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St. Tammany Parish – 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 147  bar 147  bar 0  bar 000
Q2 239  bar 239  bar 0  bar 000
Q3 157  bar 157  bar 0  bar 000
Q4 159  bar 157  bar 2  bar 200
 
1998 Q1 116  bar 109  bar 7  bar 007
Q2 395  bar 217  bar 178  bar 00178
Q3 157  bar 155  bar 2  bar 200
Q4 161  bar 161  bar 0  bar 000
 
1999 Q1 135  bar 127  bar 8  bar 035
Q2 173  bar 149  bar 24  bar 6018
Q3 194  bar 170  bar 24  bar 0321
Q4 117  bar 88  bar 29  bar 2324
 
2000 Q1 97  bar 82  bar 15  bar 0015
Q2 154  bar 137  bar 17  bar 2312
Q3 174  bar 155  bar 19  bar 4312
Q4 161  bar 143  bar 18  bar 8010
 
2001 Q1 141  bar 126  bar 15  bar 4011
Q2 172  bar 155  bar 17  bar 2312
Q3 158  bar 139  bar 19  bar 2413
Q4 134  bar 118  bar 16  bar 2311
 
2002 Q1 195  bar 178  bar 17  bar 2312
Q2 171  bar 159  bar 12  bar 237
Q3 510  bar 247  bar 263  bar 23258
Q4 189  bar 175  bar 14  bar 2012
 
2003 Q1 224  bar 224  bar 0  bar 000
Q2 224  bar 224  bar 0  bar 000
Q3 210  bar 210  bar 0  bar 000
Q4 258  bar 258  bar 0  bar 000
 
2004 Q1 231  bar 231  bar 0  bar 000
Q2 327  bar 261  bar 66  bar 6060
Q3 280  bar 280  bar 0  bar 000
Q4 350  bar 343  bar 7  bar 205
 
2005 Q1 491  bar 491  bar 0  bar 000
Q2 190  bar 190  bar 0  bar 000
Q3 206  bar 206  bar 0  bar 000
Q4 84  bar 84  bar 0  bar 000
 
2006 Q1 211  bar 211  bar 0  bar 000
Q2 259  bar 236  bar 23  bar 0023
Q3 194  bar 190  bar 4  bar 400
Q4 239  bar 229  bar 10  bar 1000
 
2007 Q1 499  bar 211  bar 288  bar 00288
Q2 203  bar 186  bar 17  bar 6011
Q3 429  bar 142  bar 287  bar 40283
Q4 121  bar 119  bar 2  bar 200
 
2008 Q1 143  bar 98  bar 45  bar 10035
Q2 109  bar 109  bar 0  bar 000
Q3 97  bar 95  bar 2  bar 200
Q4 41  bar 39  bar 2  bar 200
 
2009 Q1 49  bar 49  bar 0  bar 000
Q2 40  bar 40  bar 0  bar 000
Q3 47  bar 47  bar 0  bar 000
Q4 50  bar 48  bar 2  bar 200
 
2010 Q1 54  bar 52  bar 2  bar 200
Q2 77  bar 77  bar 0  bar 000
Q3 41  bar 41  bar 0  bar 000
Q4 41  bar 41  bar 0  bar 000
 
2011 Q1 65  bar 65  bar 0  bar 000
Q2 57  bar 57  bar 0  bar 000
Q3 52  bar 52  bar 0  bar 000
Q4 57  bar 57  bar 0  bar 000
 
2012 Q1 53  bar 53  bar 0  bar 000
Q2 67  bar 67  bar 0  bar 000
Q3 94  bar 94  bar 0  bar 000
Q4 112  bar 112  bar 0  bar 000
 
2013 Q1 79  bar 79  bar 0  bar 000
Q2 124  bar 124  bar 0  bar 000
Q3 113  bar 113  bar 0  bar 000
Q4 113  bar 113  bar 0  bar 000
 
2014 Q1 70  bar 70  bar 0  bar 000
Q2 158  bar 158  bar 0  bar 000
Q3 114  bar 114  bar 0  bar 000
Q4 89  bar 89  bar 0  bar 000
 
2015 Q1 107  bar 105  bar 2  bar 200
Q2 102  bar 102  bar 0  bar 000
Q3 109  bar 109  bar 0  bar 000
Q4 116  bar 112  bar 4  bar 400
 
2016 Q1 105  bar 105  bar 0  bar 000
Q2 119  bar 119  bar 0  bar 000
Q3 150  bar 146  bar 4  bar 400
Q4 97  bar 97  bar 0  bar 000
 
2017 Q1 147  bar 147  bar 0  bar 000
Q2 123  bar 123  bar 0  bar 000
Q3 99  bar 99  bar 0  bar 000
Q4 143  bar 143  bar 0  bar 000
 
2018 Q1 123  bar 119  bar 4  bar 400
Q2 110  bar 108  bar 2  bar 200
Q3 112  bar 112  bar 0  bar 000
Q4 144  bar 144  bar 0  bar 000
 
2019 Q1 149  bar 149  bar 0  bar 000
Q2 111  bar 109  bar 2  bar 200
Q3 158  bar 158  bar 0  bar 000
Q4 108  bar 106  bar 2  bar 200
 
2020 Q1 160  bar 160  bar 0  bar 000
Q2 107  bar 107  bar 0  bar 000
Q3 139  bar 139  bar 0  bar 000
Q4 149  bar 149  bar 0  bar 000
 
2021 Q1 235  bar 235  bar 0  bar 000
Q2 212  bar 212  bar 0  bar 000
Q3 212  bar 212  bar 0  bar 000
Q4 115  bar 115  bar 0  bar 000
 
2022 Q1 158  bar 158  bar 0  bar 000
Q2 108  bar 108  bar 0  bar 000
Q3 127  bar 127  bar 0  bar 000
Q4 92  bar 92  bar 0  bar 000
 
2023 Q1 54  bar 52  bar 2  bar 200
Q2 71  bar 69  bar 2  bar 200
Q3 67  bar 67  bar 0  bar 000
Q4 61  bar 61  bar 0  bar 000
 


Sources: STI: PopStats and STI: Colossus