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New Hanover 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 228  bar 174  bar 54  bar 0054
Q2 334  bar 334  bar 0  bar 000
Q3 178  bar 138  bar 40  bar 0040
Q4 574  bar 157  bar 417  bar 00417
 
1998 Q1 122  bar 118  bar 4  bar 400
Q2 259  bar 193  bar 66  bar 10056
Q3 179  bar 151  bar 28  bar 0424
Q4 147  bar 135  bar 12  bar 408
 
1999 Q1 138  bar 136  bar 2  bar 200
Q2 157  bar 133  bar 24  bar 4416
Q3 177  bar 153  bar 24  bar 4020
Q4 178  bar 110  bar 68  bar 4064
 
2000 Q1 313  bar 113  bar 200  bar 00200
Q2 126  bar 114  bar 12  bar 0012
Q3 90  bar 90  bar 0  bar 000
Q4 113  bar 97  bar 16  bar 0016
 
2001 Q1 279  bar 103  bar 176  bar 00176
Q2 324  bar 124  bar 200  bar 00200
Q3 160  bar 158  bar 2  bar 200
Q4 134  bar 134  bar 0  bar 000
 
2002 Q1 141  bar 127  bar 14  bar 680
Q2 192  bar 188  bar 4  bar 040
Q3 153  bar 125  bar 28  bar 0424
Q4 153  bar 112  bar 41  bar 2039
 
2003 Q1 330  bar 148  bar 182  bar 00182
Q2 254  bar 144  bar 110  bar 40106
Q3 184  bar 152  bar 32  bar 0032
Q4 170  bar 168  bar 2  bar 200
 
2004 Q1 272  bar 182  bar 90  bar 4086
Q2 716  bar 276  bar 440  bar 412424
Q3 191  bar 181  bar 10  bar 406
Q4 246  bar 166  bar 80  bar 20060
 
2005 Q1 225  bar 191  bar 34  bar 3400
Q2 296  bar 240  bar 56  bar 16040
Q3 336  bar 166  bar 170  bar 260144
Q4 238  bar 182  bar 56  bar 20432
 
2006 Q1 219  bar 187  bar 32  bar 2030
Q2 156  bar 126  bar 30  bar 01218
Q3 132  bar 108  bar 24  bar 0024
Q4 97  bar 97  bar 0  bar 000
 
2007 Q1 168  bar 120  bar 48  bar 0345
Q2 238  bar 86  bar 152  bar 20150
Q3 182  bar 72  bar 110  bar 00110
Q4 73  bar 73  bar 0  bar 000
 
2008 Q1 106  bar 48  bar 58  bar 2848
Q2 138  bar 66  bar 72  bar 4068
Q3 66  bar 64  bar 2  bar 200
Q4 38  bar 36  bar 2  bar 200
 
2009 Q1 71  bar 27  bar 44  bar 2042
Q2 24  bar 24  bar 0  bar 000
Q3 51  bar 51  bar 0  bar 000
Q4 4  bar 4  bar 0  bar 000
 
2010 Q1 57  bar 43  bar 14  bar 0311
Q2 39  bar 33  bar 6  bar 006
Q3 47  bar 44  bar 3  bar 030
Q4 30  bar 28  bar 2  bar 200
 
2011 Q1 27  bar 11  bar 16  bar 0016
Q2 42  bar 42  bar 0  bar 000
Q3 191  bar 35  bar 156  bar 00156
Q4 27  bar 27  bar 0  bar 000
 
2012 Q1 327  bar 39  bar 288  bar 20286
Q2 68  bar 68  bar 0  bar 000
Q3 330  bar 77  bar 253  bar 00253
Q4 64  bar 64  bar 0  bar 000
 
2013 Q1 79  bar 79  bar 0  bar 000
Q2 193  bar 81  bar 112  bar 00112
Q3 80  bar 80  bar 0  bar 000
Q4 134  bar 92  bar 42  bar 0042
 
2014 Q1 202  bar 62  bar 140  bar 00140
Q2 184  bar 91  bar 93  bar 0093
Q3 68  bar 68  bar 0  bar 000
Q4 74  bar 74  bar 0  bar 000
 
2015 Q1 211  bar 59  bar 152  bar 20150
Q2 59  bar 57  bar 2  bar 200
Q3 88  bar 88  bar 0  bar 000
Q4 182  bar 106  bar 76  bar 7600
 
2016 Q1 192  bar 71  bar 121  bar 00121
Q2 243  bar 99  bar 144  bar 00144
Q3 78  bar 78  bar 0  bar 000
Q4 146  bar 103  bar 43  bar 0043
 
2017 Q1 102  bar 74  bar 28  bar 2800
Q2 145  bar 145  bar 0  bar 000
Q3 118  bar 118  bar 0  bar 000
Q4 449  bar 129  bar 320  bar 00320
 
2018 Q1 102  bar 102  bar 0  bar 000
Q2 145  bar 141  bar 4  bar 400
Q3 103  bar 103  bar 0  bar 000
Q4 353  bar 79  bar 274  bar 020254
 
2019 Q1 366  bar 79  bar 287  bar 00287
Q2 110  bar 110  bar 0  bar 000
Q3 124  bar 100  bar 24  bar 0024
Q4 220  bar 186  bar 34  bar 0034
 
2020 Q1 111  bar 95  bar 16  bar 0016
Q2 156  bar 142  bar 14  bar 0014
Q3 128  bar 128  bar 0  bar 000
Q4 122  bar 88  bar 34  bar 0034
 
2021 Q1 118  bar 112  bar 6  bar 600
Q2 483  bar 127  bar 356  bar 288320
Q3 266  bar 136  bar 130  bar 20128
Q4 275  bar 142  bar 133  bar 20131
 
2022 Q1 115  bar 105  bar 10  bar 280
Q2 306  bar 143  bar 163  bar 60157
Q3 304  bar 118  bar 186  bar 63177
Q4 274  bar 97  bar 177  bar 60171
 
2023 Q1 274  bar 65  bar 209  bar 813188
Q2 108  bar 96  bar 12  bar 2100
Q3 224  bar 113  bar 111  bar 40107
Q4 242  bar 117  bar 125  bar 40121
 


Sources: STI: PopStats and STI: Colossus