IBJNews

New-home construction off to mild start

Back to TopCommentsE-mailPrintBookmark and Share

Just like the winter, new-home construction got off to a mild start this year.

Building permits filed in the nine-county metropolitan area totaled 194 in January, a 2-percent dip from the same time last year. To put the number in perspective, 288 permits were filed in January 2010.

Even so, industry leaders are cautiously optimistic that new-home construction will continue to improve throughout the year.

Steve Lains, CEO of the Builders Association of Greater Indianapolis, said building-permit filings typically lag new-home sales, which seem to be on the rebound.

“What I’ve heard in the marketplace is that sales are high,” he said. “Traffic is better than it has been in past Januarys, and you’re probably going to see permit numbers improve in the next month or two.”

Recent sales figures for existing homes seem to show that the housing market indeed is improving.

Home-sale agreements in the nine-county region rose 13.4 percent in January compared with the same month a year earlier. And actual sales of existing homes shot up 28 percent in the area last month from the previous January, according to the Metropolitan Indianapolis Board of Realtors.

Reasons cited for the rosier results include lower unemployment, increased consumer confidence and historically low mortgage rates. To what extent high gas prices will factor into economic conditions remains to be seen.

This year could mark a turning point for the home-building industry. New-home construction in the area slid in 2011, marking six straight year-over-year declines in residential building activity. Further, the number of homes built in the metro area last year was the smallest since the residential market began slumping six years ago.

“We’re all cautiously optimistic,” Lains said. "We haven’t seen enough of a long-term trend, but in the third to fourth quarter I started feeling and hearing [positive] things on a regular basis. I’m really hearing it consistently now.”

Last month, Hamilton County registered 76 building permits, the most of the nine metro-area counties. But that still paled in comparison to the 90 filed in January 2010.

In Marion County, builders filed just 25 permits in January, a 17-percent decline from the same time last year.

Boone County was the only other county besides Hamilton to outperform Marion in terms of building permits filings. Boone County logged 27 last month, a 50-percent increase from the previous January.
 

ADVERTISEMENT

  • Suck it!
    Has Beazer Homes gone bankrupt yet?! They suck, hope they go under soon!!
  • more information
    It would also be illuminating to give up details on the type of builders and dollar estimate for the construction of the units. It would give us a better perspective on what is driving the market.
  • Hey Scott,
    Is this actually the number of building permits, or is this the number of housing units for which permits have been issued? I presume it's the latter, but that clarification would be helpful.

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. Angela IS the best RD

  2. We are a nation of speed. All of our younger lives are filled with deadlines, quotas and bottom lines. We start to ease out of the pressured rat-race when we finally see "retirement." The most enjoyable travel on the planet is passenger rail service. Indy to Chicago does not beat Megabus or Southwest Airlines in speed. Passenger rail however has the best seating, mammoth legroon, seat backs that recline to more than 45 degrees and employers that really want you to return as a customer. Indiana municipalities need to maintain subsidies to support this transportation mode. Losing it is loss for all of us.

  3. Good day! I just want to testify how i got my loan from Mr. Eric Lefkofsky after i applied several times from various loan lenders who claimed to also testify right in this forum,i thought the testimonies where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan. Until a friend of mine introduce me to this popular Mr. Eric Lefkofsky who promised to help me and indeed he did as he promised without any form of delay. I never thought there are still reliable loan lenders until i met Mr. Eric lefkofsky who indeed helped me with the loan and changed my belief. I promised to share this testimony after I got my loan. I don't know if you are in any way in need of a genuine and urgent loan,free feel to contact Mr. Eric Lefkofsky via their email{grouponfunding@hotmail.com}

  4. Its a THUG issue. Bleecker Street and NYX are thug bars. They attract thugs of all races. Places that attract thugs need to be kicked out of Broad Ripple. Ain't nobody got time for that!

  5. Hello everyone, My name is Marian Gareth, I am from the Texas, United State, am here to testify of how i got my loan from Mr Andre Frank {frankloancompany@yahoo.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mr Andre Frank the C.E.O of Andre Frank Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mr Andre Frank, who really help me with my loan and changed my lief for better. I don't know if you are in need of an urgent loan, free feel to contact Mr Andre Frank on his email{ Frankloancompany@yahoo.com} for help

ADVERTISEMENT