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.


Post a comment to this story

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

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!