The Indianapolis area saw its second straight monthly drop in single-family building permit filings in September, a sign that the central Indiana residential construction market might be cooling off after a prolonged hot streak.
Builders in the nine-county Indianapolis area filed 744 single-family building permits during the month, down 9% from September 2020, when 819 permits were filed, according to the latest numbers from the Builders Association of Greater Indianapolis.
Monthly permit filings in the area had risen for 14 straight months on a year-over-year basis prior to August. Filings have fallen in just in three of the past 22 months.
Despite the monthly decline, permit filings are still on pace to have their biggest year since 2005.
So far this year, 8,039 permits have been filed in the area, up 28% over the first nine months of 2020.
“After a year and a half, we’re beginning to see the market return to a more normal demand,” Steve Lains, CEO of the Builders Association of Greater Indianapolis, said in written comments. “However, our industry continues to feel the effects of the ongoing supply chain issues, which aids in the decrease of building activity. These challenges will continue into 2022.”
County by county
– In Marion County, permit filings fell 15%, from 110 in September 2020 to 94 last month.
– New-home hotbed Hamilton County saw 239 filings last month, a year-over-year decrease of 23%.
– Hancock County saw permits rise 22%, to 118.
– Hendricks County’s numbers were flat in August, at 107.
– Johnson County saw 85 filings in September, the same as in August.
– Filings were flat in Boone County, at 53.
– Madison County filings decreased 50%, to 42.
– Morgan County filings rose from 36 to 55, an increase of 53%.
– Filings dropped from eight to six in Shelby County.