announced that in Central Indiana’s nine-county area, single-family building permits are down just 8% over May 2021, with 893 permits issued last month compared to 967 the year prior.
However, according to Drake Branda, Director of Government Affairs at BAGI, lower permit numbers are not reflective of the current market. In fact, consumer demand has and continues to keep the inventory of newly built and existing homes in Central Indiana at record lows, pointing to a positive purchasing market.
“Builders and developers throughout all our municipalities continue to overcome ongoing supply chain issues and a lack of lot development,” Branda said. “Interest rates and prices are not decreasing in our area as national media suggests, so now is the time to consider buying.”
Steve Lains, CEO of BAGI, has been watching and discussing the current market with local builders and is seeing a number of new projects pending approval or already underway that can provide more opportunities for consumers in the market. Lains wants consumers to know that builder confidence is high. Current demand combined with other economic factors like low unemployment, increasing wages and job creation will help bring even more balance to the market.
While overall permit numbers for the Central Indiana area were lower, Marion County saw an increase in permit activity, with 157 permits issued last month compared to 61 issued in May 2021.
Marion County saw a 157% increase in building permits from May 2021.
Permit Breakdown by County:
|County||2021 Permits (Jan – May)||2022 Permits (Jan – May)|
The Builders Association of Greater Indianapolis is a professional trade association representing residential homebuilders, associates, and remodelers. For more information, call 317-236-6330; or visit www.BAGI.com/permits/ for permits numbers from 2000-2022.