Limited Lot Inventory, High Demand Continue Trend of Lower Permit Numbers
INDIANAPOLIS (April 21, 2022) – A limited quantity of available lots, ongoing supply issues, project backlog and a strong, continued demand for new homes has led the Builders Association of Greater Indianapolis (BAGI) to see a 17% decrease in single-family building permits in Central Indiana’s nine-county area.
933 permits were issued last month compared to 1127 in March 2021.
“Lower year-to-date permit numbers are a direct result of a developed lot shortage, Jerrod Klein, Vice President of Sales and Marketing for Pyatt Builders said. “In addition, builders now find themselves in the unusual position of being forced to pace home starts within an unprecedented lack of labor and supply availability. Demand for new homes continues to be greater than builders can satisfy, and this demand is escalated by historically low levels of existing homes available on the market.”
Steve Lains, CEO of BAGI, has been watching and discussing these ongoing trends with local builders and applauds their hard work and adaptability as they work through ongoing challenges and market needs. Lains encourages consumers to recognize that the new home construction industry is no different from the other economic sectors impacted by supply and labor shortages, and hopes they remain patient and understanding as they work with builders and other industry professionals to create their homes.
While Central Indiana saw an overall decrease, several counties saw an uptick in permit numbers from last year’s totals, including Hancock, Madison, and Morgan County. Morgan County saw a 42% increase with 27 permits issued last month compared to 19 in March 2021. The county has seen a 33% increase overall this year in 2022 permits issued compared to last year.
Morgan County saw a 42% increase in building permits from March 2021.
Permit Breakdown by County:
|County||2021 Permits (Jan – March)||2022 Permits (Jan – March)|
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.