INDIANAPOLIS (July 24, 2024) – The Builders Association of Greater Indianapolis (BAGI) just released its June permit breakdown. Permits are up 29% year-over-year and demand remains strong.
The Builders Association of Greater Indianapolis (BAGI) reports another month of increased new single-family home permits for Central Indiana. While interest rates are not coming down and home price increases remain, the demand is still high.
Here’s why that matters:
National 30-Year Fixed Rate: 6.85%
National Unemployment Rate: 4.1% | Indiana’s Unemployment Rate: 3.8%
National Home Prices: Increase 5.8% in 2024
Mortgage Delinquency Rates: 2.45% in June, 2024
Steve Lains, CEO of BAGI, said, “Permit numbers in Central Indiana are indicative of a healthy market. Mortgage costs are still low in historical comparison. There’s record high home equity and a tight labor market. We’ve seen a smaller percentage increase in home prices in the past two years and a steady (although higher than we’d like) interest rate. All of these factors, in addition to the housing demand, point to a strong, balanced market.”
Housing supply remains very low. Lains said, “Low, locked-in interest rates have locked people into their homes creating less existing inventory on the market and with delinquency rates at historical lows there are few distressed property sales. The only answer to demand currently is new home construction which is why it continues to grow steadily.”
Additionally, the largest number of young adults, between the ages of 25 to 34, are looking to purchase housing. “This only reiterates demand is outpacing supply,” said Lains. “Unfortunately, this makes it more difficult for this demographic to purchase a home as availability and affordability become points of contention.”
Permit Breakdown by County:
| County | 2023 Permits (June) | 2024 Permits (June) |
|---|---|---|
| Boone County | 122 | 109 |
| Hamilton County | 274 | 257 |
| Hancock County | 50 | 87 |
| Hendricks County | 163 | 68 |
| Johnson County | 32 | 91 |
| Madison County | 62 | 36 |
| Marion County | 105 | 123 |
| Morgan County | 37 | 23 |
| Shelby County | 3 | 8 |
For further information and access to the full June 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 Amanda Parker at 317-527-6774 or amanda@thecaway.com.
