Local Homebuilder Association Reveals April Permit Breakdown by County

INDIANAPOLIS (May 26, 2023) – The Builders Association of Greater Indianapolis (BAGI) today announced the release of its April permit breakdown by county, providing valuable insights into the local housing market’s progress. The report shows a steady return to pre-pandemic permit numbers.

While the April permit numbers exhibit a continued decrease in permits in year-over-year comparison to 2022, BAGI CEO Steve Lains remains hopeful about the industry’s prospects. Lains states, “The data from April indicates a resilient market that is gradually returning to pre-pandemic levels. We are optimistic that the construction industry will continue to rebound and grow at a steady rate throughout the rest of the year.”

Lains went on to describe that, “Permits are a 4-6 month lagging indicator of the current market conditions. The first 4 months of permit activity in 2023 reflect the market slowdown when interest rates increased sharply and stalled consumer purchases of new homes in August through October of 2022. Consumer interest and purchases returned in November of 2022 and have remained strong through May. We expect those sales to begin showing in permits through the remainder of the year bringing the permit level for 2023 back to, or even slightly above, the pre-pandemic levels of 2019.”
Another indicator of that increase in activity is through a Builder Confidence survey conducted monthly by the National Association of Home Builders which shows that builder’s sentiment is as strong in May 2023 as it was back in July 2022 before the market slowed.

That builder’s confidence reflects the fact that household formations, unemployment figures, and consumer demand remain strong. Those positive economic indicators, combined with the lack of supply of newly built homes, low existing home inventories, and the prospect of moderating mortgage rates set the stage for increasing new home construction for the remainder of 2023 and beyond.

With a membership comprising builders, developers, contractors, suppliers, and other professionals, BAGI plays a crucial role in promoting, educating and networking on behalf of the residential construction industry in the Greater Indianapolis area.