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DeKalb County – Building Permits 2023

Construction Word Cloud

Building permits serve as a critical indicator of economic health, reflecting trends in construction, real estate, and broader economic activity. Governments, investors, businesses, and policymakers closely monitor building permit statistics because they provide valuable insights into future economic growth, employment, investment patterns, and urban development. Understanding the economic impact of tracking these permits is essential for informed decision-making at both macro and microeconomic levels.

  1. Leading Indicator of Economic Growth Building permits are a leading economic indicator, meaning they signal future economic activity before it materializes. When permit approvals rise, it suggests that developers and homeowners are planning new construction projects, which will lead to increased spending on labor, materials, and services. This activity stimulates economic growth by:

    • Boosting GDP: Construction contributes significantly to Gross Domestic Product (GDP). Increased permits indicate upcoming investments in residential, commercial, and infrastructure projects, driving economic expansion.
    • Encouraging Multiplier Effects: Construction generates demand for related industries, including manufacturing (steel, cement, lumber), transportation, and professional services (architecture, engineering). Each dollar spent in construction circulates through the economy, creating additional economic value.


  2. Employment and Labor Market Effects The construction sector is a major employer, and building permit trends directly influence job creation. Monitoring permits helps predict labor demand in:

    • Direct Construction Jobs (e.g., carpenters, electricians, plumbers)
    • Indirect Jobs (e.g., suppliers, equipment manufacturers, logistics)
    • Induced Jobs (e.g., retail, food services, real estate agents)


    A decline in permits may signal upcoming layoffs, while an increase suggests hiring surges. Policymakers use this data to implement workforce training programs or adjust fiscal policies to support employment stability.

  3. Real Estate Market Stability Building permits provide insights into housing supply and affordability. Key impacts include:

    • Housing Supply & Prices: A surge in residential permits can alleviate housing shortages, stabilizing or reducing home prices. Conversely, a permit slowdown may indicate future price increases due to constrained supply.
    • Commercial & Industrial Development: Permit trends for offices, warehouses, and retail spaces reflect business confidence. Rising commercial permits suggest economic optimism, while declines may signal downturns.


  4. Government Revenue and Public Planning Local governments rely on building permits for:

    • Tax Revenue: Permit fees, property taxes, and sales taxes from construction activities fund public services (schools, roads, utilities).
    • Infrastructure Planning: Permit data helps municipalities plan for transportation, utilities, and zoning adjustments to accommodate growth.
    • Regulatory Adjustments: Monitoring permits allows governments to identify bottlenecks (e.g., excessive delays in approvals) that may hinder economic development.


  5. Investment and Financial Market Implications Investors and financial institutions analyze permit data to:

    • Guide Real Estate Investments: Developers and REITs (Real Estate Investment Trusts) use permit trends to identify high-growth regions.
    • Assess Credit Risk: Banks evaluate loan applications based on construction demand; rising permits may indicate lower risk in mortgage and commercial lending.
    • Predict Commodity Demand: Building material suppliers and futures traders monitor permits to anticipate demand for lumber, steel, and other inputs.


  6. Economic Policy and Risk Management Policymakers use permit statistics to:

    • Adjust Monetary Policy: Central banks may consider construction trends when setting interest rates to control inflation or stimulate growth.
    • Mitigate Bubbles & Crashes: Rapid increases in permits may signal overheating (e.g., housing bubbles), while prolonged declines could foreshadow recessions.


Conclusion

Monitoring building permit statistics is vital for anticipating economic trends, guiding investments, and shaping policy. These permits influence GDP growth, employment, real estate dynamics, government revenue, and financial markets. By analyzing permit data, stakeholders can make proactive decisions that enhance economic stability, promote sustainable development, and mitigate risks. Ignoring these indicators could lead to misallocated resources, housing crises, or missed growth opportunities-underscoring the importance of vigilant tracking in economic planning.

 
Quarter
      Total Units
      Single-Family Units
      All Multi-Family Units
2-unit
3 / 4-unit
5+ unit
     
1997 Q1 186  bar 183  bar 3  bar 030
Q2 660  bar 204  bar 456  bar 100446
Q3 942  bar 263  bar 679  bar 100669
Q4 277  bar 277  bar 0  bar 000
 
1998 Q1 333  bar 319  bar 14  bar 1400
Q2 282  bar 282  bar 0  bar 000
Q3 309  bar 309  bar 0  bar 000
Q4 536  bar 284  bar 252  bar 00252
 
1999 Q1 378  bar 378  bar 0  bar 000
Q2 445  bar 445  bar 0  bar 000
Q3 749  bar 389  bar 360  bar 00360
Q4 367  bar 271  bar 96  bar 0096
 
2000 Q1 342  bar 257  bar 85  bar 0085
Q2 469  bar 416  bar 53  bar 0053
Q3 385  bar 371  bar 14  bar 0014
Q4 291  bar 277  bar 14  bar 0014
 
2001 Q1 694  bar 422  bar 272  bar 40268
Q2 418  bar 404  bar 14  bar 4100
Q3 771  bar 129  bar 642  bar 80634
Q4 515  bar 346  bar 169  bar 00169
 
