The Builders Association of Greater Indianapolis says single-family building permits increased by 2 percent in October. The organization says 563 permits were issued in the nine-county region last month, up from 550 during the same month last year.
Six of the nine counties saw decreases in permits in October with Hancock and Hendricks counties leading the way at 39 percent and 22 percent, respectively. Morgan County saw the biggest increase in permits at 47 percent.
"While we are not worried about the pace of permits currently, we are definitely continuing to see an affordability issue that we believe is the primary cause for last month’s stalling," said Steve Lains, chief executive officer of the BAGI. "Between rising mortgage rates, continued labor and lot shortages, and the high costs of lumber and other materials, it is difficult for homebuilders to provide the type of product that much of our market demands."
The National Association of Home Builders/Wells Fargo Housing Market Index fell 8 points to 60 last month. The BAGI cites a report from CNBC that says the index is at its lowest since August 2016, though any number above 50 suggests sentiment among home builders is positive.