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Honolulu 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 28  bar 28  bar 0  bar 000
Q2 135  bar 133  bar 2  bar 200
Q3 208  bar 167  bar 41  bar 2039
Q4 108  bar 98  bar 10  bar 640
 
1998 Q1 92  bar 86  bar 6  bar 600
Q2 95  bar 95  bar 0  bar 000
Q3 147  bar 147  bar 0  bar 000
Q4 153  bar 107  bar 46  bar 0046
 
1999 Q1 199  bar 107  bar 92  bar 0092
Q2 88  bar 88  bar 0  bar 000
Q3 49  bar 49  bar 0  bar 000
Q4 173  bar 173  bar 0  bar 000
 
2000 Q1 100  bar 100  bar 0  bar 000
Q2 163  bar 79  bar 84  bar 4080
Q3 143  bar 95  bar 48  bar 0048
Q4 156  bar 156  bar 0  bar 000
 
2001 Q1 103  bar 103  bar 0  bar 000
Q2 170  bar 162  bar 8  bar 080
Q3 128  bar 122  bar 6  bar 006
Q4 155  bar 127  bar 28  bar 0424
 
2002 Q1 95  bar 95  bar 0  bar 000
Q2 402  bar 281  bar 121  bar 08113
Q3 118  bar 118  bar 0  bar 000
Q4 363  bar 272  bar 91  bar 4087
 
2003 Q1 460  bar 176  bar 284  bar 60278
Q2 183  bar 183  bar 0  bar 000
Q3 203  bar 191  bar 12  bar 0120
Q4 221  bar 221  bar 0  bar 000
 
2004 Q1 583  bar 266  bar 317  bar 836273
Q2 295  bar 295  bar 0  bar 000
Q3 131  bar 131  bar 0  bar 000
Q4 230  bar 138  bar 92  bar 02864
 
2005 Q1 169  bar 169  bar 0  bar 000
Q2 466  bar 221  bar 245  bar 028217
Q3 167  bar 167  bar 0  bar 000
Q4 140  bar 118  bar 22  bar 0166
 
2006 Q1 112  bar 112  bar 0  bar 000
Q2 116  bar 110  bar 6  bar 006
Q3 190  bar 190  bar 0  bar 000
Q4 577  bar 138  bar 439  bar 00439
 
2007 Q1 565  bar 171  bar 394  bar 00394
Q2 168  bar 123  bar 45  bar 0045
Q3 352  bar 140  bar 212  bar 00212
Q4 166  bar 72  bar 94  bar 0094
 
2008 Q1 70  bar 55  bar 15  bar 0015
Q2 173  bar 63  bar 110  bar 08102
Q3 49  bar 49  bar 0  bar 000
Q4 53  bar 53  bar 0  bar 000
 
2009 Q1 47  bar 47  bar 0  bar 000
Q2 110  bar 110  bar 0  bar 000
Q3 51  bar 51  bar 0  bar 000
Q4 153  bar 69  bar 84  bar 0084
 
2010 Q1 35  bar 35  bar 0  bar 000
Q2 111  bar 111  bar 0  bar 000
Q3 51  bar 51  bar 0  bar 000
Q4 101  bar 101  bar 0  bar 000
 
2011 Q1 50  bar 50  bar 0  bar 000
Q2 208  bar 84  bar 124  bar 00124
Q3 59  bar 43  bar 16  bar 0016
Q4 60  bar 60  bar 0  bar 000
 
2012 Q1 152  bar 98  bar 54  bar 0846
Q2 267  bar 63  bar 204  bar 00204
Q3 104  bar 104  bar 0  bar 000
Q4 308  bar 107  bar 201  bar 00201
 
2013 Q1 388  bar 43  bar 345  bar 00345
Q2 108  bar 108  bar 0  bar 000
Q3 106  bar 104  bar 2  bar 200
Q4 237  bar 73  bar 164  bar 00164
 
2014 Q1 43  bar 43  bar 0  bar 000
Q2 129  bar 125  bar 4  bar 400
Q3 110  bar 110  bar 0  bar 000
Q4 152  bar 68  bar 84  bar 0084
 
2015 Q1 499  bar 102  bar 397  bar 00397
Q2 442  bar 110  bar 332  bar 00332
Q3 120  bar 120  bar 0  bar 000
Q4 516  bar 52  bar 464  bar 00464
 
2016 Q1 87  bar 87  bar 0  bar 000
Q2 172  bar 84  bar 88  bar 0088
Q3 126  bar 54  bar 72  bar 0072
Q4 72  bar 72  bar 0  bar 000
 
2017 Q1 88  bar 88  bar 0  bar 000
Q2 64  bar 64  bar 0  bar 000
Q3 160  bar 76  bar 84  bar 0084
Q4 228  bar 104  bar 124  bar 00124
 
2018 Q1 71  bar 71  bar 0  bar 000
Q2 130  bar 130  bar 0  bar 000
Q3 105  bar 105  bar 0  bar 000
Q4 157  bar 157  bar 0  bar 000
 
2019 Q1 301  bar 55  bar 246  bar 00246
Q2 60  bar 60  bar 0  bar 000
Q3 90  bar 90  bar 0  bar 000
Q4 525  bar 117  bar 408  bar 00408
 
2020 Q1 53  bar 53  bar 0  bar 000
Q2 153  bar 55  bar 98  bar 0395
Q3 134  bar 134  bar 0  bar 000
Q4 86  bar 55  bar 31  bar 0031
 
2021 Q1 100  bar 100  bar 0  bar 000
Q2 97  bar 97  bar 0  bar 000
Q3 61  bar 61  bar 0  bar 000
Q4 106  bar 106  bar 0  bar 000
 
2022 Q1 145  bar 23  bar 122  bar 220100
Q2 76  bar 32  bar 44  bar 16028
Q3 161  bar 108  bar 53  bar 6047
Q4 389  bar 31  bar 358  bar 120346
 
2023 Q1 53  bar 46  bar 7  bar 070
Q2 183  bar 48  bar 135  bar 200115
Q3 169  bar 52  bar 117  bar 100107
Q4 170  bar 51  bar 119  bar 100109
 


Sources: STI: PopStats and STI: Colossus