Central Ind. housing market slumps, may improve with time

The construction of new homes in central Indiana showed minimal improvement last year, marking the worst year for local home building in more than 25 years, according to the Builders Association of Greater Indianapolis.

Home construction permits fell five percent last year, from 279 in December 2009 to 265 in December 2010.

In Hamilton County, central Indiana’s most attractive area for new homes during the last decade, permits declined by one percent, to 1,354, in 2010.

Marion County’s building permit numbers reduced from 772 to 729 in 2010. This is a very large drop in construction permits from 2005, when more than 3,600 permits were filed within the county.

Single-family homes represent nearly 80 percent of the national housing market, but demand for this type of housing fell nine percent, while demand for apartment housing improved by 17.9 percent nationally.

In December, construction numbers dropped 38.4 percent in the Midwest, likely due to severe winter weather.

But the housing market could improve, as builders throughout the nation plan to put up more buildings in 2011. Construction permits rose 16.7 percent in December 2010, the highest since March 2010.

­—Amanda Jacobson