Homebuilder Confidence on the Rise About Current Housing Market

INDIANAPOLIS (February 22, 2023) – The Builders Association of Greater Indianapolis (BAGI) has shared the first permit numbers for 2023, showing that Central Indiana’s nine-county area saw a 41% decrease in single-family building permits, with 389 permits in January 2022 compared to 662 permits last year.

Although the decrease in permit numbers has continued into the new year, builder optimism is strengthening. In fact, the National Association of Home Builders reports that builder confidence in the market rose seven points to 43 — the strongest reading NAHB has recorded since September 2022.

“This is the second month we have seen a rise in builder confidence across the country,” Steven Lains, BAGI CEO said. “Current builder sentiment is a positive sign and, coupled with stabilizing mortgage rates, signals a strong housing market moving forward.”

Lains continued that despite ongoing issues with supply and labor shortages, now is still an ideal time for Hoosiers to achieve their dreams of becoming homeowners.

While overall permit numbers for the Central Indiana area were lower, Boone County saw a 35% increase in permit activity, with 84 permits issued last month compared to 62 issued in January 2022.