Homebuilding Industry Remains Strong Despite Permit Decline
INDIANAPOLIS (September 21, 2022) – The Builders Association of Greater Indianapolis (BAGI) continues to see a regression in homebuilding permit activity this summer, with 603 permits issued last month compared to 756 in August of 2021.
Central Indiana permits down 14 percent year-over-year.
Despite the lower permit numbers, local homebuilders and suppliers remain busier than ever completing previously sold homes and remain optimistic with the “slowdown” seen in the home industry, according to Steve Lains, CEO of the Builders Association of Greater Indianapolis in the association’s recent State of the Industry letter.
“Although the pace at which this slow-down occurred is surprising, a housing slowdown itself is not shocking given the inflation, fluctuating record-high fuel prices and rising mortgage rates, coupled with the unprecedented rate of growth that occurred in the housing market over the last 24 months,” Lains said.
Despite these low numbers,a few counties did see an increase in permits in August, including Madison, Morgan and Shelby County. Marion County had a 110% increase, with 65 issued last month compared to 31 in August 2021.
And while August’s permit numbers reflect the recent trend of declining permit in more than half of Central Indiana’s counties, it is not alarming to Lains and other industry leaders.
“We remain confident that this slowdown is not a recession, but a correction – a change in the market that will see price growth slowing, a continued stable supply of new homes, and increased product/labor availabilities,”Lains said.
Permit Breakdown by County:
|County||2021 Permits (Jan – August)||2022 Permits (Jan – August)|
To reference the latest State of the Industry letter, visit BAGI’s website.
The Builders Association of Greater Indianapolis is a professional trade association representing residential homebuilders, associates, and remodelers. For more information, call 317-527-6774; orvisit www.BAGI.com/permits/ for permits numbers from 2000-2022.