The U.S. Census Bureau recently released statewide totals for building permits issued in January and shows 783 single-family permits were pulled. The 783 permits pulled in January of 2023 are down 49 percent from the 1,539 permits pulled in January 2022. This number is down 3 percent from December of 2022, when 805 permits were pulled.
“The sharp decline is largely due to 30-year mortgage rates rising from 3 percent in January 2022 to current rates of 7 percent, making it significantly more expensive for Indiana buyers to purchase a home,” Indiana Builders Association President Ric Zehr said. “Despite the decrease in building permits, Indiana’s housing market remains strong due to a deficit of almost 50,000 housing units across the state. This supply shortage means that there is still a high demand for housing, and the industry is expected to continue to thrive. Indiana builders and developers remain optimistic despite the challenges posed by rising costs. With a focus on affordability, the industry is working to bring more housing to the market while at the same time, exploring alternative home designs with the goal of creating affordable housing options for Indiana residents.”
About the Indiana Builders Association
The Indiana Builders Association (IBA) is a statewide trade organization representing Indiana’s home building, remodeling, and light commercial construction industry. Established in 1952, IBA has 21 local affiliates across Indiana and is associated with the National Association of Home Builders in Washington, D.C. IBA educates and advocates for the construction industry to positively impact legislative, regulatory, and legal issues that affect housing affordability. More information can be found at BuildIndiana.org.