Homebuilding slowdown trend continues
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As the year winds down, home building in central Indiana continues to slow down. The Builders Association of Greater Indianapolis says it continues to see a regression in homebuilding permit activity, with a 21% drop year-over-year.
BAGI says there were 7,607 single family building permits from January to November, compared to 9,598 permits issued in the same period last year.
The organization says despite the decrease in permit activity, builders continue to stay busy and remain optimistic heading into the New Year.
“As an association, we’ve been expecting construction home sales to slow by 25 percent through the end of 2022, especially with the recent interest rate increases,” said BAGI CEO Steve Lains. “This has given our builders and vendors the chance to get caught up on delayed materials and complete existing new home projects.”
Lains says despite decreased permit activity and continued battles with supply chain slowdowns, labor shortages, price inflation and a lack of land availability, local homebuilders and suppliers remain busy as they complete projects throughout the Central Indiana area.
Hamilton saw a more than 800-permit decline from last year, dropping from 3,076 YTD to 2,262 YTD.
“The market is starting to become more balanced, we expect it to continue to correct itself in 2023,” Lains said.