With Fewer Lots, Building Permits Drop
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The latest data from the Builders Association of Greater Indianapolis shows the number of single-family building permits in central Indiana has dropped 17% from a year earlier. BAGI says the drop is the result of limited lot inventory.
Last month, 933 permits were issued compared to 1,127 in March 2021.
“Lower year-to-date permit numbers are a direct result of a developed lot shortage,” said Jerrod Klein, vice president of sales and marketing for Carmel-based Pyatt Builders. “In addition, builders now find themselves in the unusual position of being forced to pace home starts within an unprecedented lack of labor and supply availability.”
BAGI says demand for new homes continues to be greater than builders can satisfy, and this demand is escalated by historically low levels of existing homes available on the market.
While the nine-country central Indiana region saw an overall decrease, several counties saw an uptick in permit numbers from last year’s totals, including Hancock, Madison, and Morgan County. BAGI says Morgan County saw a 42% increase with 27 permits issued last month compared to 19 in March 2021.
