INDIANAPOLIS — Single-family homebuilding activity across Central Indiana remains ahead of last year’s pace through the first nine months of the year, despite a dip in monthly permit activity in September, according to the latest report from the Builders Association of Greater Indianapolis (BAGI).
The nine-county region recorded 737 single-family building permits in September 2026, marking a 14% year-over-year decline from the 857 permits issued in September 2025. However, total permits issued year-to-date reached 8,203, up 3% from 7,972 in the same period last year.
August Data Revisions Show Stronger Late-Summer Surge
The new report also included upward revisions to August permit totals in several municipalities, including Fortville, Danville, Trafalgar, and Lawrence.
August’s revised total of 1,012 permits, up from 890 in August 2025, increased that month’s year-over-year growth from a previously reported 7% to 14%. BAGI officials noted that the revisions underscore the importance of evaluating long-term trends rather than relying solely on single-month snapshots.
Local Market Resilience Amid National Headwinds
Central Indiana’s year-to-date growth stands in contrast to national trends. According to the National Association of Home Builders (NAHB), single-family permits nationwide fell 4% month-over-month in September and were down 4.8% compared to September 2025. National builder confidence also dropped to 29 in October—its lowest level since June 2012—as elevated mortgage rates, supply costs, and broader housing affordability concerns continue to press the national market.
“September’s numbers remind us that housing activity doesn’t move in a straight line,” said Chris Hancock, CEO of BAGI. “While we’ve seen some fluctuations throughout the year, Central Indiana remains ahead of last year’s overall pace. Builders are carefully evaluating market conditions and adjusting their approach as affordability and financing continue to influence purchasing decisions.”
September Permit Breakdown by County
Permit activity varied widely across Central Indiana’s nine counties in September:
| County | September 2026 Permits | September 2025 Permits |
| Boone County | 75 | 63 |
| Hamilton County | 228 | 306 |
| Hancock County | 35 | 110 |
| Hendricks County | 104 | 110 |
| Johnson County | 94 | 78 |
| Madison County | 7 | 46 |
| Marion County | 147 | 103 |
| Morgan County | 34 | 32 |
| Shelby County | 13 | 9 |
Hancock emphasized that local builders are staying adaptable as the industry navigates evolving market dynamics going into the final quarter of 2026.
“A single month’s results don’t tell the whole story, whether they show a decline or an increase,” Hancock added. “Our builders are navigating a market where demand, affordability, and construction costs don’t always align. Staying responsive to those conditions is essential to supporting the region’s long-term housing needs.”
For additional details and access to the complete permit breakdown report, visit the Builders Association of Greater Indianapolis online at BAGI.com/Permits.
