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Bergen 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 107  bar 62  bar 45  bar 4437
Q2 141  bar 75  bar 66  bar 2064
Q3 115  bar 104  bar 11  bar 830
Q4 152  bar 131  bar 21  bar 1830
 
1998 Q1 101  bar 53  bar 48  bar 18030
Q2 71  bar 59  bar 12  bar 840
Q3 122  bar 78  bar 44  bar 8036
Q4 684  bar 99  bar 585  bar 320553
 
1999 Q1 126  bar 88  bar 38  bar 10028
Q2 142  bar 78  bar 64  bar 12448
Q3 108  bar 88  bar 20  bar 2000
Q4 76  bar 52  bar 24  bar 14010
 
2000 Q1 802  bar 41  bar 761  bar 200741
Q2 179  bar 91  bar 88  bar 18070
Q3 101  bar 51  bar 50  bar 12335
Q4 168  bar 122  bar 46  bar 22024
 
2001 Q1 120  bar 50  bar 70  bar 5839
Q2 137  bar 89  bar 48  bar 14259
Q3 149  bar 81  bar 68  bar 12056
Q4 198  bar 79  bar 119  bar 18893
 
2002 Q1 89  bar 59  bar 30  bar 2208
Q2 106  bar 74  bar 32  bar 20120
Q3 336  bar 101  bar 235  bar 207208
Q4 126  bar 84  bar 42  bar 24315
 
2003 Q1 51  bar 41  bar 10  bar 1000
Q2 75  bar 56  bar 19  bar 865
Q3 128  bar 86  bar 42  bar 4200
Q4 173  bar 71  bar 102  bar 50052
 
2004 Q1 59  bar 38  bar 21  bar 1605
Q2 175  bar 99  bar 76  bar 30046
Q3 152  bar 60  bar 92  bar 54632
Q4 173  bar 99  bar 74  bar 26345
 
2005 Q1 236  bar 49  bar 187  bar 164167
Q2 214  bar 157  bar 57  bar 44013
Q3 150  bar 84  bar 66  bar 36030
Q4 278  bar 91  bar 187  bar 424141
 
2006 Q1 147  bar 79  bar 68  bar 38030
Q2 228  bar 77  bar 151  bar 200131
Q3 192  bar 109  bar 83  bar 141455
Q4 217  bar 89  bar 128  bar 243101
 
2007 Q1 74  bar 57  bar 17  bar 1007
Q2 470  bar 96  bar 374  bar 280346
Q3 174  bar 72  bar 102  bar 181371
Q4 240  bar 82  bar 158  bar 220136
 
2008 Q1 106  bar 38  bar 68  bar 14054
Q2 115  bar 56  bar 59  bar 6746
Q3 65  bar 51  bar 14  bar 635
Q4 79  bar 64  bar 15  bar 807
 
2009 Q1 67  bar 40  bar 27  bar 4617
Q2 54  bar 48  bar 6  bar 600
Q3 53  bar 44  bar 9  bar 630
Q4 67  bar 48  bar 19  bar 4105
 
2010 Q1 69  bar 38  bar 31  bar 6322
Q2 73  bar 48  bar 25  bar 12310
Q3 102  bar 61  bar 41  bar 12326
Q4 93  bar 60  bar 33  bar 12417
 
2011 Q1 107  bar 34  bar 73  bar 12358
Q2 56  bar 38  bar 18  bar 8010
Q3 209  bar 30  bar 179  bar 146159
Q4 83  bar 45  bar 38  bar 20315
 
2012 Q1 55  bar 34  bar 21  bar 6015
Q2 132  bar 45  bar 87  bar 12075
Q3 557  bar 55  bar 502  bar 100492
Q4 135  bar 71  bar 64  bar 12646
 
2013 Q1 82  bar 43  bar 39  bar 8031
Q2 226  bar 71  bar 155  bar 246125
Q3 267  bar 94  bar 173  bar 83162
Q4 437  bar 86  bar 351  bar 103338
 
2014 Q1 340  bar 50  bar 290  bar 63281
Q2 174  bar 100  bar 74  bar 12656
Q3 356  bar 116  bar 240  bar 160224
Q4 132  bar 77  bar 55  bar 22033
 
2015 Q1 200  bar 75  bar 125  bar 86111
Q2 169  bar 82  bar 87  bar 24657
Q3 349  bar 62  bar 287  bar 160271
Q4 186  bar 68  bar 118  bar 180100
 
2016 Q1 115  bar 51  bar 64  bar 8650
Q2 133  bar 92  bar 41  bar 6035
Q3 116  bar 64  bar 52  bar 14335
Q4 135  bar 106  bar 29  bar 8021
 
2017 Q1 109  bar 74  bar 35  bar 14021
Q2 368  bar 83  bar 285  bar 100275
Q3 214  bar 49  bar 165  bar 164145
Q4 113  bar 60  bar 53  bar 16037
 
2018 Q1 98  bar 56  bar 42  bar 8034
Q2 99  bar 60  bar 39  bar 18318
Q3 258  bar 90  bar 168  bar 100158
Q4 244  bar 61  bar 183  bar 127164
 
2019 Q1 134  bar 65  bar 69  bar 14055
Q2 374  bar 66  bar 308  bar 167285
Q3 220  bar 55  bar 165  bar 1214139
Q4 203  bar 77  bar 126  bar 26118
 
2020 Q1 350  bar 121  bar 229  bar 243202
Q2 176  bar 42  bar 134  bar 123119
Q3 277  bar 105  bar 172  bar 2012140
Q4 227  bar 132  bar 95  bar 22370
 
2021 Q1 403  bar 192  bar 211  bar 1610185
Q2 429  bar 127  bar 302  bar 283271
Q3 307  bar 102  bar 205  bar 309166
Q4 235  bar 160  bar 75  bar 161346
 
2022 Q1 295  bar 90  bar 205  bar 366163
Q2 281  bar 132  bar 149  bar 203126
Q3 372  bar 205  bar 167  bar 226139
Q4 201  bar 113  bar 88  bar 24955
 
2023 Q1 481  bar 76  bar 405  bar 329364
Q2 183  bar 94  bar 89  bar 16370
Q3 213  bar 77  bar 136  bar 1811107
Q4 220  bar 105  bar 115  bar 261475
 


Sources: STI: PopStats and STI: Colossus