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Ocean 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 243  bar 243  bar 0  bar 000
Q2 267  bar 267  bar 0  bar 000
Q3 296  bar 296  bar 0  bar 000
Q4 306  bar 306  bar 0  bar 000
 
1998 Q1 281  bar 277  bar 4  bar 400
Q2 256  bar 256  bar 0  bar 000
Q3 361  bar 361  bar 0  bar 000
Q4 419  bar 346  bar 73  bar 0073
 
1999 Q1 415  bar 415  bar 0  bar 000
Q2 320  bar 320  bar 0  bar 000
Q3 343  bar 343  bar 0  bar 000
Q4 327  bar 321  bar 6  bar 006
 
2000 Q1 463  bar 258  bar 205  bar 00205
Q2 421  bar 385  bar 36  bar 0036
Q3 467  bar 431  bar 36  bar 0036
Q4 389  bar 383  bar 6  bar 600
 
2001 Q1 315  bar 313  bar 2  bar 200
Q2 264  bar 261  bar 3  bar 030
Q3 367  bar 323  bar 44  bar 2339
Q4 402  bar 375  bar 27  bar 2025
 
2002 Q1 233  bar 233  bar 0  bar 000
Q2 258  bar 258  bar 0  bar 000
Q3 347  bar 347  bar 0  bar 000
Q4 313  bar 309  bar 4  bar 400
 
2003 Q1 728  bar 405  bar 323  bar 00323
Q2 212  bar 212  bar 0  bar 000
Q3 408  bar 377  bar 31  bar 0328
Q4 483  bar 250  bar 233  bar 012221
 
2004 Q1 249  bar 247  bar 2  bar 200
Q2 376  bar 374  bar 2  bar 200
Q3 357  bar 224  bar 133  bar 00133
Q4 254  bar 230  bar 24  bar 10014
 
2005 Q1 223  bar 215  bar 8  bar 800
Q2 244  bar 242  bar 2  bar 200
Q3 269  bar 263  bar 6  bar 060
Q4 246  bar 232  bar 14  bar 2012
 
2006 Q1 264  bar 244  bar 20  bar 4016
Q2 167  bar 162  bar 5  bar 005
Q3 181  bar 178  bar 3  bar 030
Q4 159  bar 154  bar 5  bar 005
 
2007 Q1 144  bar 132  bar 12  bar 2010
Q2 130  bar 100  bar 30  bar 0030
Q3 135  bar 129  bar 6  bar 006
Q4 230  bar 144  bar 86  bar 0860
 
2008 Q1 155  bar 142  bar 13  bar 238
Q2 81  bar 81  bar 0  bar 000
Q3 147  bar 62  bar 85  bar 0085
Q4 142  bar 142  bar 0  bar 000
 
2009 Q1 57  bar 43  bar 14  bar 0014
Q2 83  bar 83  bar 0  bar 000
Q3 73  bar 73  bar 0  bar 000
Q4 101  bar 87  bar 14  bar 0014
 
2010 Q1 96  bar 83  bar 13  bar 0013
Q2 75  bar 75  bar 0  bar 000
Q3 58  bar 56  bar 2  bar 200
Q4 85  bar 69  bar 16  bar 2014
 
2011 Q1 76  bar 76  bar 0  bar 000
Q2 45  bar 45  bar 0  bar 000
Q3 46  bar 46  bar 0  bar 000
Q4 124  bar 76  bar 48  bar 0048
 
2012 Q1 61  bar 61  bar 0  bar 000
Q2 133  bar 113  bar 20  bar 2000
Q3 107  bar 67  bar 40  bar 4000
Q4 143  bar 137  bar 6  bar 600
 
2013 Q1 109  bar 77  bar 32  bar 8024
Q2 111  bar 105  bar 6  bar 600
Q3 195  bar 157  bar 38  bar 8030
Q4 322  bar 288  bar 34  bar 24010
 
2014 Q1 239  bar 221  bar 18  bar 1800
Q2 238  bar 235  bar 3  bar 030
Q3 242  bar 238  bar 4  bar 400
Q4 243  bar 227  bar 16  bar 808
 
2015 Q1 183  bar 149  bar 34  bar 12022
Q2 259  bar 193  bar 66  bar 0066
Q3 264  bar 264  bar 0  bar 000
Q4 187  bar 183  bar 4  bar 400
 
2016 Q1 189  bar 99  bar 90  bar 0090
Q2 147  bar 147  bar 0  bar 000
Q3 171  bar 171  bar 0  bar 000
Q4 182  bar 140  bar 42  bar 2040
 
2017 Q1 308  bar 308  bar 0  bar 000
Q2 173  bar 169  bar 4  bar 400
Q3 221  bar 221  bar 0  bar 000
Q4 379  bar 284  bar 95  bar 4091
 
2018 Q1 205  bar 167  bar 38  bar 0038
Q2 273  bar 188  bar 85  bar 4081
Q3 137  bar 137  bar 0  bar 000
Q4 223  bar 204  bar 19  bar 1630
 
2019 Q1 193  bar 161  bar 32  bar 8024
Q2 184  bar 158  bar 26  bar 1808
Q3 118  bar 105  bar 13  bar 805
Q4 203  bar 199  bar 4  bar 400
 
2020 Q1 297  bar 221  bar 76  bar 21460
Q2 170  bar 98  bar 72  bar 2070
Q3 289  bar 282  bar 7  bar 205
Q4 291  bar 285  bar 6  bar 600
 
2021 Q1 216  bar 216  bar 0  bar 000
Q2 405  bar 243  bar 162  bar 20160
Q3 271  bar 234  bar 37  bar 4033
Q4 400  bar 298  bar 102  bar 18084
 
2022 Q1 333  bar 272  bar 61  bar 123019
Q2 368  bar 260  bar 108  bar 101979
Q3 390  bar 349  bar 41  bar 6035
Q4 182  bar 171  bar 11  bar 605
 
2023 Q1 284  bar 252  bar 32  bar 3200
Q2 256  bar 224  bar 32  bar 6026
Q3 272  bar 172  bar 100  bar 2098
Q4 343  bar 255  bar 88  bar 78010
 


Sources: STI: PopStats and STI: Colossus