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Hawaii 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 118  bar 53  bar 65  bar 0065
Q2 66  bar 66  bar 0  bar 000
Q3 60  bar 58  bar 2  bar 200
Q4 50  bar 50  bar 0  bar 000
 
1998 Q1 61  bar 57  bar 4  bar 400
Q2 73  bar 68  bar 5  bar 005
Q3 59  bar 59  bar 0  bar 000
Q4 69  bar 61  bar 8  bar 008
 
1999 Q1 63  bar 63  bar 0  bar 000
Q2 82  bar 62  bar 20  bar 0200
Q3 84  bar 76  bar 8  bar 008
Q4 116  bar 114  bar 2  bar 200
 
2000 Q1 192  bar 192  bar 0  bar 000
Q2 125  bar 125  bar 0  bar 000
Q3 136  bar 136  bar 0  bar 000
Q4 186  bar 114  bar 72  bar 01656
 
2001 Q1 114  bar 114  bar 0  bar 000
Q2 69  bar 69  bar 0  bar 000
Q3 154  bar 130  bar 24  bar 0240
Q4 70  bar 70  bar 0  bar 000
 
2002 Q1 74  bar 74  bar 0  bar 000
Q2 107  bar 107  bar 0  bar 000
Q3 150  bar 150  bar 0  bar 000
Q4 107  bar 107  bar 0  bar 000
 
2003 Q1 183  bar 156  bar 27  bar 0027
Q2 307  bar 253  bar 54  bar 0054
Q3 129  bar 129  bar 0  bar 000
Q4 207  bar 195  bar 12  bar 0120
 
2004 Q1 135  bar 135  bar 0  bar 000
Q2 101  bar 101  bar 0  bar 000
Q3 343  bar 210  bar 133  bar 03130
Q4 342  bar 250  bar 92  bar 0092
 
2005 Q1 166  bar 166  bar 0  bar 000
Q2 327  bar 188  bar 139  bar 08131
Q3 391  bar 199  bar 192  bar 00192
Q4 419  bar 293  bar 126  bar 00126
 
2006 Q1 251  bar 251  bar 0  bar 000
Q2 271  bar 228  bar 43  bar 0043
Q3 35  bar 35  bar 0  bar 000
Q4 255  bar 208  bar 47  bar 0839
 
2007 Q1 180  bar 178  bar 2  bar 200
Q2 186  bar 170  bar 16  bar 0016
Q3 125  bar 125  bar 0  bar 000
Q4 183  bar 183  bar 0  bar 000
 
2008 Q1 102  bar 102  bar 0  bar 000
Q2 130  bar 130  bar 0  bar 000
Q3 103  bar 103  bar 0  bar 000
Q4 10  bar 10  bar 0  bar 000
 
2009 Q1 83  bar 83  bar 0  bar 000
Q2 60  bar 57  bar 3  bar 030
Q3 74  bar 72  bar 2  bar 200
Q4 84  bar 59  bar 25  bar 0025
 
2010 Q1 50  bar 50  bar 0  bar 000
Q2 57  bar 57  bar 0  bar 000
Q3 64  bar 64  bar 0  bar 000
Q4 49  bar 49  bar 0  bar 000
 
2011 Q1 62  bar 62  bar 0  bar 000
Q2 42  bar 38  bar 4  bar 040
Q3 44  bar 44  bar 0  bar 000
Q4 58  bar 58  bar 0  bar 000
 
2012 Q1 45  bar 45  bar 0  bar 000
Q2 57  bar 57  bar 0  bar 000
Q3 44  bar 44  bar 0  bar 000
Q4 77  bar 77  bar 0  bar 000
 
2013 Q1 61  bar 61  bar 0  bar 000
Q2 63  bar 63  bar 0  bar 000
Q3 81  bar 81  bar 0  bar 000
Q4 75  bar 75  bar 0  bar 000
 
2014 Q1 60  bar 60  bar 0  bar 000
Q2 84  bar 74  bar 10  bar 1000
Q3 122  bar 114  bar 8  bar 800
Q4 38  bar 38  bar 0  bar 000
 
2015 Q1 57  bar 57  bar 0  bar 000
Q2 108  bar 108  bar 0  bar 000
Q3 82  bar 80  bar 2  bar 200
Q4 75  bar 71  bar 4  bar 400
 
2016 Q1 59  bar 57  bar 2  bar 200
Q2 67  bar 67  bar 0  bar 000
Q3 58  bar 58  bar 0  bar 000
Q4 67  bar 67  bar 0  bar 000
 
2017 Q1 130  bar 58  bar 72  bar 0072
Q2 86  bar 86  bar 0  bar 000
Q3 67  bar 65  bar 2  bar 200
Q4 92  bar 89  bar 3  bar 030
 
2018 Q1 114  bar 114  bar 0  bar 000
Q2 53  bar 53  bar 0  bar 000
Q3 93  bar 93  bar 0  bar 000
Q4 71  bar 65  bar 6  bar 006
 
2019 Q1 65  bar 65  bar 0  bar 000
Q2 48  bar 48  bar 0  bar 000
Q3 102  bar 102  bar 0  bar 000
Q4 99  bar 94  bar 5  bar 005
 
2020 Q1 85  bar 85  bar 0  bar 000
Q2 50  bar 50  bar 0  bar 000
Q3 85  bar 85  bar 0  bar 000
Q4 157  bar 157  bar 0  bar 000
 
2021 Q1 89  bar 89  bar 0  bar 000
Q2 66  bar 66  bar 0  bar 000
Q3 77  bar 77  bar 0  bar 000
Q4 67  bar 67  bar 0  bar 000
 
2022 Q1 104  bar 104  bar 0  bar 000
Q2 68  bar 66  bar 2  bar 200
Q3 46  bar 46  bar 0  bar 000
Q4 83  bar 83  bar 0  bar 000
 
2023 Q1 82  bar 82  bar 0  bar 000
Q2 118  bar 118  bar 0  bar 000
Q3 78  bar 76  bar 2  bar 200
Q4 92  bar 68  bar 24  bar 0024
 


Sources: STI: PopStats and STI: Colossus