The Builders Association of Greater Indianapolis says home construction in central Indiana is starting off strong in 2021, following a strong close to 2020. So strong, according to the association, that demand is outweighing the ability to build.
BAGI says single-family building permits are up 45% from January 2020 in the nine-county area surrounding Indianapolis. During the first month of this year, 772 permits were issued, compared to 534 during the same period a year ago.
“The demand for new homes has accelerated into 2021,” says Steve Lains, BAGI chief executive officer. “In fact, home demand has surpassed production capacity.
Lains says while the trade association is encouraged by the enthusiasm in the new home market, meeting this increasing demand will require a resetting of expectations for both the builders and homebuyers.
“We empathize with today’s homebuyers and know it can be frustrating to navigate this market in light of those challenges,” said Lains. “We ask that prospective homebuyers stay patient as we work to deliver the quality homes you want as efficiently as we are able under these circumstances.”
BAGI says in addition to longer wait times, costs for supplies and labor continue to rise.
Of the 772 permits issued in January, nearly half are in Hamilton county.