1. 2016 Market Presentation Indiana Brokers Association November 15, 2016
Steve Lains, CEO
Builders Association of Greater Indianapolis

2. BAGI Mission BAGI Mission: Promote, Educate & Network 15,000 Attendees
Builder/Realtor Collaboration

3. Why New Construction? 90% of area builders are BAGI Members
BAGI has approximately 200 builder members
New Construction – $1.8 billion economic impact
New Home Construction – 5,600 annually
10 Builders account for 70% of those homes

4. Why New Home Construction?
Benefits
Move-in ready
Warranty
It’s all new
Whole home certification
Ease of financing
Energy Code/Standards
Ease of process for the realtor
BAGI Standards

5. How to Find New Construction Inventory: BAGI
How to Find New Construction Inventory: BAGI.COM – Find a Home & Find a Builder

6. Current Market Stats
Previous Starts and Housing Forecast of Starts – 5,600 ‘17 to ‘ %? 2019 – 7,500? slight decrease?

7. Market Share by County Based on Building Permits Issued 76% “Northwest” Marion County Johnson County

8. Average Price of New Homes by County Based on Closings 8 of 9 counties record highest average (Hamilton County highest in 2015)

9. Dollar Volume Forecast of Homes and The Average Price of Housing $1
Dollar Volume Forecast of Homes and The Average Price of Housing $1.8 billion volume 70+% under $325k

10. Homes Needed Annually = Lots needed Current DVL lots – 10k Home Demand ’21 – 35k DVL lots needed ‘21 – 25k

11. New Home Subdivisions (Started and Projected to Start) No overbuilding trends: Subdivisions – % of peak Lots – 9,888 35% of peak Net Home Inventory – 611* 35% of peak * - less 172 models

12. Market Perspectives Demographics
Industry: 10 builders do 70% of market share
Consumer: Empty Nester/Millennial
Government: Tax Caps = $400+ Homes

13. Demographics - Industry
500 Members
200 Builders
10 Builders doing 70% of market share
10 Builders shift in price point
10 years – first time home buyers
Today – 8 of 10 in 300K+

14. Demographics - Consumer
Millennials
Price Sensitive
Amenities
Apartments

15. Demographics - Consumer
Empty Nesters
Price Sensitive
Apartments

16. Demographic - Government
Tax Caps = $400k+ Homes
Fiscal Impact Study
Community Tax Cap Study
Additional Regulations
Architectural Standards
Lot size
House size
Bonds, etc.

17. Collaboration Next Steps
Keep the lines of communication open between BAGI, MIBOR & Brokers Association
Continuing Education opportunities/Construction 101 hosted by BAGI for realtors
BAGI/MIBOR must advocate for housing growth and economic development (i.e. providing input on changing decade old development standards/ordinances to meet today’s buyers needs

18. Questions?