Applications for new homes rise for 14th straight month in central Indiana

Led by big surges in applications in Hancock and Johnson counties, demand for new homes in central Indiana continued to grow in August.

Residential builders in the nine-county area filed 949 single-family building permits during the month, up 20% compared with August 2023, according to the latest statistics from the Builders Association of Greater Indianapolis, or BAGI.

For the first eight months of 2024, permit filings were up 27% in the area compared with the same period of 2023, from 5,304 to 6,730.

Permit filings have risen on a year-over-year basis for 14 straight months.

Hancock County saw 130 permit filings in August, up from 50 a year ago. Filings are up 99% in the county on a year-to-date basis compared with the same eight months of 2023.

Meanwhile, Johnson County saw 121 permit filings in August, up from 51 a year ago. Filings are up 143% in the county on a year-to-date basis compared with the same eight months of 2023.

“The recent permit increases in central Indiana signal a healthy housing market.” Steve Lains, CEO of BAGI, said in written remarks. “Although home prices remain high, inflationary pressures are easing, and that’s a positive sign for builders and buyers. Interest rates are higher than many would prefer even amidst this recent decrease, but with inflation being tamed, we expect to see a stable, resilient housing market moving forward.”

Lains also said a limited supply of existing homes continues to drive demand for new construction.

“Many homeowners remain locked into low mortgage rates, reducing available inventory,” he said. “This has created a need for new homes, which is why construction continues to surge in central Indiana.”

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

Hamilton: 247 (-5%)

Marion: 243 (+31%)

Boone: 80 (-8%)

Hendricks 88 (+35%)

Hancock: 130 (+160%)

Johnson: 121 (+137%)

Madison: 9 (-82%)

Morgan 24 (-11%)

Shelby: 7 (-42%)