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Horry 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 332  bar 189  bar 143  bar 016127
Q2 293  bar 156  bar 137  bar 018119
Q3 439  bar 190  bar 249  bar 27240
Q4 628  bar 210  bar 418  bar 28408
 
1998 Q1 227  bar 160  bar 67  bar 21253
Q2 345  bar 163  bar 182  bar 640136
Q3 820  bar 212  bar 608  bar 629573
Q4 286  bar 149  bar 137  bar 216119
 
1999 Q1 394  bar 131  bar 263  bar 028235
Q2 384  bar 193  bar 191  bar 216173
Q3 390  bar 177  bar 213  bar 212199
Q4 453  bar 175  bar 278  bar 628244
 
2000 Q1 460  bar 143  bar 317  bar 016301
Q2 356  bar 143  bar 213  bar 230181
Q3 441  bar 141  bar 300  bar 04296
Q4 196  bar 154  bar 42  bar 2040
 
2001 Q1 208  bar 151  bar 57  bar 6447
Q2 216  bar 177  bar 39  bar 4827
Q3 605  bar 169  bar 436  bar 00436
Q4 277  bar 152  bar 125  bar 68111
 
2002 Q1 158  bar 152  bar 6  bar 240
Q2 403  bar 214  bar 189  bar 40185
Q3 227  bar 180  bar 47  bar 2045
Q4 277  bar 222  bar 55  bar 0451
 
2003 Q1 284  bar 216  bar 68  bar 0068
Q2 362  bar 286  bar 76  bar 0472
Q3 737  bar 400  bar 337  bar 012325
Q4 502  bar 321  bar 181  bar 87166
 
2004 Q1 383  bar 256  bar 127  bar 40123
Q2 519  bar 358  bar 161  bar 08153
Q3 507  bar 412  bar 95  bar 2489
Q4 562  bar 360  bar 202  bar 415183
 
2005 Q1 1,089  bar 403  bar 686  bar 020666
Q2 741  bar 550  bar 191  bar 200171
Q3 1,149  bar 505  bar 644  bar 832604
Q4 804  bar 562  bar 242  bar 412226
 
2006 Q1 1,531  bar 530  bar 1,001  bar 626969
Q2 745  bar 602  bar 143  bar 00143
Q3 759  bar 575  bar 184  bar 00184
Q4 449  bar 391  bar 58  bar 2056
 
2007 Q1 835  bar 428  bar 407  bar 00407
Q2 421  bar 405  bar 16  bar 0016
Q3 381  bar 299  bar 82  bar 0082
Q4 314  bar 249  bar 65  bar 2063
 
2008 Q1 263  bar 168  bar 95  bar 0095
Q2 263  bar 209  bar 54  bar 0054
Q3 698  bar 160  bar 538  bar 00538
Q4 122  bar 101  bar 21  bar 0021
 
2009 Q1 108  bar 84  bar 24  bar 0024
Q2 147  bar 134  bar 13  bar 0013
Q3 137  bar 128  bar 9  bar 009
Q4 151  bar 128  bar 23  bar 0023
 
2010 Q1 96  bar 86  bar 10  bar 0010
Q2 202  bar 192  bar 10  bar 0010
Q3 97  bar 97  bar 0  bar 000
Q4 108  bar 108  bar 0  bar 000
 
2011 Q1 81  bar 81  bar 0  bar 000
Q2 129  bar 114  bar 15  bar 0015
Q3 119  bar 119  bar 0  bar 000
Q4 384  bar 130  bar 254  bar 00254
 
2012 Q1 198  bar 108  bar 90  bar 2088
Q2 182  bar 176  bar 6  bar 006
Q3 178  bar 173  bar 5  bar 005
Q4 196  bar 196  bar 0  bar 000
 
2013 Q1 204  bar 200  bar 4  bar 400
Q2 267  bar 247  bar 20  bar 4412
Q3 216  bar 202  bar 14  bar 086
Q4 349  bar 222  bar 127  bar 100117
 
2014 Q1 214  bar 186  bar 28  bar 0028
Q2 249  bar 242  bar 7  bar 205
Q3 391  bar 317  bar 74  bar 2072
Q4 320  bar 312  bar 8  bar 800
 
2015 Q1 287  bar 280  bar 7  bar 205
Q2 298  bar 291  bar 7  bar 205
Q3 330  bar 302  bar 28  bar 1846
Q4 309  bar 295  bar 14  bar 4010
 
2016 Q1 281  bar 247  bar 34  bar 2248
Q2 441  bar 377  bar 64  bar 16048
Q3 262  bar 254  bar 8  bar 440
Q4 259  bar 259  bar 0  bar 000
 
2017 Q1 363  bar 312  bar 51  bar 28023
Q2 333  bar 320  bar 13  bar 0013
Q3 315  bar 307  bar 8  bar 800
Q4 564  bar 554  bar 10  bar 208
 
2018 Q1 380  bar 364  bar 16  bar 0016
Q2 379  bar 358  bar 21  bar 0021
Q3 381  bar 376  bar 5  bar 005
Q4 337  bar 337  bar 0  bar 000
 
2019 Q1 312  bar 299  bar 13  bar 805
Q2 399  bar 379  bar 20  bar 2000
Q3 431  bar 426  bar 5  bar 005
Q4 464  bar 449  bar 15  bar 1005
 
2020 Q1 396  bar 336  bar 60  bar 32028
Q2 347  bar 347  bar 0  bar 000
Q3 491  bar 484  bar 7  bar 205
Q4 600  bar 600  bar 0  bar 000
 
2021 Q1 628  bar 623  bar 5  bar 005
Q2 641  bar 620  bar 21  bar 0021
Q3 570  bar 563  bar 7  bar 205
Q4 768  bar 619  bar 149  bar 14405
 
2022 Q1 388  bar 365  bar 23  bar 1805
Q2 651  bar 645  bar 6  bar 006
Q3 619  bar 612  bar 7  bar 007
Q4 616  bar 604  bar 12  bar 2010
 
2023 Q1 363  bar 350  bar 13  bar 076
Q2 466  bar 459  bar 7  bar 205
Q3 580  bar 575  bar 5  bar 005
Q4 653  bar 595  bar 58  bar 0058
 


Sources: STI: PopStats and STI: Colossus