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Cape May 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 73  bar 37  bar 36  bar 3600
Q2 49  bar 35  bar 14  bar 1400
Q3 55  bar 39  bar 16  bar 1600
Q4 93  bar 59  bar 34  bar 3400
 
1998 Q1 69  bar 33  bar 36  bar 3600
Q2 97  bar 47  bar 50  bar 5000
Q3 62  bar 48  bar 14  bar 1400
Q4 144  bar 82  bar 62  bar 52010
 
1999 Q1 143  bar 57  bar 86  bar 76010
Q2 83  bar 45  bar 38  bar 24410
Q3 67  bar 43  bar 24  bar 2400
Q4 187  bar 111  bar 76  bar 7600
 
2000 Q1 114  bar 65  bar 49  bar 4630
Q2 74  bar 54  bar 20  bar 2000
Q3 78  bar 57  bar 21  bar 1407
Q4 137  bar 99  bar 38  bar 3440
 
2001 Q1 106  bar 60  bar 46  bar 4600
Q2 126  bar 80  bar 46  bar 4600
Q3 99  bar 59  bar 40  bar 3046
Q4 167  bar 82  bar 85  bar 72013
 
2002 Q1 180  bar 83  bar 97  bar 9430
Q2 120  bar 57  bar 63  bar 40023
Q3 123  bar 60  bar 63  bar 46413
Q4 160  bar 88  bar 72  bar 5886
 
2003 Q1 138  bar 78  bar 60  bar 42414
Q2 94  bar 65  bar 29  bar 2630
Q3 126  bar 73  bar 53  bar 40013
Q4 252  bar 174  bar 78  bar 68010
 
2004 Q1 180  bar 78  bar 102  bar 601329
Q2 150  bar 83  bar 67  bar 32431
Q3 146  bar 94  bar 52  bar 161521
Q4 173  bar 84  bar 89  bar 72710
 
2005 Q1 295  bar 81  bar 214  bar 6220132
Q2 184  bar 118  bar 66  bar 282018
Q3 156  bar 63  bar 93  bar 38748
Q4 234  bar 139  bar 95  bar 521231
 
2006 Q1 193  bar 98  bar 95  bar 521231
Q2 111  bar 71  bar 40  bar 16186
Q3 130  bar 30  bar 100  bar 221563
Q4 97  bar 87  bar 10  bar 1000
 
2007 Q1 145  bar 46  bar 99  bar 12483
Q2 176  bar 33  bar 143  bar 64133
Q3 80  bar 75  bar 5  bar 230
Q4 74  bar 44  bar 30  bar 3000
 
2008 Q1 52  bar 42  bar 10  bar 1000
Q2 42  bar 33  bar 9  bar 405
Q3 33  bar 27  bar 6  bar 060
Q4 54  bar 42  bar 12  bar 1200
 
2009 Q1 20  bar 14  bar 6  bar 600
Q2 28  bar 24  bar 4  bar 400
Q3 16  bar 12  bar 4  bar 400
Q4 29  bar 25  bar 4  bar 400
 
2010 Q1 20  bar 12  bar 8  bar 800
Q2 24  bar 18  bar 6  bar 600
Q3 23  bar 15  bar 8  bar 800
Q4 48  bar 31  bar 17  bar 1430
 
2011 Q1 49  bar 35  bar 14  bar 1400
Q2 30  bar 28  bar 2  bar 200
Q3 22  bar 22  bar 0  bar 000
Q4 44  bar 26  bar 18  bar 1800
 
2012 Q1 35  bar 21  bar 14  bar 1400
Q2 29  bar 21  bar 8  bar 800
Q3 33  bar 21  bar 12  bar 1200
Q4 55  bar 45  bar 10  bar 1000
 
2013 Q1 48  bar 32  bar 16  bar 6010
Q2 52  bar 41  bar 11  bar 830
Q3 40  bar 24  bar 16  bar 1600
Q4 88  bar 71  bar 17  bar 1430
 
2014 Q1 77  bar 46  bar 31  bar 2605
Q2 36  bar 21  bar 15  bar 1230
Q3 48  bar 40  bar 8  bar 800
Q4 73  bar 53  bar 20  bar 1235
 
2015 Q1 59  bar 41  bar 18  bar 1800
Q2 50  bar 29  bar 21  bar 8013
Q3 48  bar 39  bar 9  bar 405
Q4 78  bar 62  bar 16  bar 1600
 
2016 Q1 55  bar 40  bar 15  bar 1230
Q2 48  bar 26  bar 22  bar 12010
Q3 32  bar 26  bar 6  bar 600
Q4 70  bar 54  bar 16  bar 1600
 
2017 Q1 108  bar 79  bar 29  bar 18011
Q2 73  bar 54  bar 19  bar 1009
Q3 40  bar 38  bar 2  bar 200
Q4 104  bar 42  bar 62  bar 6200
 
2018 Q1 43  bar 28  bar 15  bar 1230
Q2 28  bar 22  bar 6  bar 600
Q3 34  bar 30  bar 4  bar 400
Q4 89  bar 57  bar 32  bar 3200
 
2019 Q1 58  bar 30  bar 28  bar 18010
Q2 50  bar 32  bar 18  bar 4410
Q3 54  bar 37  bar 17  bar 1430
Q4 92  bar 68  bar 24  bar 14100
 
2020 Q1 75  bar 44  bar 31  bar 2605
Q2 20  bar 18  bar 2  bar 200
Q3 56  bar 50  bar 6  bar 600
Q4 92  bar 57  bar 35  bar 16190
 
2021 Q1 107  bar 65  bar 42  bar 32100
Q2 72  bar 62  bar 10  bar 1000
Q3 63  bar 47  bar 16  bar 1600
Q4 87  bar 79  bar 8  bar 800
 
2022 Q1 69  bar 55  bar 14  bar 1400
Q2 61  bar 43  bar 18  bar 1440
Q3 49  bar 35  bar 14  bar 860
Q4 72  bar 53  bar 19  bar 1090
 
2023 Q1 74  bar 58  bar 16  bar 1600
Q2 51  bar 35  bar 16  bar 835
Q3 70  bar 46  bar 24  bar 1635
Q4 84  bar 52  bar 32  bar 12200
 


Sources: STI: PopStats and STI: Colossus