2002 Q1 245  bar 245  bar 0  bar 000
Q2 1,579  bar 471  bar 1,108  bar 001,108
Q3 804  bar 528  bar 276  bar 00276
Q4 497  bar 162  bar 335  bar 00335
 
2003 Q1 417  bar 245  bar 172  bar 00172
Q2 616  bar 505  bar 111  bar 00111
Q3 519  bar 427  bar 92  bar 0092
Q4 268  bar 198  bar 70  bar 0070
 
2004 Q1 462  bar 220  bar 242  bar 00242
Q2 461  bar 282  bar 179  bar 00179
Q3 438  bar 438  bar 0  bar 000
Q4 241  bar 241  bar 0  bar 000
 
2005 Q1 476  bar 249  bar 227  bar 00227
Q2 406  bar 240  bar 166  bar 00166
Q3 308  bar 288  bar 20  bar 0020
Q4 323  bar 323  bar 0  bar 000
 
2006 Q1 763  bar 308  bar 455  bar 00455
Q2 111  bar 111  bar 0  bar 000
Q3 360  bar 165  bar 195  bar 00195
Q4 272  bar 272  bar 0  bar 000
 
2007 Q1 842  bar 207  bar 635  bar 00635
Q2 364  bar 208  bar 156  bar 00156
Q3 313  bar 83  bar 230  bar 00230
Q4 400  bar 125  bar 275  bar 00275
 
2008 Q1 489  bar 117  bar 372  bar 00372
Q2 210  bar 93  bar 117  bar 00117
Q3 48  bar 48  bar 0  bar 000
Q4 150  bar 35  bar 115  bar 00115
 
2009 Q1 10  bar 10  bar 0  bar 000
Q2 11  bar 11  bar 0  bar 000
Q3 32  bar 27  bar 5  bar 005
Q4 20  bar 20  bar 0  bar 000
 
2010 Q1 14  bar 9  bar 5  bar 005
Q2 47  bar 47  bar 0  bar 000
Q3 30  bar 30  bar 0  bar 000
Q4 54  bar 54  bar 0  bar 000
 
2011 Q1 17  bar 17  bar 0  bar 000
Q2 15  bar 15  bar 0  bar 000
Q3 10  bar 10  bar 0  bar 000
Q4 239  bar 24  bar 215  bar 00215
 
2012 Q1 15  bar 15  bar 0  bar 000
Q2 24  bar 24  bar 0  bar 000
Q3 20  bar 20  bar 0  bar 000
Q4 54  bar 34  bar 20  bar 0020
 
2013 Q1 158  bar 28  bar 130  bar 00130
Q2 23  bar 23  bar 0  bar 000
Q3 32  bar 32  bar 0  bar 000
Q4 22  bar 22  bar 0  bar 000
 
2014 Q1 17  bar 17  bar 0  bar 000
Q2 33  bar 33  bar 0  bar 000
Q3 222  bar 54  bar 168  bar 00168
Q4 258  bar 48  bar 210  bar 00210
 
2015 Q1 63  bar 63  bar 0  bar 000
Q2 77  bar 77  bar 0  bar 000
Q3 132  bar 96  bar 36  bar 0036
Q4 210  bar 91  bar 119  bar 00119
 
2016 Q1 100  bar 72  bar 28  bar 0028
Q2 152  bar 135  bar 17  bar 0017
Q3 116  bar 94  bar 22  bar 0022
Q4 194  bar 172  bar 22  bar 0022
 
2017 Q1 154  bar 132  bar 22  bar 0022
Q2 317  bar 130  bar 187  bar 00187
Q3 297  bar 297  bar 0  bar 000
Q4 216  bar 144  bar 72  bar 0072
 
2018 Q1 546  bar 108  bar 438  bar 00438
Q2 112  bar 107  bar 5  bar 005
Q3 148  bar 148  bar 0  bar 000
Q4 604  bar 149  bar 455  bar 00455
 
2019 Q1 136  bar 136  bar 0  bar 000
Q2 191  bar 191  bar 0  bar 000
Q3 182  bar 182  bar 0  bar 000
Q4 173  bar 173  bar 0  bar 000
 
2020 Q1 106  bar 98  bar 8  bar 008
Q2 115  bar 115  bar 0  bar 000
Q3 187  bar 187  bar 0  bar 000
Q4 238  bar 238  bar 0  bar 000
 
2021 Q1 170  bar 165  bar 5  bar 005
Q2 232  bar 232  bar 0  bar 000
Q3 98  bar 98  bar 0  bar 000
Q4 772  bar 174  bar 598  bar 00598
 
2022 Q1 96  bar 96  bar 0  bar 000
Q2 90  bar 90  bar 0  bar 000
Q3 142  bar 102  bar 40  bar 0040
Q4 128  bar 128  bar 0  bar 000
 
2023 Q1 59  bar 59  bar 0  bar 000
Q2 57  bar 57  bar 0  bar 000
Q3 269  bar 85  bar 184  bar 00184
Q4 663  bar 52  bar 611  bar 00611
 


Sources: STI: PopStats and STI: Colossus