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Burlington 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 200  bar 175  bar 25  bar 0025
Q2 251  bar 201  bar 50  bar 0050
Q3 158  bar 158  bar 0  bar 000
Q4 193  bar 177  bar 16  bar 0016
 
1998 Q1 126  bar 116  bar 10  bar 208
Q2 226  bar 158  bar 68  bar 0068
Q3 229  bar 221  bar 8  bar 008
Q4 220  bar 220  bar 0  bar 000
 
1999 Q1 212  bar 164  bar 48  bar 0048
Q2 292  bar 214  bar 78  bar 0870
Q3 213  bar 189  bar 24  bar 0024
Q4 165  bar 165  bar 0  bar 000
 
2000 Q1 165  bar 125  bar 40  bar 0040
Q2 200  bar 184  bar 16  bar 0016
Q3 321  bar 153  bar 168  bar 00168
Q4 385  bar 198  bar 187  bar 055132
 
2001 Q1 126  bar 126  bar 0  bar 000
Q2 205  bar 192  bar 13  bar 0013
Q3 193  bar 193  bar 0  bar 000
Q4 251  bar 251  bar 0  bar 000
 
2002 Q1 170  bar 152  bar 18  bar 0018
Q2 231  bar 210  bar 21  bar 0021
Q3 214  bar 199  bar 15  bar 0312
Q4 227  bar 227  bar 0  bar 000
 
2003 Q1 124  bar 124  bar 0  bar 000
Q2 135  bar 120  bar 15  bar 0015
Q3 128  bar 125  bar 3  bar 030
Q4 163  bar 150  bar 13  bar 0310
 
2004 Q1 158  bar 58  bar 100  bar 00100
Q2 116  bar 116  bar 0  bar 000
Q3 104  bar 99  bar 5  bar 005
Q4 70  bar 59  bar 11  bar 605
 
2005 Q1 93  bar 88  bar 5  bar 005
Q2 170  bar 142  bar 28  bar 6022
Q3 107  bar 107  bar 0  bar 000
Q4 86  bar 86  bar 0  bar 000
 
2006 Q1 101  bar 86  bar 15  bar 609
Q2 80  bar 73  bar 7  bar 007
Q3 1,725  bar 92  bar 1,633  bar 19201,441
Q4 80  bar 80  bar 0  bar 000
 
2007 Q1 87  bar 81  bar 6  bar 600
Q2 80  bar 75  bar 5  bar 005
Q3 84  bar 81  bar 3  bar 030
Q4 71  bar 62  bar 9  bar 009
 
2008 Q1 72  bar 55  bar 17  bar 0017
Q2 75  bar 70  bar 5  bar 005
Q3 57  bar 52  bar 5  bar 005
Q4 123  bar 56  bar 67  bar 0067
 
2009 Q1 28  bar 23  bar 5  bar 005
Q2 31  bar 31  bar 0  bar 000
Q3 64  bar 51  bar 13  bar 0013
Q4 66  bar 56  bar 10  bar 0010
 
2010 Q1 41  bar 41  bar 0  bar 000
Q2 59  bar 48  bar 11  bar 0011
Q3 46  bar 27  bar 19  bar 0019
Q4 56  bar 32  bar 24  bar 0024
 
2011 Q1 56  bar 40  bar 16  bar 0016
Q2 32  bar 25  bar 7  bar 007
Q3 68  bar 28  bar 40  bar 0040
Q4 58  bar 25  bar 33  bar 0033
 
2012 Q1 39  bar 29  bar 10  bar 0010
Q2 91  bar 51  bar 40  bar 0040
Q3 58  bar 48  bar 10  bar 0010
Q4 94  bar 31  bar 63  bar 0063
 
2013 Q1 44  bar 34  bar 10  bar 0010
Q2 53  bar 48  bar 5  bar 005
Q3 74  bar 45  bar 29  bar 0029
Q4 116  bar 32  bar 84  bar 2082
 
2014 Q1 74  bar 26  bar 48  bar 0048
Q2 42  bar 37  bar 5  bar 005
Q3 129  bar 73  bar 56  bar 2054
Q4 46  bar 44  bar 2  bar 200
 
2015 Q1 54  bar 36  bar 18  bar 6012
Q2 67  bar 67  bar 0  bar 000
Q3 144  bar 51  bar 93  bar 0093
Q4 33  bar 28  bar 5  bar 005
 
2016 Q1 14  bar 14  bar 0  bar 000
Q2 78  bar 78  bar 0  bar 000
Q3 45  bar 45  bar 0  bar 000
Q4 64  bar 59  bar 5  bar 005
 
2017 Q1 82  bar 64  bar 18  bar 1800
Q2 54  bar 54  bar 0  bar 000
Q3 222  bar 142  bar 80  bar 0080
Q4 113  bar 38  bar 75  bar 0075
 
2018 Q1 71  bar 50  bar 21  bar 0021
Q2 94  bar 58  bar 36  bar 0036
Q3 43  bar 36  bar 7  bar 007
Q4 182  bar 95  bar 87  bar 0087
 
2019 Q1 230  bar 25  bar 205  bar 00205
Q2 504  bar 40  bar 464  bar 07457
Q3 175  bar 73  bar 102  bar 2397
Q4 79  bar 49  bar 30  bar 0030
 
2020 Q1 187  bar 97  bar 90  bar 2781
Q2 41  bar 41  bar 0  bar 000
Q3 167  bar 56  bar 111  bar 00111
Q4 197  bar 87  bar 110  bar 00110
 
2021 Q1 223  bar 76  bar 147  bar 00147
Q2 313  bar 105  bar 208  bar 00208
Q3 98  bar 88  bar 10  bar 0010
Q4 183  bar 79  bar 104  bar 00104
 
2022 Q1 138  bar 121  bar 17  bar 2015
Q2 255  bar 129  bar 126  bar 00126
Q3 260  bar 91  bar 169  bar 00169
Q4 100  bar 100  bar 0  bar 000
 
2023 Q1 93  bar 93  bar 0  bar 000
Q2 130  bar 110  bar 20  bar 0713
Q3 287  bar 94  bar 193  bar 00193
Q4 140  bar 107  bar 33  bar 6918
 


Sources: STI: PopStats and STI: Colossus