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Rockingham 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 128  bar 60  bar 68  bar 0464
Q2 165  bar 142  bar 23  bar 01211
Q3 170  bar 148  bar 22  bar 01210
Q4 134  bar 124  bar 10  bar 280
 
1998 Q1 118  bar 107  bar 11  bar 605
Q2 175  bar 169  bar 6  bar 240
Q3 186  bar 159  bar 27  bar 4230
Q4 125  bar 120  bar 5  bar 230
 
1999 Q1 220  bar 210  bar 10  bar 235
Q2 167  bar 151  bar 16  bar 4120
Q3 171  bar 151  bar 20  bar 1280
Q4 125  bar 120  bar 5  bar 230
 
2000 Q1 103  bar 103  bar 0  bar 000
Q2 145  bar 119  bar 26  bar 2024
Q3 135  bar 127  bar 8  bar 008
Q4 120  bar 116  bar 4  bar 400
 
2001 Q1 85  bar 85  bar 0  bar 000
Q2 196  bar 188  bar 8  bar 800
Q3 121  bar 117  bar 4  bar 400
Q4 148  bar 117  bar 31  bar 2029
 
2002 Q1 126  bar 117  bar 9  bar 405
Q2 110  bar 102  bar 8  bar 800
Q3 165  bar 141  bar 24  bar 0816
Q4 133  bar 111  bar 22  bar 6016
 
2003 Q1 71  bar 67  bar 4  bar 400
Q2 181  bar 126  bar 55  bar 161029
Q3 175  bar 132  bar 43  bar 121516
Q4 183  bar 100  bar 83  bar 4475
 
2004 Q1 155  bar 75  bar 80  bar 4472
Q2 174  bar 131  bar 43  bar 16819
Q3 162  bar 140  bar 22  bar 21010
Q4 175  bar 116  bar 59  bar 14738
 
2005 Q1 83  bar 62  bar 21  bar 1209
Q2 211  bar 117  bar 94  bar 161266
Q3 137  bar 95  bar 42  bar 4434
Q4 157  bar 90  bar 67  bar 21946
 
2006 Q1 95  bar 68  bar 27  bar 0027
Q2 112  bar 81  bar 31  bar 8419
Q3 74  bar 63  bar 11  bar 0011
Q4 104  bar 81  bar 23  bar 2813
 
2007 Q1 49  bar 49  bar 0  bar 000
Q2 97  bar 62  bar 35  bar 0332
Q3 101  bar 83  bar 18  bar 0711
Q4 216  bar 80  bar 136  bar 012124
 
2008 Q1 32  bar 30  bar 2  bar 200
Q2 67  bar 61  bar 6  bar 006
Q3 60  bar 43  bar 17  bar 0116
Q4 57  bar 42  bar 15  bar 4011
 
2009 Q1 16  bar 11  bar 5  bar 005
Q2 46  bar 32  bar 14  bar 0410
Q3 36  bar 32  bar 4  bar 040
Q4 56  bar 49  bar 7  bar 070
 
2010 Q1 29  bar 27  bar 2  bar 200
Q2 61  bar 59  bar 2  bar 200
Q3 43  bar 41  bar 2  bar 200
Q4 36  bar 36  bar 0  bar 000
 
2011 Q1 15  bar 12  bar 3  bar 030
Q2 51  bar 45  bar 6  bar 240
Q3 46  bar 42  bar 4  bar 040
Q4 54  bar 50  bar 4  bar 400
 
2012 Q1 54  bar 24  bar 30  bar 4026
Q2 42  bar 42  bar 0  bar 000
Q3 43  bar 43  bar 0  bar 000
Q4 101  bar 47  bar 54  bar 6048
 
2013 Q1 45  bar 45  bar 0  bar 000
Q2 46  bar 44  bar 2  bar 200
Q3 78  bar 76  bar 2  bar 200
Q4 73  bar 65  bar 8  bar 800
 
2014 Q1 40  bar 34  bar 6  bar 600
Q2 94  bar 78  bar 16  bar 448
Q3 166  bar 63  bar 103  bar 0994
Q4 105  bar 67  bar 38  bar 2036
 
2015 Q1 124  bar 124  bar 0  bar 000
Q2 80  bar 72  bar 8  bar 800
Q3 69  bar 59  bar 10  bar 235
Q4 171  bar 49  bar 122  bar 20120
 
2016 Q1 55  bar 40  bar 15  bar 645
Q2 76  bar 52  bar 24  bar 1086
Q3 76  bar 60  bar 16  bar 0313
Q4 87  bar 67  bar 20  bar 2018
 
2017 Q1 70  bar 65  bar 5  bar 005
Q2 70  bar 57  bar 13  bar 0013
Q3 144  bar 75  bar 69  bar 30039
Q4 120  bar 54  bar 66  bar 2064
 
2018 Q1 210  bar 18  bar 192  bar 160176
Q2 63  bar 59  bar 4  bar 400
Q3 135  bar 72  bar 63  bar 41247
Q4 87  bar 61  bar 26  bar 2024
 
2019 Q1 86  bar 58  bar 28  bar 4024
Q2 70  bar 55  bar 15  bar 1005
Q3 105  bar 62  bar 43  bar 2041
Q4 68  bar 54  bar 14  bar 806
 
2020 Q1 60  bar 52  bar 8  bar 206
Q2 57  bar 50  bar 7  bar 205
Q3 78  bar 67  bar 11  bar 605
Q4 75  bar 62  bar 13  bar 805
 
2021 Q1 73  bar 66  bar 7  bar 007
Q2 131  bar 76  bar 55  bar 01738
Q3 188  bar 51  bar 137  bar 00137
Q4 81  bar 62  bar 19  bar 2017
 
2022 Q1 42  bar 37  bar 5  bar 005
Q2 76  bar 63  bar 13  bar 247
Q3 58  bar 47  bar 11  bar 407
Q4 65  bar 58  bar 7  bar 205
 
2023 Q1 37  bar 33  bar 4  bar 400
Q2 86  bar 74  bar 12  bar 840
Q3 76  bar 76  bar 0  bar 000
Q4 99  bar 86  bar 13  bar 445
 


Sources: STI: PopStats and STI: Colossus