Homebuilders in central Indiana kicked off 2026 on solid footing as applications for new homes in January stepped up 4% on a year-over-year basis, according to the latest statistics from the Builders Association of Greater Indianapolis.
Builders filed 731 single-family building permits in the nine-county area in January, up from 700 filed in January 2025, BAGI said.
The increase marked the second consecutive month that permit filings were greater in the Indy area than in the same month the previous year. In December, filings surged by 14.1% over the last month of 2024, breaking a four-month losing streak.
The modest increase in January indicates that the Indy-area homebuilding market is maintaining forward momentum while weathering ongoing economic headwinds, BAGI said in a press release.
“Builders are entering the year with a disciplined approach — carefully managing production, aligning with buyer demand and responding thoughtfully to evolving market conditions,” BAGI CEO Chris Hancock said.
“Compared to national trends, central Indiana continues to demonstrate stability and measured growth,” Hancock added. “Those fundamentals provide confidence as builders and buyers move further into 2026.”
The National Association of Home Builders reported in February that 2025 single-family permits for the United States totaled 909,600, down 7.4% from 2024. In central Indiana, single family permits in 2025 topped out at 10,173 permits, a 1.3% increase from 10,004 in 2024.
According to NAHB, challenges for homebuyers in 2026 include affordability, as the rise in home prices has far outstripped the rise in median household income. Also affecting demand: The percentage of married couples with children is decreasing.
The median age for first-time buyers reached a record high of 40 in 2025 from 29 in 1981, NAHB reported last month.
In January, five of the nine counties in the Indy area saw increases in filings (see county-by-county results below).
Of the counties that tallied at least 50 filings in January, Boone County saw the largest increase on a percentage basis, at 33%. Of the traditional housing hotbeds, Hamilton County recorded an 8% increase, while Marion County slid 4%.