The Builders Association of Greater Indianapolis says March single-family building permits in its nine-county area held steady, compared to the same month the previous year. Chief Executive Officer Steve Lains says he anticipates several factors causing supply issues that could keep the industry from meeting expected demand. April 16, 2015
INDIANAPOLIS, Ind. – Local new construction large-volume builders in the Indianapolis area are still experiencing record-breaking sales as the weather breaks and pent-up demand from the recession years continues to accelerate. Building permit reports indicate that in the Greater Indianapolis Nine-County area, Single-Family Building Permits remained steady compared to 2014 numbers year-to-date. In March 2015, there was 1,138 new home permits issued compared to 1,139 in 2014.
Market analysts are still predicting a 10 percent increase in permit activity in 2015. “Traffic numbers through our models continue to improve and we are excited to report a 24 percent increase in our first quarter sales over the same period in 2014,” says Jerrod Klein, Vice President, M/I Homes. “The existing home market is strong, which is contributing to buyers being able to sell their current homes quickly and make the move to a brand new home reflecting the features and energy efficiency they are looking for,” says Klein.
“As the energy in the market continues to rise we anticipate supply issues with labor, materials, land and increasing government regulations that could be potential factors keeping the industry from meeting the increasing consumer demand,” says Steve Lains, CEO of the Builders Association of Greater Indianapolis. “If a consumer is thinking of building a new home, now is the time to act. BAGI's Model Home Mania runs through the weekend to help consumers find their new home by simply visiting BAGI.com to start their search,” says Lains.
In the Greater Indianapolis Nine-County region, the permits issued in March 2015 have created a total economic impact of $203,797,368 in local income, $46,265,376 in local taxes, and 3,450 local jobs (see chart below).
County Total Permits Local Income Local Taxes Local Jobs
Boone 114 $20,415,554 4,634,669 346
Hamilton 419 $75,036,114 1,7034,440 1,270
Hancock 79 $14,147,620 3,211,744 240
Hendricks 157 $28,116,157 6,382,833 476
Johnson 121 $21,669,140 4,919,254 367
Madison 13 $2,328,089 528,515 39
Marion 211 $37,786,682 8,578,202 640
Morgan 14 $2,507,173 569,170 42
Shelby 10 $1,790,838 406,550 30
Totals: 1,138 $203,797,368 $46,265,376 3,450
The Builders Association of Greater Indianapolis is a professional trade association representing residential homebuilders, associates and remodelers. For more information call 317-236-6330; or visit www.BAGI.com for permits from 2000-2015.
Source: Builders Association of Greater Indianapolis