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Buncombe 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 83  bar 65  bar 18  bar 6012
Q2 157  bar 107  bar 50  bar 6044
Q3 81  bar 79  bar 2  bar 200
Q4 171  bar 91  bar 80  bar 141848
 
1998 Q1 47  bar 47  bar 0  bar 000
Q2 131  bar 110  bar 21  bar 498
Q3 114  bar 106  bar 8  bar 080
Q4 106  bar 76  bar 30  bar 16410
 
1999 Q1 97  bar 59  bar 38  bar 14240
Q2 124  bar 104  bar 20  bar 1280
Q3 102  bar 82  bar 20  bar 8012
Q4 77  bar 67  bar 10  bar 460
 
2000 Q1 94  bar 62  bar 32  bar 4028
Q2 79  bar 75  bar 4  bar 400
Q3 110  bar 85  bar 25  bar 2023
Q4 96  bar 81  bar 15  bar 870
 
2001 Q1 148  bar 66  bar 82  bar 0874
Q2 296  bar 110  bar 186  bar 64176
Q3 109  bar 77  bar 32  bar 14018
Q4 426  bar 106  bar 320  bar 1220288
 
2002 Q1 127  bar 77  bar 50  bar 6440
Q2 129  bar 107  bar 22  bar 2200
Q3 140  bar 132  bar 8  bar 440
Q4 114  bar 114  bar 0  bar 000
 
2003 Q1 98  bar 86  bar 12  bar 660
Q2 110  bar 110  bar 0  bar 000
Q3 110  bar 101  bar 9  bar 270
Q4 149  bar 145  bar 4  bar 040
 
2004 Q1 136  bar 134  bar 2  bar 200
Q2 144  bar 134  bar 10  bar 640
Q3 157  bar 152  bar 5  bar 230
Q4 149  bar 143  bar 6  bar 600
 
2005 Q1 275  bar 129  bar 146  bar 24140
Q2 145  bar 143  bar 2  bar 200
Q3 163  bar 143  bar 20  bar 4016
Q4 231  bar 221  bar 10  bar 208
 
2006 Q1 131  bar 127  bar 4  bar 040
Q2 170  bar 161  bar 9  bar 630
Q3 140  bar 126  bar 14  bar 1400
Q4 175  bar 161  bar 14  bar 0410
 
2007 Q1 144  bar 136  bar 8  bar 800
Q2 237  bar 161  bar 76  bar 44626
Q3 134  bar 124  bar 10  bar 046
Q4 135  bar 110  bar 25  bar 0817
 
2008 Q1 91  bar 91  bar 0  bar 000
Q2 328  bar 104  bar 224  bar 00224
Q3 125  bar 115  bar 10  bar 460
Q4 60  bar 58  bar 2  bar 200
 
2009 Q1 46  bar 40  bar 6  bar 006
Q2 163  bar 67  bar 96  bar 0096
Q3 47  bar 47  bar 0  bar 000
Q4 60  bar 60  bar 0  bar 000
 
2010 Q1 41  bar 41  bar 0  bar 000
Q2 45  bar 45  bar 0  bar 000
Q3 236  bar 37  bar 199  bar 00199
Q4 55  bar 43  bar 12  bar 048
 
2011 Q1 27  bar 27  bar 0  bar 000
Q2 34  bar 34  bar 0  bar 000
Q3 43  bar 43  bar 0  bar 000
Q4 46  bar 46  bar 0  bar 000
 
2012 Q1 36  bar 36  bar 0  bar 000
Q2 48  bar 46  bar 2  bar 200
Q3 51  bar 51  bar 0  bar 000
Q4 67  bar 67  bar 0  bar 000
 
2013 Q1 43  bar 43  bar 0  bar 000
Q2 67  bar 67  bar 0  bar 000
Q3 72  bar 72  bar 0  bar 000
Q4 69  bar 69  bar 0  bar 000
 
2014 Q1 67  bar 67  bar 0  bar 000
Q2 74  bar 74  bar 0  bar 000
Q3 72  bar 72  bar 0  bar 000
Q4 152  bar 97  bar 55  bar 0055
 
2015 Q1 79  bar 79  bar 0  bar 000
Q2 86  bar 81  bar 5  bar 005
Q3 116  bar 106  bar 10  bar 0010
Q4 95  bar 89  bar 6  bar 006
 
2016 Q1 80  bar 75  bar 5  bar 005
Q2 116  bar 111  bar 5  bar 005
Q3 110  bar 105  bar 5  bar 005
Q4 378  bar 125  bar 253  bar 00253
 
2017 Q1 93  bar 88  bar 5  bar 005
Q2 125  bar 92  bar 33  bar 0033
Q3 249  bar 116  bar 133  bar 80125
Q4 129  bar 124  bar 5  bar 005
 
2018 Q1 116  bar 111  bar 5  bar 005
Q2 123  bar 113  bar 10  bar 0010
Q3 110  bar 105  bar 5  bar 005
Q4 266  bar 185  bar 81  bar 0081
 
2019 Q1 115  bar 110  bar 5  bar 005
Q2 134  bar 128  bar 6  bar 006
Q3 115  bar 105  bar 10  bar 0010
Q4 158  bar 136  bar 22  bar 0022
 
2020 Q1 120  bar 113  bar 7  bar 007
Q2 520  bar 101  bar 419  bar 00419
Q3 149  bar 142  bar 7  bar 007
Q4 168  bar 163  bar 5  bar 005
 
2021 Q1 208  bar 116  bar 92  bar 0092
Q2 174  bar 166  bar 8  bar 008
Q3 150  bar 144  bar 6  bar 006
Q4 168  bar 161  bar 7  bar 007
 
2022 Q1 146  bar 136  bar 10  bar 0010
Q2 181  bar 141  bar 40  bar 0040
Q3 123  bar 112  bar 11  bar 0011
Q4 272  bar 133  bar 139  bar 00139
 
2023 Q1 276  bar 131  bar 145  bar 40141
Q2 137  bar 133  bar 4  bar 400
Q3 218  bar 99  bar 119  bar 00119
Q4 145  bar 135  bar 10  bar 0010
 


Sources: STI: PopStats and STI: Colossus