The number of single-family building permits for central Indiana in March surged 66% from the same period a year ago, according to the Builders Association of Greater Indianapolis. The trade association says while the number reflects a continuing trend of new home construction, the number pales compared to the skyrocketing cost of building materials.
BAGI says the cost of framing lumber composite has increased by 317% last week compared to this time last year according to a national lumber report.
“These increases are being felt by both the builders and consumers as the scramble persists in an attempt to meet the market demand,” said Steve Lains, BAGI chief executive officer.
BAGI says more than 1,110 permits were issued in the nine-county area, compared to 680 in March of 2020. The organization says there has been a 48% increase in the first quarter, year over year.
“Market demand has not shown signs of wavering,” said Lains. “Consumers continue to sell their current homes for more money and with less time on the market. Record low-interest rates continue to be a driver for people to buy now, despite the cost increases with new construction.”
BAGI says Morgan County posted a deficit in March, but Marion County saw an 80% increase.