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Cumberland 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 67  bar 53  bar 14  bar 1400
Q2 116  bar 112  bar 4  bar 400
Q3 106  bar 106  bar 0  bar 000
Q4 105  bar 105  bar 0  bar 000
 
1998 Q1 54  bar 54  bar 0  bar 000
Q2 127  bar 113  bar 14  bar 1400
Q3 269  bar 143  bar 126  bar 00126
Q4 130  bar 114  bar 16  bar 0160
 
1999 Q1 48  bar 48  bar 0  bar 000
Q2 161  bar 157  bar 4  bar 400
Q3 126  bar 124  bar 2  bar 200
Q4 127  bar 127  bar 0  bar 000
 
2000 Q1 78  bar 78  bar 0  bar 000
Q2 138  bar 134  bar 4  bar 040
Q3 140  bar 140  bar 0  bar 000
Q4 108  bar 102  bar 6  bar 600
 
2001 Q1 111  bar 104  bar 7  bar 070
Q2 115  bar 109  bar 6  bar 600
Q3 156  bar 126  bar 30  bar 6024
Q4 168  bar 128  bar 40  bar 0400
 
2002 Q1 117  bar 105  bar 12  bar 2010
Q2 143  bar 137  bar 6  bar 600
Q3 288  bar 152  bar 136  bar 00136
Q4 126  bar 124  bar 2  bar 200
 
2003 Q1 65  bar 61  bar 4  bar 040
Q2 141  bar 135  bar 6  bar 600
Q3 174  bar 164  bar 10  bar 1000
Q4 126  bar 118  bar 8  bar 440
 
2004 Q1 93  bar 89  bar 4  bar 400
Q2 113  bar 113  bar 0  bar 000
Q3 128  bar 126  bar 2  bar 200
Q4 120  bar 116  bar 4  bar 400
 
2005 Q1 76  bar 76  bar 0  bar 000
Q2 178  bar 131  bar 47  bar 4043
Q3 130  bar 112  bar 18  bar 1800
Q4 146  bar 108  bar 38  bar 2036
 
2006 Q1 44  bar 40  bar 4  bar 400
Q2 156  bar 138  bar 18  bar 468
Q3 129  bar 115  bar 14  bar 437
Q4 90  bar 66  bar 24  bar 2040
 
2007 Q1 59  bar 59  bar 0  bar 000
Q2 109  bar 71  bar 38  bar 4430
Q3 115  bar 99  bar 16  bar 6010
Q4 117  bar 96  bar 21  bar 0021
 
2008 Q1 44  bar 38  bar 6  bar 600
Q2 60  bar 58  bar 2  bar 200
Q3 53  bar 51  bar 2  bar 200
Q4 46  bar 39  bar 7  bar 430
 
2009 Q1 18  bar 18  bar 0  bar 000
Q2 34  bar 32  bar 2  bar 200
Q3 64  bar 64  bar 0  bar 000
Q4 52  bar 52  bar 0  bar 000
 
2010 Q1 21  bar 21  bar 0  bar 000
Q2 53  bar 53  bar 0  bar 000
Q3 58  bar 54  bar 4  bar 040
Q4 53  bar 51  bar 2  bar 200
 
2011 Q1 19  bar 19  bar 0  bar 000
Q2 25  bar 25  bar 0  bar 000
Q3 66  bar 41  bar 25  bar 0025
Q4 37  bar 37  bar 0  bar 000
 
2012 Q1 22  bar 22  bar 0  bar 000
Q2 56  bar 56  bar 0  bar 000
Q3 71  bar 69  bar 2  bar 200
Q4 65  bar 51  bar 14  bar 0014
 
2013 Q1 29  bar 29  bar 0  bar 000
Q2 154  bar 58  bar 96  bar 2094
Q3 75  bar 67  bar 8  bar 440
Q4 90  bar 84  bar 6  bar 600
 
2014 Q1 52  bar 49  bar 3  bar 030
Q2 86  bar 69  bar 17  bar 4013
Q3 81  bar 60  bar 21  bar 0318
Q4 60  bar 52  bar 8  bar 008
 
2015 Q1 41  bar 30  bar 11  bar 0011
Q2 65  bar 51  bar 14  bar 4010
Q3 110  bar 73  bar 37  bar 0037
Q4 66  bar 59  bar 7  bar 205
 
2016 Q1 35  bar 30  bar 5  bar 230
Q2 103  bar 69  bar 34  bar 4030
Q3 114  bar 64  bar 50  bar 2048
Q4 129  bar 66  bar 63  bar 2061
 
2017 Q1 74  bar 41  bar 33  bar 2031
Q2 154  bar 87  bar 67  bar 2065
Q3 70  bar 64  bar 6  bar 006
Q4 107  bar 59  bar 48  bar 21234
 
2018 Q1 56  bar 49  bar 7  bar 007
Q2 133  bar 73  bar 60  bar 0060
Q3 147  bar 68  bar 79  bar 4471
Q4 84  bar 61  bar 23  bar 6314
 
2019 Q1 189  bar 58  bar 131  bar 20129
Q2 90  bar 76  bar 14  bar 1400
Q3 113  bar 48  bar 65  bar 2063
Q4 145  bar 56  bar 89  bar 4085
 
2020 Q1 71  bar 29  bar 42  bar 2040
Q2 221  bar 60  bar 161  bar 20159
Q3 163  bar 83  bar 80  bar 4076
Q4 215  bar 102  bar 113  bar 14099
 
2021 Q1 198  bar 57  bar 141  bar 140127
Q2 90  bar 80  bar 10  bar 1000
Q3 147  bar 107  bar 40  bar 12028
Q4 96  bar 92  bar 4  bar 400
 
2022 Q1 182  bar 76  bar 106  bar 60100
Q2 160  bar 76  bar 84  bar 6078
Q3 108  bar 72  bar 36  bar 8028
Q4 104  bar 66  bar 38  bar 4331
 
2023 Q1 67  bar 53  bar 14  bar 860
Q2 115  bar 82  bar 33  bar 8322
Q3 121  bar 63  bar 58  bar 10048
Q4 84  bar 70  bar 14  bar 437
 


Sources: STI: PopStats and STI: Colossus