Posted in Indianapolis Market | Posted on 02-20-2014 | Written by Metrostudy News
(Indianapolis, IN –February 20, 2014) There are many positive signs today that the new home market is well under way in the recovery process. This is according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
Including single-family detached units, townhouse units and duplex units in the six county Indianapolis region, there were a total of 4,492 new units started in the twelve month period ending with 4Q13, an increase of 23.4% compared to the previous year. The 1,011 units started in 4Q13 of this year represents an increase of 14.8% over the 4Q12 starts total. The annual rate of closings also rose in 4Q13. There were 4,242 closings during the twelve month period ending with 4Q13. This represents a 17.3% increase in the number of annual closings compared to the prior year. The fourth quarter number of 1,178 closings is up 6.7% compared to the 4Q12 total of 1,104 closings. “With continued positive job growth and expected declines in the unemployment rate, Metrostudy expects steady growth in the housing market to continue through 2014 and beyond” said Chris Huecksteadt, Regional Director of Metrostudy’s Indianapolis Market.
The supply of finished and vacant inventory fell to 1.6 months overall, the lowest level of supply since the start of the downturn in the housing market. “Finished and vacant inventory has steadily fallen in the overall market, leading to the need for new home construction as demand begins to grow. Levels of new home supply are low in nearly all of the counties that make up the Indianapolis market,” said Huecksteadt.
New lot development has begun to occur at levels not seen for several years. There were 2,101 new lots delivered in the 2013 (2,648 in calendar year 2012). Lot deliveries in 2012 were the most in a year since 2006. Of course, the location and pricing of some of the existing lot inventory will limit those lot’s ability to be absorbed moving forward.
“Metrostudy expects from 5,000 to 5,500 new home starts in 2014. Growth is expected to continue through this year, with another 20% to 25% bump in new home construction expected the following year. Of course, this forecast is heavily dependent upon continued positive news on the jobs front,” said Huecksteadt.
Metrostudy is the leading provider of primary and secondary market information to the housing and related industries nationwide. Metrostudy provides research, data, analytics and consulting services to help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. For more information, visit www.metrostudy.com
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