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Bonneville 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 16  bar 16  bar 0  bar 000
Q2 51  bar 39  bar 12  bar 1200
Q3 50  bar 46  bar 4  bar 040
Q4 71  bar 44  bar 27  bar 0027
 
1998 Q1 24  bar 24  bar 0  bar 000
Q2 50  bar 50  bar 0  bar 000
Q3 50  bar 50  bar 0  bar 000
Q4 62  bar 50  bar 12  bar 0120
 
1999 Q1 27  bar 21  bar 6  bar 600
Q2 70  bar 70  bar 0  bar 000
Q3 61  bar 61  bar 0  bar 000
Q4 48  bar 46  bar 2  bar 200
 
2000 Q1 45  bar 35  bar 10  bar 046
Q2 51  bar 49  bar 2  bar 200
Q3 52  bar 26  bar 26  bar 4022
Q4 44  bar 38  bar 6  bar 600
 
2001 Q1 28  bar 20  bar 8  bar 800
Q2 49  bar 49  bar 0  bar 000
Q3 56  bar 56  bar 0  bar 000
Q4 121  bar 51  bar 70  bar 0070
 
2002 Q1 18  bar 18  bar 0  bar 000
Q2 62  bar 46  bar 16  bar 0016
Q3 95  bar 47  bar 48  bar 0048
Q4 70  bar 68  bar 2  bar 200
 
2003 Q1 35  bar 31  bar 4  bar 400
Q2 65  bar 59  bar 6  bar 600
Q3 146  bar 84  bar 62  bar 24416
Q4 96  bar 89  bar 7  bar 070
 
2004 Q1 77  bar 61  bar 16  bar 0160
Q2 129  bar 101  bar 28  bar 0280
Q3 106  bar 92  bar 14  bar 086
Q4 153  bar 121  bar 32  bar 0320
 
2005 Q1 40  bar 40  bar 0  bar 000
Q2 83  bar 76  bar 7  bar 430
Q3 145  bar 101  bar 44  bar 02024
Q4 101  bar 97  bar 4  bar 040
 
2006 Q1 84  bar 82  bar 2  bar 200
Q2 120  bar 104  bar 16  bar 880
Q3 95  bar 87  bar 8  bar 080
Q4 83  bar 72  bar 11  bar 0110
 
2007 Q1 58  bar 54  bar 4  bar 040
Q2 80  bar 80  bar 0  bar 000
Q3 268  bar 95  bar 173  bar 00173
Q4 55  bar 45  bar 10  bar 280
 
2008 Q1 15  bar 15  bar 0  bar 000
Q2 25  bar 25  bar 0  bar 000
Q3 44  bar 44  bar 0  bar 000
Q4 24  bar 24  bar 0  bar 000
 
2009 Q1 2  bar 2  bar 0  bar 000
Q2 20  bar 18  bar 2  bar 200
Q3 23  bar 21  bar 2  bar 200
Q4 32  bar 32  bar 0  bar 000
 
2010 Q1 97  bar 17  bar 80  bar 0080
Q2 34  bar 34  bar 0  bar 000
Q3 16  bar 16  bar 0  bar 000
Q4 14  bar 14  bar 0  bar 000
 
2011 Q1 12  bar 12  bar 0  bar 000
Q2 26  bar 26  bar 0  bar 000
Q3 23  bar 23  bar 0  bar 000
Q4 19  bar 19  bar 0  bar 000
 
2012 Q1 7  bar 7  bar 0  bar 000
Q2 50  bar 50  bar 0  bar 000
Q3 31  bar 31  bar 0  bar 000
Q4 23  bar 23  bar 0  bar 000
 
2013 Q1 28  bar 28  bar 0  bar 000
Q2 37  bar 37  bar 0  bar 000
Q3 31  bar 31  bar 0  bar 000
Q4 30  bar 30  bar 0  bar 000
 
2014 Q1 16  bar 16  bar 0  bar 000
Q2 29  bar 27  bar 2  bar 200
Q3 43  bar 43  bar 0  bar 000
Q4 38  bar 36  bar 2  bar 200
 
2015 Q1 21  bar 21  bar 0  bar 000
Q2 62  bar 62  bar 0  bar 000
Q3 64  bar 64  bar 0  bar 000
Q4 79  bar 35  bar 44  bar 8036
 
2016 Q1 22  bar 22  bar 0  bar 000
Q2 49  bar 49  bar 0  bar 000
Q3 40  bar 40  bar 0  bar 000
Q4 67  bar 67  bar 0  bar 000
 
2017 Q1 27  bar 27  bar 0  bar 000
Q2 52  bar 52  bar 0  bar 000
Q3 135  bar 87  bar 48  bar 0048
Q4 111  bar 69  bar 42  bar 0042
 
2018 Q1 43  bar 43  bar 0  bar 000
Q2 58  bar 58  bar 0  bar 000
Q3 50  bar 50  bar 0  bar 000
Q4 180  bar 180  bar 0  bar 000
 
2019 Q1 54  bar 54  bar 0  bar 000
Q2 60  bar 60  bar 0  bar 000
Q3 107  bar 107  bar 0  bar 000
Q4 79  bar 79  bar 0  bar 000
 
2020 Q1 41  bar 41  bar 0  bar 000
Q2 89  bar 89  bar 0  bar 000
Q3 89  bar 89  bar 0  bar 000
Q4 45  bar 45  bar 0  bar 000
 
2021 Q1 56  bar 56  bar 0  bar 000
Q2 129  bar 129  bar 0  bar 000
Q3 87  bar 87  bar 0  bar 000
Q4 98  bar 98  bar 0  bar 000
 
2022 Q1 62  bar 62  bar 0  bar 000
Q2 126  bar 122  bar 4  bar 040
Q3 71  bar 71  bar 0  bar 000
Q4 72  bar 56  bar 16  bar 0160
 
2023 Q1 31  bar 31  bar 0  bar 000
Q2 30  bar 30  bar 0  bar 000
Q3 200  bar 63  bar 137  bar 00137
Q4 131  bar 85  bar 46  bar 01630
 


Sources: STI: PopStats and STI: Colossus