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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 347  bar 244  bar 103  bar 24772
Q2 375  bar 304  bar 71  bar 21257
Q3 364  bar 286  bar 78  bar 10680
Q4 501  bar 318  bar 183  bar 163164
 
1998 Q1 231  bar 227  bar 4  bar 400
Q2 418  bar 360  bar 58  bar 38200
Q3 794  bar 362  bar 432  bar 820404
Q4 385  bar 359  bar 26  bar 2600
 
1999 Q1 309  bar 277  bar 32  bar 3200
Q2 827  bar 397  bar 430  bar 88414
Q3 418  bar 346  bar 72  bar 16056
Q4 650  bar 388  bar 262  bar 148240
 
2000 Q1 549  bar 303  bar 246  bar 020226
Q2 788  bar 336  bar 452  bar 44444
Q3 258  bar 254  bar 4  bar 400
Q4 942  bar 245  bar 697  bar 88681
 
2001 Q1 646  bar 238  bar 408  bar 80400
Q2 371  bar 346  bar 25  bar 2320
Q3 340  bar 284  bar 56  bar 10640
Q4 445  bar 361  bar 84  bar 43446
 
2002 Q1 235  bar 209  bar 26  bar 2240
Q2 337  bar 314  bar 23  bar 2030
Q3 414  bar 368  bar 46  bar 16624
Q4 393  bar 358  bar 35  bar 2033
 
2003 Q1 574  bar 285  bar 289  bar 814267
Q2 356  bar 356  bar 0  bar 000
Q3 504  bar 464  bar 40  bar 4000
Q4 657  bar 330  bar 327  bar 2412291
 
2004 Q1 247  bar 227  bar 20  bar 2000
Q2 503  bar 469  bar 34  bar 22120
Q3 365  bar 300  bar 65  bar 10550
Q4 258  bar 255  bar 3  bar 030
 
2005 Q1 192  bar 180  bar 12  bar 0120
Q2 400  bar 322  bar 78  bar 61260
Q3 479  bar 377  bar 102  bar 01092
Q4 273  bar 270  bar 3  bar 030
 
2006 Q1 177  bar 163  bar 14  bar 266
Q2 318  bar 305  bar 13  bar 490
Q3 218  bar 201  bar 17  bar 0314
Q4 240  bar 152  bar 88  bar 0088
 
2007 Q1 91  bar 85  bar 6  bar 060
Q2 210  bar 210  bar 0  bar 000
Q3 164  bar 158  bar 6  bar 060
Q4 164  bar 153  bar 11  bar 0011
 
2008 Q1 357  bar 71  bar 286  bar 80278
Q2 111  bar 99  bar 12  bar 2010
Q3 124  bar 94  bar 30  bar 10119
Q4 80  bar 76  bar 4  bar 400
 
2009 Q1 27  bar 27  bar 0  bar 000
Q2 55  bar 51  bar 4  bar 400
Q3 46  bar 46  bar 0  bar 000
Q4 243  bar 65  bar 178  bar 03175
 
2010 Q1 55  bar 55  bar 0  bar 000
Q2 79  bar 77  bar 2  bar 200
Q3 69  bar 69  bar 0  bar 000
Q4 74  bar 71  bar 3  bar 030
 
2011 Q1 55  bar 55  bar 0  bar 000
Q2 296  bar 75  bar 221  bar 09212
Q3 191  bar 83  bar 108  bar 00108
Q4 89  bar 83  bar 6  bar 006
 
2012 Q1 63  bar 63  bar 0  bar 000
Q2 108  bar 106  bar 2  bar 200
Q3 270  bar 138  bar 132  bar 40128
Q4 372  bar 126  bar 246  bar 20244
 
2013 Q1 113  bar 111  bar 2  bar 200
Q2 936  bar 148  bar 788  bar 00788
Q3 158  bar 158  bar 0  bar 000
Q4 149  bar 147  bar 2  bar 200
 
2014 Q1 490  bar 85  bar 405  bar 03402
Q2 193  bar 177  bar 16  bar 2140
Q3 161  bar 151  bar 10  bar 0010
Q4 171  bar 151  bar 20  bar 8120
 
2015 Q1 201  bar 85  bar 116  bar 80108
Q2 353  bar 148  bar 205  bar 00205
Q3 147  bar 147  bar 0  bar 000
Q4 164  bar 134  bar 30  bar 0030
 
2016 Q1 87  bar 87  bar 0  bar 000
Q2 161  bar 143  bar 18  bar 0018
Q3 571  bar 157  bar 414  bar 04410
Q4 139  bar 139  bar 0  bar 000
 
2017 Q1 180  bar 142  bar 38  bar 02810
Q2 231  bar 157  bar 74  bar 0470
Q3 226  bar 179  bar 47  bar 03215
Q4 212  bar 172  bar 40  bar 21028
 
2018 Q1 208  bar 128  bar 80  bar 66311
Q2 197  bar 192  bar 5  bar 230
Q3 264  bar 154  bar 110  bar 101981
Q4 763  bar 143  bar 620  bar 28610
 
2019 Q1 207  bar 99  bar 108  bar 00108
Q2 294  bar 144  bar 150  bar 412134
Q3 220  bar 185  bar 35  bar 61712
Q4 441  bar 149  bar 292  bar 816268
 
2020 Q1 201  bar 112  bar 89  bar 61667
Q2 149  bar 145  bar 4  bar 400
Q3 528  bar 180  bar 348  bar 20346
Q4 219  bar 217  bar 2  bar 200
 
2021 Q1 233  bar 183  bar 50  bar 6044
Q2 422  bar 312  bar 110  bar 46100
Q3 199  bar 181  bar 18  bar 648
Q4 220  bar 220  bar 0  bar 000
 
2022 Q1 447  bar 153  bar 294  bar 60288
Q2 630  bar 168  bar 462  bar 612444
Q3 381  bar 199  bar 182  bar 00182
Q4 273  bar 95  bar 178  bar 640132
 
2023 Q1 72  bar 72  bar 0  bar 000
Q2 220  bar 122  bar 98  bar 2492
Q3 288  bar 136  bar 152  bar 180134
Q4 103  bar 101  bar 2  bar 200
 


Sources: STI: PopStats and STI: Colossus