Local Homebuilder Association Reveals May Permit Breakdown by County
INDIANAPOLIS (June 22, 2023) – The Builders Association of Greater Indianapolis (BAGI) has announced the release of its May permit breakdown by county, offering valuable insights into the local housing market’s progress. And while the report shows permit activity is less than it was at this time last year, the association is optimistic.
BAGI CEO Steve Lains remains confident in the industry’s outlook as numbers continue to return to normal, pre-pandemic levels.
Lains explained that permits act as a lagging indicator, reflecting market conditions four to six months prior. “The initial five months of permit activity in 2023 demonstrate a slowdown resulting from a surge in interest rates, which hindered consumer purchases of new homes between August and October 2022. However, consumer interest and purchases rebounded in November 2022 and have remained strong through May. BAGI expects these sales to be reflected in permits throughout the year, potentially surpassing pre-pandemic levels seen in 2019.”
Lains’ sentiment is only strengthened by the recent announcement that the Federal Reserve was holding off on another interest rate hike — the first time since March 2022 — which the market has already seen positive effects from.
This pause on interest rate hikes, the increased builder confidence seen in the latest survey conducted by the National Association of Home Builders, along with a strong consumer demand create a favorable environment for new home construction for the foreseeable future.
BAGI, comprised of builders, developers, contractors, suppliers, and other professionals, plays a vital role in promoting, educating, and facilitating networking opportunities for the residential construction industry in the Greater Indianapolis area.
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For further information and access to the full May permit breakdown report, please visit the Builder’s Association of Greater Indianapolis website at www.bagi.com.
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 Kylee Kendall at 317-527-6774 or firstname.lastname@example.org