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Johnson 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 78  bar 78  bar 0  bar 000
Q2 140  bar 136  bar 4  bar 400
Q3 110  bar 110  bar 0  bar 000
Q4 89  bar 87  bar 2  bar 200
 
1998 Q1 54  bar 54  bar 0  bar 000
Q2 104  bar 104  bar 0  bar 000
Q3 188  bar 112  bar 76  bar 7600
Q4 148  bar 78  bar 70  bar 7000
 
1999 Q1 58  bar 58  bar 0  bar 000
Q2 137  bar 137  bar 0  bar 000
Q3 118  bar 118  bar 0  bar 000
Q4 148  bar 146  bar 2  bar 200
 
2000 Q1 95  bar 95  bar 0  bar 000
Q2 125  bar 113  bar 12  bar 1200
Q3 139  bar 139  bar 0  bar 000
Q4 124  bar 118  bar 6  bar 600
 
2001 Q1 87  bar 83  bar 4  bar 400
Q2 135  bar 133  bar 2  bar 200
Q3 105  bar 99  bar 6  bar 600
Q4 112  bar 112  bar 0  bar 000
 
2002 Q1 66  bar 66  bar 0  bar 000
Q2 104  bar 104  bar 0  bar 000
Q3 119  bar 117  bar 2  bar 200
Q4 122  bar 120  bar 2  bar 200
 
2003 Q1 49  bar 49  bar 0  bar 000
Q2 92  bar 86  bar 6  bar 600
Q3 85  bar 83  bar 2  bar 200
Q4 142  bar 140  bar 2  bar 200
 
2004 Q1 54  bar 52  bar 2  bar 200
Q2 130  bar 128  bar 2  bar 200
Q3 99  bar 97  bar 2  bar 200
Q4 125  bar 113  bar 12  bar 480
 
2005 Q1 88  bar 86  bar 2  bar 200
Q2 112  bar 112  bar 0  bar 000
Q3 127  bar 125  bar 2  bar 200
Q4 182  bar 180  bar 2  bar 200
 
2006 Q1 269  bar 147  bar 122  bar 20120
Q2 110  bar 108  bar 2  bar 200
Q3 99  bar 97  bar 2  bar 200
Q4 57  bar 57  bar 0  bar 000
 
2007 Q1 49  bar 49  bar 0  bar 000
Q2 98  bar 98  bar 0  bar 000
Q3 46  bar 46  bar 0  bar 000
Q4 71  bar 69  bar 2  bar 200
 
2008 Q1 35  bar 25  bar 10  bar 0010
Q2 50  bar 50  bar 0  bar 000
Q3 133  bar 37  bar 96  bar 0096
Q4 82  bar 26  bar 56  bar 0056
 
2009 Q1 77  bar 13  bar 64  bar 0064
Q2 22  bar 22  bar 0  bar 000
Q3 313  bar 17  bar 296  bar 00296
Q4 32  bar 32  bar 0  bar 000
 
2010 Q1 20  bar 20  bar 0  bar 000
Q2 47  bar 47  bar 0  bar 000
Q3 133  bar 37  bar 96  bar 0096
Q4 35  bar 35  bar 0  bar 000
 
2011 Q1 26  bar 26  bar 0  bar 000
Q2 39  bar 39  bar 0  bar 000
Q3 30  bar 28  bar 2  bar 200
Q4 43  bar 43  bar 0  bar 000
 
2012 Q1 86  bar 18  bar 68  bar 0680
Q2 43  bar 43  bar 0  bar 000
Q3 44  bar 44  bar 0  bar 000
Q4 69  bar 57  bar 12  bar 1200
 
2013 Q1 50  bar 46  bar 4  bar 400
Q2 62  bar 62  bar 0  bar 000
Q3 64  bar 58  bar 6  bar 600
Q4 77  bar 53  bar 24  bar 0024
 
2014 Q1 53  bar 53  bar 0  bar 000
Q2 55  bar 55  bar 0  bar 000
Q3 56  bar 54  bar 2  bar 200
Q4 41  bar 37  bar 4  bar 400
 
2015 Q1 48  bar 48  bar 0  bar 000
Q2 53  bar 53  bar 0  bar 000
Q3 50  bar 50  bar 0  bar 000
Q4 55  bar 55  bar 0  bar 000
 
2016 Q1 29  bar 27  bar 2  bar 200
Q2 45  bar 45  bar 0  bar 000
Q3 62  bar 62  bar 0  bar 000
Q4 49  bar 49  bar 0  bar 000
 
2017 Q1 47  bar 47  bar 0  bar 000
Q2 81  bar 78  bar 3  bar 030
Q3 64  bar 64  bar 0  bar 000
Q4 71  bar 66  bar 5  bar 230
 
2018 Q1 37  bar 37  bar 0  bar 000
Q2 69  bar 69  bar 0  bar 000
Q3 67  bar 67  bar 0  bar 000
Q4 59  bar 59  bar 0  bar 000
 
2019 Q1 69  bar 69  bar 0  bar 000
Q2 74  bar 74  bar 0  bar 000
Q3 85  bar 85  bar 0  bar 000
Q4 72  bar 72  bar 0  bar 000
 
2020 Q1 71  bar 63  bar 8  bar 800
Q2 78  bar 74  bar 4  bar 400
Q3 103  bar 101  bar 2  bar 200
Q4 82  bar 74  bar 8  bar 800
 
2021 Q1 105  bar 99  bar 6  bar 600
Q2 95  bar 95  bar 0  bar 000
Q3 91  bar 87  bar 4  bar 400
Q4 152  bar 128  bar 24  bar 0024
 
2022 Q1 58  bar 54  bar 4  bar 400
Q2 130  bar 124  bar 6  bar 600
Q3 67  bar 67  bar 0  bar 000
Q4 42  bar 42  bar 0  bar 000
 
2023 Q1 24  bar 24  bar 0  bar 000
Q2 32  bar 32  bar 0  bar 000
Q3 39  bar 39  bar 0  bar 000
Q4 96  bar 96  bar 0  bar 000
 


Sources: STI: PopStats and STI: Colossus