The start of new home construction near Indianapolis could surpass 9,000 units

Being the highest figure since 2021, new home construction is booming in the Indianapolis metropolitan area, especially in Plainfield and its neighborhood known as Hobbs Station, a growing neighborhood with homes already built and others still under construction, adding to the nearly 9,000 new single-family homes in Indiana.

According to the latest permit data from the Builders Association of Greater Indianapolis (BAGI), across nine counties in central Indiana, there were 6,730 single-family homes under construction, a figure that includes condominiums and townhomes, 27% higher than in the same period in 2023.

The MarketGraphics Research Group predicts that the total number of permits will exceed 9,000 by the end of the year, making 2024 the strongest year for new home construction since 2021.

Many experts believe that with the recent half-percentage-point reduction in interest rates by the Federal Reserve, favorable economic conditions, and strong demand could lead to a much-needed increase in home construction. One of these experts is Drake Branda, BAGI’s Chief Operating Officer, who says: “Lower interest rates are definitely helping the market, and builders and developers are optimistic about the demand for new homes.”

Another expert in the area, Jerrod Klein, Vice President of Sales at Taylor Morrison, noted that his company and others are responding to demand by increasing the number of model homes, that is, move-in-ready homes built without buyer customization. He says: “Indianapolis is still recognized as one of the most affordable housing markets in the country. We are seeing strong demand from buyers who are relocating and don’t have time to build from scratch.”

But despite the new supply, affordability challenges persist to some extent, with the median home price in central Indiana increasing by nearly 40% since August 2020, with prices exceeding $300,000. Many experts also believe that demand will continue to outpace supply, keeping prices high.

This issue is largely due to builders facing multiple challenges in keeping costs low, as rising land prices and development expenses make it difficult to produce affordable homes for the average buyer.

On the other hand, while new home construction is on the rise, foreclosure rates remain a concern in the region.

Available foreclosures:

Hamilton County: 45 homes available

Marion County: 120 homes available

Hendricks County: 30 homes available

Boone County: 25 homes available

Hancock County: 20 homes available

Johnson County: 35 homes available

Madison County: 50 homes available

Morgan County: 15 homes available

Shelby County: 10 homes available

By Elías DaSilva | 04 de diciembre de 2024