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Union 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 13  bar 8  bar 5  bar 230
Q2 19  bar 11  bar 8  bar 800
Q3 13  bar 9  bar 4  bar 400
Q4 25  bar 23  bar 2  bar 200
 
1998 Q1 43  bar 15  bar 28  bar 2800
Q2 21  bar 19  bar 2  bar 200
Q3 93  bar 85  bar 8  bar 260
Q4 26  bar 14  bar 12  bar 1200
 
1999 Q1 10  bar 6  bar 4  bar 400
Q2 61  bar 41  bar 20  bar 2000
Q3 48  bar 38  bar 10  bar 1000
Q4 44  bar 30  bar 14  bar 1400
 
2000 Q1 77  bar 31  bar 46  bar 22420
Q2 76  bar 40  bar 36  bar 3600
Q3 45  bar 9  bar 36  bar 16020
Q4 55  bar 15  bar 40  bar 4000
 
2001 Q1 35  bar 14  bar 21  bar 1830
Q2 56  bar 16  bar 40  bar 16024
Q3 29  bar 15  bar 14  bar 1400
Q4 70  bar 12  bar 58  bar 22036
 
2002 Q1 61  bar 9  bar 52  bar 40012
Q2 39  bar 16  bar 23  bar 1805
Q3 124  bar 50  bar 74  bar 4070
Q4 124  bar 15  bar 109  bar 56350
 
2003 Q1 108  bar 12  bar 96  bar 30066
Q2 46  bar 14  bar 32  bar 3200
Q3 229  bar 20  bar 209  bar 580151
Q4 88  bar 21  bar 67  bar 6007
 
2004 Q1 73  bar 3  bar 70  bar 54016
Q2 135  bar 55  bar 80  bar 32048
Q3 66  bar 24  bar 42  bar 4200
Q4 117  bar 26  bar 91  bar 46342
 
2005 Q1 84  bar 43  bar 41  bar 26015
Q2 105  bar 36  bar 69  bar 56310
Q3 114  bar 59  bar 55  bar 42310
Q4 123  bar 33  bar 90  bar 46044
 
2006 Q1 80  bar 51  bar 29  bar 1865
Q2 119  bar 70  bar 49  bar 4405
Q3 227  bar 40  bar 187  bar 360151
Q4 74  bar 41  bar 33  bar 2805
 
2007 Q1 89  bar 40  bar 49  bar 20029
Q2 106  bar 36  bar 70  bar 30634
Q3 165  bar 33  bar 132  bar 203109
Q4 84  bar 32  bar 52  bar 30022
 
2008 Q1 39  bar 22  bar 17  bar 6011
Q2 166  bar 36  bar 130  bar 20128
Q3 71  bar 44  bar 27  bar 14310
Q4 28  bar 22  bar 6  bar 600
 
2009 Q1 14  bar 12  bar 2  bar 200
Q2 22  bar 16  bar 6  bar 600
Q3 36  bar 20  bar 16  bar 6010
Q4 84  bar 19  bar 65  bar 6455
 
2010 Q1 31  bar 15  bar 16  bar 2014
Q2 40  bar 23  bar 17  bar 6011
Q3 50  bar 22  bar 28  bar 4024
Q4 28  bar 16  bar 12  bar 2010
 
2011 Q1 29  bar 16  bar 13  bar 2011
Q2 47  bar 16  bar 31  bar 6322
Q3 48  bar 13  bar 35  bar 0629
Q4 72  bar 19  bar 53  bar 2348
 
2012 Q1 51  bar 18  bar 33  bar 4029
Q2 58  bar 29  bar 29  bar 4421
Q3 67  bar 23  bar 44  bar 4337
Q4 33  bar 21  bar 12  bar 2010
 
2013 Q1 67  bar 32  bar 35  bar 6029
Q2 41  bar 21  bar 20  bar 6014
Q3 159  bar 111  bar 48  bar 8337
Q4 60  bar 26  bar 34  bar 4327
 
2014 Q1 71  bar 50  bar 21  bar 0615
Q2 57  bar 35  bar 22  bar 4018
Q3 265  bar 29  bar 236  bar 100226
Q4 55  bar 42  bar 13  bar 805
 
2015 Q1 202  bar 20  bar 182  bar 20180
Q2 189  bar 31  bar 158  bar 60152
Q3 84  bar 58  bar 26  bar 6020
Q4 315  bar 38  bar 277  bar 60271
 
2016 Q1 143  bar 26  bar 117  bar 63108
Q2 215  bar 28  bar 187  bar 220165
Q3 119  bar 33  bar 86  bar 14072
Q4 59  bar 33  bar 26  bar 16010
 
2017 Q1 109  bar 19  bar 90  bar 10080
Q2 58  bar 31  bar 27  bar 6021
Q3 274  bar 38  bar 236  bar 80228
Q4 38  bar 23  bar 15  bar 2013
 
2018 Q1 156  bar 32  bar 124  bar 240100
Q2 61  bar 33  bar 28  bar 12016
Q3 286  bar 15  bar 271  bar 20269
Q4 261  bar 29  bar 232  bar 100222
 
2019 Q1 46  bar 20  bar 26  bar 10016
Q2 54  bar 20  bar 34  bar 16315
Q3 155  bar 25  bar 130  bar 300100
Q4 629  bar 18  bar 611  bar 344573
 
2020 Q1 217  bar 26  bar 191  bar 83180
Q2 133  bar 10  bar 123  bar 03120
Q3 184  bar 22  bar 162  bar 126144
Q4 176  bar 22  bar 154  bar 100144
 
2021 Q1 164  bar 15  bar 149  bar 180131
Q2 357  bar 13  bar 344  bar 60338
Q3 485  bar 31  bar 454  bar 60448
Q4 105  bar 22  bar 83  bar 6077
 
2022 Q1 214  bar 19  bar 195  bar 26187
Q2 241  bar 21  bar 220  bar 03217
Q3 371  bar 30  bar 341  bar 40337
Q4 117  bar 14  bar 103  bar 6394
 
2023 Q1 122  bar 21  bar 101  bar 22079
Q2 94  bar 32  bar 62  bar 8054
Q3 224  bar 14  bar 210  bar 40206
Q4 191  bar 17  bar 174  bar 60168
 


Sources: STI: PopStats and STI: Colossus