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Flathead 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 6  bar 6  bar 0  bar 000
Q2 35  bar 33  bar 2  bar 200
Q3 20  bar 16  bar 4  bar 040
Q4 20  bar 18  bar 2  bar 200
 
1998 Q1 9  bar 9  bar 0  bar 000
Q2 21  bar 17  bar 4  bar 400
Q3 17  bar 15  bar 2  bar 200
Q4 23  bar 13  bar 10  bar 208
 
1999 Q1 11  bar 1  bar 10  bar 1000
Q2 18  bar 18  bar 0  bar 000
Q3 27  bar 25  bar 2  bar 200
Q4 36  bar 18  bar 18  bar 1008
 
2000 Q1 6  bar 4  bar 2  bar 200
Q2 26  bar 22  bar 4  bar 040
Q3 26  bar 22  bar 4  bar 400
Q4 25  bar 18  bar 7  bar 430
 
2001 Q1 16  bar 14  bar 2  bar 200
Q2 28  bar 18  bar 10  bar 1000
Q3 28  bar 19  bar 9  bar 630
Q4 22  bar 14  bar 8  bar 800
 
2002 Q1 14  bar 14  bar 0  bar 000
Q2 39  bar 32  bar 7  bar 430
Q3 31  bar 27  bar 4  bar 400
Q4 45  bar 39  bar 6  bar 240
 
2003 Q1 27  bar 21  bar 6  bar 060
Q2 58  bar 43  bar 15  bar 1005
Q3 69  bar 36  bar 33  bar 6270
Q4 38  bar 28  bar 10  bar 640
 
2004 Q1 25  bar 17  bar 8  bar 800
Q2 42  bar 28  bar 14  bar 806
Q3 73  bar 53  bar 20  bar 2810
Q4 40  bar 26  bar 14  bar 2012
 
2005 Q1 36  bar 32  bar 4  bar 400
Q2 59  bar 42  bar 17  bar 0017
Q3 73  bar 31  bar 42  bar 10032
Q4 76  bar 45  bar 31  bar 0031
 
2006 Q1 19  bar 17  bar 2  bar 200
Q2 36  bar 26  bar 10  bar 208
Q3 32  bar 30  bar 2  bar 200
Q4 50  bar 30  bar 20  bar 8012
 
2007 Q1 20  bar 20  bar 0  bar 000
Q2 37  bar 17  bar 20  bar 6014
Q3 16  bar 16  bar 0  bar 000
Q4 59  bar 22  bar 37  bar 6031
 
2008 Q1 18  bar 16  bar 2  bar 200
Q2 25  bar 17  bar 8  bar 800
Q3 16  bar 14  bar 2  bar 200
Q4 5  bar 5  bar 0  bar 000
 
2009 Q1 6  bar 0  bar 6  bar 600
Q2 4  bar 4  bar 0  bar 000
Q3 8  bar 8  bar 0  bar 000
Q4 11  bar 11  bar 0  bar 000
 
2010 Q1 2  bar 2  bar 0  bar 000
Q2 21  bar 21  bar 0  bar 000
Q3 5  bar 5  bar 0  bar 000
Q4 11  bar 5  bar 6  bar 006
 
2011 Q1 4  bar 4  bar 0  bar 000
Q2 10  bar 10  bar 0  bar 000
Q3 9  bar 9  bar 0  bar 000
Q4 5  bar 5  bar 0  bar 000
 
2012 Q1 4  bar 4  bar 0  bar 000
Q2 10  bar 10  bar 0  bar 000
Q3 9  bar 7  bar 2  bar 200
Q4 18  bar 16  bar 2  bar 200
 
2013 Q1 11  bar 11  bar 0  bar 000
Q2 11  bar 11  bar 0  bar 000
Q3 26  bar 26  bar 0  bar 000
Q4 30  bar 28  bar 2  bar 200
 
2014 Q1 11  bar 11  bar 0  bar 000
Q2 27  bar 23  bar 4  bar 400
Q3 20  bar 20  bar 0  bar 000
Q4 14  bar 14  bar 0  bar 000
 
2015 Q1 11  bar 5  bar 6  bar 240
Q2 9  bar 9  bar 0  bar 000
Q3 13  bar 9  bar 4  bar 400
Q4 15  bar 15  bar 0  bar 000
 
2016 Q1 11  bar 7  bar 4  bar 400
Q2 28  bar 24  bar 4  bar 040
Q3 17  bar 17  bar 0  bar 000
Q4 15  bar 11  bar 4  bar 400
 
2017 Q1 6  bar 6  bar 0  bar 000
Q2 24  bar 22  bar 2  bar 200
Q3 20  bar 20  bar 0  bar 000
Q4 56  bar 17  bar 39  bar 8031
 
2018 Q1 14  bar 10  bar 4  bar 040
Q2 32  bar 25  bar 7  bar 430
Q3 35  bar 19  bar 16  bar 0016
Q4 27  bar 10  bar 17  bar 449
 
2019 Q1 29  bar 27  bar 2  bar 200
Q2 46  bar 18  bar 28  bar 4024
Q3 48  bar 25  bar 23  bar 6170
Q4 41  bar 18  bar 23  bar 8312
 
2020 Q1 15  bar 2  bar 13  bar 670
Q2 33  bar 21  bar 12  bar 237
Q3 80  bar 54  bar 26  bar 2024
Q4 66  bar 35  bar 31  bar 0031
 
2021 Q1 23  bar 17  bar 6  bar 240
Q2 141  bar 45  bar 96  bar 0096
Q3 120  bar 43  bar 77  bar 2372
Q4 86  bar 40  bar 46  bar 6040
 
2022 Q1 22  bar 22  bar 0  bar 000
Q2 51  bar 27  bar 24  bar 0024
Q3 54  bar 24  bar 30  bar 0030
Q4 119  bar 27  bar 92  bar 0092
 
2023 Q1 47  bar 11  bar 36  bar 0036
Q2 41  bar 10  bar 31  bar 0031
Q3 257  bar 24  bar 233  bar 04229
Q4 41  bar 17  bar 24  bar 0024
 


Sources: STI: PopStats and STI: Colossus