So far this year, fewer new homes have been under construction in Johnson County compared other central Indiana communities, but builders say that is about to change.
The number of new construction permits, a key metric in counting the number of new homes being built, is on the rise almost everywhere in central Indiana outside of Johnson County, according to data from the Builders Association of Greater Indianapolis. On average, the amount of permits issued through May for new homes rose by 25 percent in central Indiana compared to the first five months of 2017, but in Johnson County, the number of permits dropped by 3 percent, according to data from the builders association.
But home builders expect that to change as additional projects get underway.
[sc:text-divider text-divider-title=”Story continues below gallery” ]Click here to purchase photos from this gallery
Arbor Homes, Westport Homes and M/I Homes all said that they are looking for additional locations to develop new neighborhoods in Johnson County, with projects in various stages of planning.
Arbor Homes is looking at properties to develop into new neighborhoods in Greenwood, Franklin and Bargersville. No plans have been finalized in any of those communities yet, but Johnson County is an area that the home builder intends to continue to be active in long-term, said Steve Hatchel, vice president of sales and marketing for Arbor Homes.
Westport Homes is again working on a proposal to develop a neighborhood on a 40-acre property in Greenwood after the Greenwood City Council twice voted down past proposals, said Rob Montgomery, the company’s vice president of sales and marketing. And a 525-home Westport Homes project was recently approved in Whiteland, which will also provide a large boost to their home construction efforts in the county, he said.
M/I Homes recently spent $1.2 to purchase 37 acres of land from Center Grove schools south of Sugar Grove Elementary School, near Curry and Berry roads. A decision on when and how they will develop the property hasn’t been determined yet, said Jerrod Klein, division vice president of M/I Homes of Indiana.
Builders say the demand for newly constructed homes is up because buyers have few options when looking to purchase a home.
In July 2016, home buyers had nearly 700 homes to choose from that were listed for sale in Johnson County. In May, the number of homes listed for sale was 362, according to data from F.C. Tucker Co., an Indianapolis area real estate firm.
Local home builders say the decrease in homes for sale is one of several factors leading home buyers toward newly constructed houses. The problem builders are facing is not being able to keep up with the demand for new homes with the current neighborhoods they are developing.
Westport Homes has started selling homes before they are ready to start building them, Montgomery said.
“The bottom line is Johnson County, like some other areas, is moving quickly,” Montgomery said. “The biggest factor is lack of existing inventory. There isn’t much inventory out there, and it is driving a lot of people out to new construction.”
M/I Homes is experiencing similar issues. They’ve sold out of many of the current sections they have approved in various Johnson County communities and are waiting for the next sections to get approval from local government boards so that they can begin sales and construction, Klein said.
“We are seeing significant demand in our existing Johnson County communities,” Klein said. “We frankly don’t have enough developed lots in those communities to meet the demand.”
[sc:pullout-title pullout-title=”By the numbers” ][sc:pullout-text-begin]
The number of new homes being built in Johnson County through May is down from the same time last year. Here’s a look at how many home construction permits have been issued in Johnson County communities for first five months of the year:
Community;2017;2018
Bargersville;42;34
Edinburgh;1;3
Franklin;44;59
Greenwood;130;131
Prince’s Lake;1;1
Trafalgar;7;11
Whiteland;12;12
Unincorporated Johnson County;62;38
Total;299;289
Source: Builders Association of Greater Indianapolis
[sc:pullout-text-end][sc:pullout-title pullout-title=”By the numbers” ][sc:pullout-text-begin]
Johnson County was one of only two counties in the Indianapolis area not to experience a rapid increase in home construction compared to the first five months of 2017. Here’s a look at how many home permits have been issued in Indianapolis area counties through the first five months of the year:
County;2017;2018;change
Boone;151;214;42%
Hamilton;949;1190;25%
Hancock;361;397;30%
Hendrick’s;361;397;10%
Johnson;299;289;-3%
Madison;36;26;-28%
Marion;433;654;21%
Morgan47;58;23%
Shelby;33;46;39%
[sc:pullout-text-end]
