Applications for new homes continue to surge in central Indiana

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Central Indiana residential builders are on pace to have one of their busiest years since the homebuilding boom that took place before the Great Recession.

Through the first three quarters of 2024, 7,757 single-family building permits have been filed in the nine-county area, according to the latest statistics from the Builders Association of Greater Indianapolis, or BAGI. That’s up 26% from the same nine months of 2023.

Area builders aren’t likely to top the 10,430 filings made 2021—their busiest year since 2005—but they could make a run at it if they finish the year with three strong months.

Builders filed 935 permits last month, an increase of 10% compared with September 2023. They will need to come close to that number each month for the rest of the year to top 2021’s overall number. Permit filings have risen on a year-over-year basis for 15 straight months.

During the years surrounding the turn of the century, annual single-family permit filings in the area routinely topped 10,000 and even exceeded 15,000 in 2001. But that changed dramatically after the Great Recession, with filings dropping to as low as 3,625 in 2009.

Steve Lains, CEO of BAGI, said demand is now strong enough in the area to support even more construction, but the industry faces obstacles.

“We are thrilled to see such a positive trend in new home construction,” he said in written remarks. “The 10% increase in permits is a strong indicator of the continued health and resilience of Indiana’s housing market. Our builders are responding to a clear demand for new homes, but supply constraints are hindering our ability to meet that demand. That includes government regulation entitlements, materials, and land availability. Supply is still the issue.”

September single-family building permits filings by county and year-over-year change:

Hamilton: 233 (-1%)

Marion: 220 (+46%)

Boone: 68 (+15%)

Hendricks 77 (-29%)

Hancock: 100 (+28%)

Johnson: 157 (+52%)

Madison: 36 (-42%)

Morgan 32 (-11%)

Shelby: 12 (-25%)

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