IBJNews

Metro home-building activity sinks again in 2011

Back to TopCommentsE-mailPrintBookmark and Share

New-home construction in the Indianapolis area slid in 2011, marking six straight year-over-year declines in residential building activity.

But some industry experts are expressing optimism that the market could be ready to turn a corner. Last year's 3-percent decrease in building permits filed in the nine-county metropolitan area represented the smallest year-over-year drop since local home-building activity began to decline in 2006.

Steve Lains, CEO of the Builders Association of Greater Indianapolis, said he's more positive about 2012, particularly since last year’s building activity nearly matched that of 2010, when the sector received a huge lift from generous federal tax credits.

“The demand has come back maybe better than we anticipated,” he said. “Moving into 2012, there’s a lot of optimism about the marketplace.”

Still, the number of new homes built in the metro area last year was the smallest since the residential market began slumping six years ago.

In the nine-county area last year, the number of home-construction permits dropped to 3,614, about 62 percent fewer than in 2006 and a whopping 76 percent fewer than the 15,054 posted in 2001, the most active year for local home building in the new century.

The number of building permits filed in Marion County fell 17 percent, to 607 in 2011 from 729 in 2010. June was the most active month, when builders filed 85 permits.

Building in Marion County could increase in 2012, though, if plans by Columbus, Ohio-based M/I Homes to construct more houses in two developments are any indication.

The Metropolitan Development Commission’s division of planning is set on Wednesday afternoon to give the builder the go-ahead to plat 74 lots at the Marlin Meadows subdivision on the city’s southeast side and another 19 lots at the Rosswood subdivision on the far-east side.

M/I Homes is under contract to purchase property in Marlin Meadows on East Thompson Road from Indiana Bank & Trust Co., which repossessed the land from defunct builder Hansen & Horn Group Inc.

Hansen & Horn built 56 homes at the development before it went bankrupt in 2010, and M/I Homes ultimately could build the remainder at the 222-lot subdivision.

“We’re actually looking forward to 2012,” said Mark Connor, M/I Homes’ vice president of land acquisition. “We’re thinking the market is going to stay relatively flat. But we intend to be actively building in more neighborhoods than we did in 2011.”

M/I Homes is building in about 20 developments in the Indianapolis area and hopes to increase its activity by 30 percent to 40 percent from the roughly 200 building permits it filed in the area in 2011.

Lains at BAGI, meanwhile, expects new-home prices to increase in 2012 as builders deplete the inventory of unfinished developments left by bankrupt builders.

“Those discounted lots mostly are all gone,” he said. “Now you have builders developing new lots. Those new lots are going to be at a higher price.”

Overall, home builders were most active last year in Hamilton County, where they filed 1,413 permits, an uptick of 4 percent from 2010.

The number of permits filed in 2011 decreased 8 percent in Hendricks County but increased 7 percent in Johnson County. Boone County registered a slight 1-percent gain.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Hello Dear Are you tired of Seeking Loans and Mortgages,have you Been Turned down constantly By your banks and Other Financial Institutions or Micro Finance scheme. This is let you know with 100% guarantee that we Offer loans ranging from $1,000 Minimum to $1,000,000.00 Maximum at 3% interest rate per Month. We give out LOANS for developing business. a competitive edge/business expansion. email address: michealscottloan124@gmail.com We offer the following kinds of loans and many more; * Personal Loans ( Unsecured Loan) * Business Loans ( Unsecured Loan) * Consolidation Loan * Combination Loan * Home Improvement * Xmas Loans for contact to seek for loan email this email address: michealscottloan124@gmail.com Thanks

  2. My name is Mr Henry Josh and i live in the USA California and life is worth living right now for me and my family and all this is because of one man sent by GOD to help me and my family, i once had a life filled with sorrow because my first SON needed a kidney transplant and all our savings were going towards his medications and this normally leaves us with no money to pay our bills or even put enough food on our table and our rent was due and no funds to pay these bills and life felt so unfair to me and every night my wife will cry herself to sleep every night until one day, i was browsing through yahoo answers and i saw a striking advert of a man that gives out personal loans and that the offer is opened to all and i have heard so many things about internet scams but at this point of my life, i was very desperate and ready to take any risk and at the end of the day, i applied for this loan and from one step to another, i got my loan within 12 hours through bank transfer and you know, it was all like a dream and i called Mr Daniel Jones A Man who is the GOD sent lender i found and said, i have received my loan and he smiled stating that to GOD be the glory and i was so shocked as i have never ever seen anyone with such a GOD fearing and kind heart and today, i am the happiest man on earth because by GOD’S grace, my SON kidney transplant was successful and today he is healthy, i and my family are living very comfortable and happy and if you are in my former situation or in serious and legitimate need of a loan, you can reach this GOD sent lender via fidelityloanfirm@outlook.com

  3. Greetings to everyone reading this comment!!! I am Greg William by name. I am out here to recommend the effort of Mark Oscar,I was in need of a consolidation loan amount of 50,000 and as soon as I got in contact with Mark Oscar Loan Firm on Wednesday last week and on Friday last week as well I receive an alert from my bank(Royal Bank of Scotland Group) that the fund was transferred,I want everybody on this site to contact Mark Oscar now via email on how to get a loan because I got my loan from them and I am very happy,so contact them now. Oscarloanfinance@hotmail.com Thanks!!!!!!

  4. Elected officials, like Mourdock, get vested in 8 years. It takes 10 years for all other public employees, most of whom make a lot less money. So much for the promise to finish out his term.

  5. Great state treasurer and a good man!! Just curious if the folks who didn't quite understand his quote would like to tell my daughter-in-law that God didn't intend her! Mourdock's comment was correct but twisted and the article didn't mention that his opponent and the press let the impression stand that Mourdock meant that the rape was intended. Stupid people!!

ADVERTISEMENT