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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCentral Indiana homebuilders are coming off their busiest year since 2005, but 2022 is starting out on a big downswing.
Builders in the nine-county Indianapolis area filed 636 single-family building permits in January, down 18% from January 2021. That’s the fourth month out of the last six that has experienced declining filings on a year-over-year basis.
Sales of new homes had been growing until recent months. Area builders made a total of 10,430 permit filings in 2021, the most in 16 years. But builders and potential buyers have been facing a number of headwinds that slowed momentum.
Supply-chain issues, inflation, labor shortages and a lack of affordable construction sites have boosted the cost of houses. And a recent rise in mortgage rates has further eroded affordability.
County numbers
– Marion County was among several counties that bucked the trend in January, with filings increasing from 62 a year ago to 81 last month.
– Hamilton County, typically a new-home hotbed, saw filings plummet 49% in January, from 341 to 175.
– Hendricks County’s numbers dropped 30% last month, to 88.
– Hancock County saw January permits jump 57%, to 96.
– Johnson County saw a 48% decrease last month, to 47.
– Filings rose 63% in Boone County last month, to 62.
– Madison County filings increased 50%, to 60.
– Morgan County filings jumped from 10 to 21.
– Filings ticked up from four to six in Shelby County.
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