Indiana single-family permits fell 10% in July from June

Indiana issued 1,797 single-family building permits in July 2026, down from June but slightly above July 2025. The Indiana Builders Association says the numbers show steady housing demand and underscore the need to reduce costs and barriers to new home construction.

Why it matters: - Indiana’s July permit totals point to a cooling month-to-month pace, but continued year-over-year growth suggests underlying demand for new housing remains intact. - The data also show Indiana still trailing only Ohio in Midwest single-family activity, a sign the state remains a regional construction leader. - The Indiana Builders Association says more supply is still needed at all price points to improve affordability.

What happened: - The U.S. Census Bureau released statewide July building permit totals for Indiana on Sept. 2, 2026. - Indiana pulled 1,797 single-family permits in July 2026. - July permits were down 10% from 1,995 in June 2026. - July permits were up 2% from 1,766 in July 2025. - Indiana had 11,898 single-family permits in the first seven months of 2026, down 2% from 12,085 in the same period of 2025.

The details: - Indiana ranked second in the Midwest for single-family housing activity behind Ohio. - Ohio issued 1,864 single-family permits in July, ahead of Indiana’s 1,797. - Indiana outpaced Michigan, which posted 1,504 permits. - Indiana also outpaced Illinois, which posted 1,057 permits. - Indiana outpaced Kentucky, which posted 686 permits. - IBA President Marcy DeShong said July activity slowed from June, but the year-over-year gain and Indiana’s regional standing show demand for new housing remains strong. - DeShong said Indiana still needs more homes at all price points. - DeShong said regulatory costs and other barriers continue to make home construction more difficult. - DeShong said IBA will keep advocating for policies that support housing production and improve affordability.

Between the lines: - The monthly drop may reflect normal volatility in permit activity rather than a broader collapse in demand. - The year-to-date decline suggests 2026 is tracking slightly behind 2025, so builders may still be facing affordability and regulatory headwinds. - Indiana’s regional ranking gives the state leverage in arguing that policy changes could translate into more housing supply.

What's next: - IBA said it will continue pushing for policies that help more Hoosiers find homes that fit their needs. - Future permit reports will show whether Indiana can turn the July year-over-year gain into a sustained trend. - More detail is available in the association’s website.