New-home applications in central Indiana see May surge

Applications for new homes surged for the second straight month in central Indiana in May, according to the latest statistics from the Builders Association of Greater Indianapolis, or BAGI.

Builders filed 987 single-family building permits in the nine-county area last month, an increase of 15% compared with the same month of 2024, BAGI said.

Filings have increased in three of the first five months of 2025 on a year-over-year basis following a streak of 20 straight months of rising applications.

So far in 2025, 4,238 permits have been filed overall in the area, up 4% from the 4,076 that were filed in the first five months of 2024.

“May’s numbers underscore the strength and resilience of central Indiana’s housing market,” said Chris Hancock, CEO of BAGI, in written comments. “Builders are taking a strategic, informed approach—aligning with shifting buyer expectations and broader economic trends. Our region remains a desirable destination for homebuyers, and we expect that demand to hold steady through the remainder of the year.”

Typical home-construction hotbed Hamilton County saw a big decline in permit activity last month for the third month in a row, but Marion, Hendricks, Johnson and Hancock experienced significant increases (see county-by-county numbers below).

National outlook

The National Association of Home Builders said elevated interest rates and economic uncertainty sent more home buyers to the sidelines in May.

Sales of newly built single-family homes declined 13.7% in May, back to a seasonally adjusted annual rate of 623,000. It was the slowest pace since October of last year.

County-by-county filings

May single-family building permit filings by county and year-over-year change:

Hamilton: 286 (-10%)

Marion: 184 (+39%)

Hendricks: 140 (+43%)

Hancock: 101 (+13%)

Johnson: 84 (+32%)

Boone: 72 (-1%)

Madison: 48 (+14%)

Morgan 41 (+71%)

Shelby 20 (+186%)