INDIANAPOLIS- New home construction permits in the greater Indianapolis are down 4% from February 2024 to February 2025, that’s according to a report from the Builders Association of Great Indianapolis. BAGI says it reflects broader market conditions influenced by economic uncertainty, interest rate stagnation and shifting consumer confidence.
According to the report, 662 permits were issued across Central Indiana in February, compared to 693 last year.
Here’s a breakdown by County:
Dan Hayes with AR Home says there’s been a softening in the market over the last two years. They deal with luxury homes, but are starting to see some of the impacts of an uncertain market. Hayes has been keeping on eye on tariffs, supply chain, and changes in the market. He also says its hard to find skilled laborers to do the work.
“My experience in every election cycle is we always have a tightening up. People hold on to things a little bit more wanting to see what’s going to happen, regardless of where you fall on the political spectrum, there’s always an anxiety around that not knowing what things will look like,” said Hayes.
Hayes says he’s getting price increase notifications daily from suppliers whether that be on steel, lumber or appliances. He’s also had to make adjustments to clients' contracts saying if tariffs increase by a certain percent so will the price to build.
“Right now it’s kind of a check in period. It’s not going to be anything like it was in 08-09, we’re not worried in that regard at all. I don’t even think we’re worried, I think we’re optimistic about where things are moving forward but right now certainly it’s a little bit challenging times,” said Hayes.
Hayes says Indy still remains the second hottest housing market in the country and they are seeing people move here from out of state looking to build homes.
For more information on the February report you can visit this link.
