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Lorain 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 65  bar 61  bar 4  bar 400
Q2 112  bar 112  bar 0  bar 000
Q3 107  bar 99  bar 8  bar 800
Q4 95  bar 83  bar 12  bar 660
 
1998 Q1 59  bar 52  bar 7  bar 430
Q2 131  bar 127  bar 4  bar 400
Q3 102  bar 102  bar 0  bar 000
Q4 147  bar 115  bar 32  bar 6260
 
1999 Q1 72  bar 70  bar 2  bar 200
Q2 157  bar 135  bar 22  bar 2200
Q3 123  bar 119  bar 4  bar 400
Q4 107  bar 104  bar 3  bar 030
 
2000 Q1 92  bar 71  bar 21  bar 2415
Q2 163  bar 151  bar 12  bar 0120
Q3 132  bar 126  bar 6  bar 240
Q4 397  bar 110  bar 287  bar 1235240
 
2001 Q1 91  bar 91  bar 0  bar 000
Q2 154  bar 141  bar 13  bar 2110
Q3 133  bar 127  bar 6  bar 240
Q4 137  bar 132  bar 5  bar 230
 
2002 Q1 120  bar 111  bar 9  bar 270
Q2 181  bar 163  bar 18  bar 2160
Q3 274  bar 185  bar 89  bar 61172
Q4 235  bar 213  bar 22  bar 10120
 
2003 Q1 117  bar 117  bar 0  bar 000
Q2 199  bar 193  bar 6  bar 600
Q3 331  bar 327  bar 4  bar 040
Q4 216  bar 198  bar 18  bar 648
 
2004 Q1 125  bar 121  bar 4  bar 040
Q2 216  bar 210  bar 6  bar 600
Q3 164  bar 164  bar 0  bar 000
Q4 158  bar 150  bar 8  bar 080
 
2005 Q1 137  bar 117  bar 20  bar 6014
Q2 206  bar 190  bar 16  bar 6100
Q3 199  bar 189  bar 10  bar 406
Q4 152  bar 142  bar 10  bar 640
 
2006 Q1 113  bar 102  bar 11  bar 0110
Q2 162  bar 154  bar 8  bar 440
Q3 110  bar 105  bar 5  bar 230
Q4 130  bar 108  bar 22  bar 4126
 
2007 Q1 80  bar 77  bar 3  bar 030
Q2 95  bar 87  bar 8  bar 440
Q3 104  bar 90  bar 14  bar 4010
Q4 99  bar 83  bar 16  bar 2014
 
2008 Q1 51  bar 49  bar 2  bar 200
Q2 63  bar 61  bar 2  bar 200
Q3 75  bar 70  bar 5  bar 230
Q4 100  bar 58  bar 42  bar 4038
 
2009 Q1 30  bar 30  bar 0  bar 000
Q2 51  bar 47  bar 4  bar 040
Q3 59  bar 59  bar 0  bar 000
Q4 56  bar 46  bar 10  bar 280
 
2010 Q1 37  bar 37  bar 0  bar 000
Q2 59  bar 57  bar 2  bar 200
Q3 64  bar 64  bar 0  bar 000
Q4 47  bar 43  bar 4  bar 040
 
2011 Q1 24  bar 24  bar 0  bar 000
Q2 42  bar 42  bar 0  bar 000
Q3 71  bar 42  bar 29  bar 0029
Q4 35  bar 35  bar 0  bar 000
 
2012 Q1 48  bar 38  bar 10  bar 0010
Q2 85  bar 44  bar 41  bar 0437
Q3 65  bar 65  bar 0  bar 000
Q4 79  bar 71  bar 8  bar 008
 
2013 Q1 41  bar 41  bar 0  bar 000
Q2 52  bar 52  bar 0  bar 000
Q3 63  bar 63  bar 0  bar 000
Q4 68  bar 53  bar 15  bar 0015
 
2014 Q1 45  bar 36  bar 9  bar 045
Q2 87  bar 85  bar 2  bar 200
Q3 54  bar 50  bar 4  bar 040
Q4 84  bar 65  bar 19  bar 0019
 
2015 Q1 79  bar 28  bar 51  bar 02031
Q2 59  bar 57  bar 2  bar 200
Q3 77  bar 77  bar 0  bar 000
Q4 103  bar 66  bar 37  bar 0433
 
2016 Q1 58  bar 54  bar 4  bar 040
Q2 77  bar 71  bar 6  bar 006
Q3 67  bar 67  bar 0  bar 000
Q4 61  bar 52  bar 9  bar 045
 
2017 Q1 63  bar 55  bar 8  bar 080
Q2 68  bar 62  bar 6  bar 240
Q3 63  bar 55  bar 8  bar 080
Q4 89  bar 86  bar 3  bar 030
 
2018 Q1 66  bar 58  bar 8  bar 080
Q2 88  bar 78  bar 10  bar 280
Q3 150  bar 134  bar 16  bar 4120
Q4 119  bar 95  bar 24  bar 0420
 
2019 Q1 78  bar 72  bar 6  bar 240
Q2 98  bar 74  bar 24  bar 0420
Q3 88  bar 78  bar 10  bar 280
Q4 116  bar 106  bar 10  bar 208
 
2020 Q1 69  bar 55  bar 14  bar 0410
Q2 122  bar 107  bar 15  bar 0015
Q3 121  bar 109  bar 12  bar 0120
Q4 112  bar 104  bar 8  bar 080
 
2021 Q1 66  bar 60  bar 6  bar 240
Q2 124  bar 82  bar 42  bar 01230
Q3 98  bar 98  bar 0  bar 000
Q4 117  bar 109  bar 8  bar 800
 
2022 Q1 70  bar 70  bar 0  bar 000
Q2 119  bar 119  bar 0  bar 000
Q3 98  bar 98  bar 0  bar 000
Q4 47  bar 47  bar 0  bar 000
 
2023 Q1 60  bar 36  bar 24  bar 0024
Q2 75  bar 72  bar 3  bar 030
Q3 84  bar 84  bar 0  bar 000
Q4 83  bar 73  bar 10  bar 0010
 


Sources: STI: PopStats and STI: Colossus