The latest data from the U.S. Census Bureau reveals a cooling trend in Indiana’s residential construction sector, with September’s permit numbers dropping sharply from the previous month—yet the state’s long-term standing remains robust.
Indiana saw 1,680 single-family building permits issued in September 2026, according to newly released statewide totals. That represents an 11% decline from the 1,891 permits pulled in August 2026, and a 6% drop compared to September 2025, when 1,792 permits were recorded.
Looking at the broader picture, the cumulative single-family permit count for the first nine months of 2026 stands at 15,470—just 1% below the 15,588 permits issued during the same period in 2025. This suggests that while monthly volatility exists, the overall pace of construction remains relatively stable year-over-year.
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“Although September saw a dip in single-family building permits, Indiana continues to be a strong market for residential construction, ranking ninth in the nation for single-family permits,” said Marcy DeShong, president of the Indiana Builders Association. “This ranking speaks to the strength of our home building industry and the work being done by builders across the state. As we head into the final months of 2026, we remain optimistic about the future of home building in Indiana and the opportunities ahead.”
Despite the monthly downturn, Indiana continues to outpace its Midwest neighbors in single-family housing activity. September’s 1,680 permits easily surpassed Ohio (1,449), Michigan (1,447), Illinois (818), and Kentucky (704), cementing the Hoosier State’s regional leadership.
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ABOUT IBA: The Indiana Builders Association (IBA) is a statewide trade organization representing Indiana’s home building, remodeling, and light commercial construction industry. Established in 1952, IBA has 20 local affiliates across Indiana and is associated with the National Association of Home Builders in Washington, D.C. IBA educates and advocates for the construction industry to positively impact legislative, regulatory, and legal issues that affect housing affordability. More information can be found at www.buildindiana.org.
Jenna Blackwell
Indiana Builders Association
+1 317-917-1100
Why it matters: Even with a monthly dip, Indiana’s consistent permit volume and top-ten national ranking signal a resilient housing market that continues to attract builders and buyers alike. As the state heads into the final quarter of 2026, sustained demand for single-family homes could keep Indiana ahead of its regional competitors—and the slight year-over-year decline remains well within normal market fluctuations.
