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Sedgwick 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 152  bar 144  bar 8  bar 800
Q2 198  bar 194  bar 4  bar 400
Q3 201  bar 195  bar 6  bar 600
Q4 254  bar 204  bar 50  bar 5000
 
1998 Q1 124  bar 120  bar 4  bar 400
Q2 222  bar 220  bar 2  bar 200
Q3 214  bar 200  bar 14  bar 1400
Q4 215  bar 205  bar 10  bar 1000
 
1999 Q1 140  bar 132  bar 8  bar 800
Q2 183  bar 175  bar 8  bar 800
Q3 200  bar 194  bar 6  bar 600
Q4 183  bar 179  bar 4  bar 400
 
2000 Q1 147  bar 139  bar 8  bar 800
Q2 119  bar 115  bar 4  bar 400
Q3 104  bar 102  bar 2  bar 200
Q4 138  bar 118  bar 20  bar 1280
 
2001 Q1 115  bar 105  bar 10  bar 1000
Q2 184  bar 178  bar 6  bar 600
Q3 149  bar 133  bar 16  bar 1600
Q4 151  bar 125  bar 26  bar 2600
 
2002 Q1 183  bar 161  bar 22  bar 1480
Q2 178  bar 176  bar 2  bar 200
Q3 149  bar 145  bar 4  bar 400
Q4 186  bar 124  bar 62  bar 2060
 
2003 Q1 132  bar 130  bar 2  bar 200
Q2 159  bar 153  bar 6  bar 240
Q3 186  bar 180  bar 6  bar 600
Q4 709  bar 203  bar 506  bar 40502
 
2004 Q1 192  bar 176  bar 16  bar 1600
Q2 254  bar 246  bar 8  bar 800
Q3 218  bar 210  bar 8  bar 800
Q4 165  bar 161  bar 4  bar 400
 
2005 Q1 126  bar 126  bar 0  bar 000
Q2 278  bar 220  bar 58  bar 5800
Q3 268  bar 208  bar 60  bar 6000
Q4 233  bar 221  bar 12  bar 1200
 
2006 Q1 195  bar 191  bar 4  bar 400
Q2 161  bar 159  bar 2  bar 200
Q3 172  bar 166  bar 6  bar 600
Q4 307  bar 146  bar 161  bar 100151
 
2007 Q1 165  bar 153  bar 12  bar 1200
Q2 209  bar 195  bar 14  bar 4010
Q3 115  bar 87  bar 28  bar 4024
Q4 199  bar 156  bar 43  bar 16027
 
2008 Q1 200  bar 108  bar 92  bar 0092
Q2 173  bar 169  bar 4  bar 400
Q3 329  bar 133  bar 196  bar 40192
Q4 127  bar 121  bar 6  bar 600
 
2009 Q1 65  bar 63  bar 2  bar 200
Q2 215  bar 73  bar 142  bar 220120
Q3 122  bar 122  bar 0  bar 000
Q4 137  bar 97  bar 40  bar 0040
 
2010 Q1 66  bar 62  bar 4  bar 400
Q2 114  bar 94  bar 20  bar 10010
Q3 58  bar 56  bar 2  bar 200
Q4 58  bar 42  bar 16  bar 1600
 
2011 Q1 43  bar 41  bar 2  bar 200
Q2 59  bar 53  bar 6  bar 600
Q3 98  bar 92  bar 6  bar 600
Q4 63  bar 55  bar 8  bar 800
 
2012 Q1 44  bar 38  bar 6  bar 600
Q2 43  bar 41  bar 2  bar 200
Q3 68  bar 50  bar 18  bar 1800
Q4 94  bar 74  bar 20  bar 2000
 
2013 Q1 71  bar 57  bar 14  bar 1400
Q2 91  bar 71  bar 20  bar 2000
Q3 91  bar 79  bar 12  bar 840
Q4 138  bar 118  bar 20  bar 1640
 
2014 Q1 64  bar 58  bar 6  bar 600
Q2 81  bar 67  bar 14  bar 1040
Q3 80  bar 66  bar 14  bar 1400
Q4 76  bar 68  bar 8  bar 800
 
2015 Q1 45  bar 41  bar 4  bar 400
Q2 106  bar 82  bar 24  bar 2400
Q3 274  bar 78  bar 196  bar 120184
Q4 94  bar 80  bar 14  bar 1400
 
2016 Q1 139  bar 45  bar 94  bar 24070
Q2 143  bar 76  bar 67  bar 18049
Q3 136  bar 67  bar 69  bar 20049
Q4 150  bar 68  bar 82  bar 20062
 
2017 Q1 38  bar 34  bar 4  bar 400
Q2 74  bar 48  bar 26  bar 2600
Q3 111  bar 69  bar 42  bar 16026
Q4 158  bar 80  bar 78  bar 22848
 
2018 Q1 177  bar 110  bar 67  bar 48190
Q2 38  bar 6  bar 32  bar 3200
Q3 133  bar 92  bar 41  bar 22712
Q4 155  bar 97  bar 58  bar 28426
 
2019 Q1 78  bar 49  bar 29  bar 12413
Q2 142  bar 93  bar 49  bar 24322
Q3 121  bar 74  bar 47  bar 3638
Q4 127  bar 80  bar 47  bar 32015
 
2020 Q1 77  bar 69  bar 8  bar 440
Q2 95  bar 63  bar 32  bar 2840
Q3 98  bar 74  bar 24  bar 2040
Q4 124  bar 92  bar 32  bar 2840
 
2021 Q1 122  bar 72  bar 50  bar 4640
Q2 143  bar 81  bar 62  bar 6200
Q3 134  bar 102  bar 32  bar 2840
Q4 128  bar 102  bar 26  bar 2240
 
2022 Q1 241  bar 111  bar 130  bar 13000
Q2 285  bar 151  bar 134  bar 13400
Q3 229  bar 115  bar 114  bar 104100
Q4 191  bar 135  bar 56  bar 5600
 
2023 Q1 247  bar 127  bar 120  bar 12000
Q2 143  bar 101  bar 42  bar 4200
Q3 125  bar 89  bar 36  bar 3600
Q4 152  bar 114  bar 38  bar 3800
 


Sources: STI: PopStats and STI: Colossus