Local Homebuilder Association Sees Permit Activity Rise in Central Indiana
INDIANAPOLIS (July 21, 2023) – The Builders Association of Greater Indianapolis (BAGI) has released its June permit breakdown, showing just a two percent decrease across the nine-county area from June 2022 and aligning with the rebound in consumer interest and purchases seen at the end of 2022.
BAGI CEO Steve Lains explained that permits act as a lagging indicator of building market activity, reflecting conditions four to six months prior.
“June’s numbers reflect the higher level of sales and interest in new home building that we started the see six months ago,” Lains said. “We should continue to see an uptick in permit activity in the coming months which may surpass pre-pandemic levels seen in 2019.”
The most notable permit growth seen in Central Indiana was in Madison County, with 62 permits issued last month compared to the 20 issued in June 2022, which is a 210% increase. Boone County saw a 125 percent increase, with 117 permits issued in June 2023 compared to 52 this last year.
Lains added that industry professionals remain confident and builder sentiment is positive, but recent discussions have given individuals caution.
“We have already seen positive effects from last month’s pause on interest rate hikes, but news of potential rate increases in the near future, coupled with ongoing construction delays and rising costs, cause hesitation,” Lains said. “Despite this, BAGI and our local industry leaders foresee strong consumer demand and a healthy new home construction market 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.
Permit Breakdown by County:
|County||2022 Permits (Jan-June)||2023 Permits (Jan-June)|
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