In a bustling state like Indiana, the dream of owning a home is becoming increasingly elusive for many. The soaring housing costs are not only affecting individuals but also stifling the growth of communities across the state. As a coalition of business groups and trade associations, Build Indiana Roots understands the importance of addressing these challenges head-on.

Economics 101: Supply Versus Demand and the Indiana Housing Market Trends

As we discussed in another of our recent posts, it’s important to remember that many elements affect both the price of homes and the number of individuals looking to buy. Right now, the demand is high and the supply is low. New supply would help, but if we look at the number of residential permits pulled in 2023, we see that there isn’t going to be enough supply to meet the demand.

The correlation between building permits and Indiana housing market trends becomes evident when analyzing Indiana’s housing market trends. Despite steady economic growth, the lack of new construction fails to accommodate the increasing population and demand for homeownership opportunities in Indiana. This imbalance contributes to the persistent affordability crisis, hindering a community’s ability to thrive.

Analyzing the Numbers: Building Permits and Indiana’s Housing Deficit

According to Dustin Grove of WTHR, The Builders Association of Greater Indianapolis (BAGI) CEO Steve Lains reported that the nine-county metro area witnessed a steady rate of about 8,000 permits in 2023, mirroring the figures from the previous year. However, this seemingly stable number fails to meet the growing demand for more housing units, particularly in the $200,000–$350,000 price range, which Lains says caters to first-time homebuyers and individuals seeking to upgrade. He revealed a staggering deficit of approximately 60,000 houses in the market and emphasized that the 8,000 permits pulled simply weren’t enough. The demand, largely driven by millennial buyers, remains unmet due to insufficient supply over the past decade, and at the current rate, it will continue to be a problem.

Empowering Hoosiers for Homeownership

To address these challenges, Build Indiana Roots advocates for responsible, balanced housing policies. By educating Hoosiers on homeownership opportunities in Indiana, the coalition aims to empower residents to fulfill their home buying dreams. From promoting government programs and incentives to encouraging private-sector involvement, every effort is crucial in bridging the gap between supply and demand in Indiana’s housing market.

Buying a House in Indiana

For those contemplating buying a house in Indiana, understanding the dynamics of the housing market is paramount. With careful consideration of affordability, market trends, and available resources, individuals can navigate the homebuying process more effectively. Whether it’s exploring financing options or leveraging local assistance programs, taking proactive steps can make homeownership a reality for many Hoosiers.

In conclusion, the link between building permits and housing deficits in Indiana underscores the urgency of addressing affordability challenges in Indiana. By recognizing the importance of balanced housing policies and fostering collaboration between stakeholders, we can pave the way for a more inclusive and vibrant community where all residents can thrive. Let’s work together to build a brighter future for Indiana.