Ersys Logo Ersys Name
Spartanburg 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 115  bar 113  bar 2  bar 200
Q2 137  bar 137  bar 0  bar 000
Q3 110  bar 108  bar 2  bar 200
Q4 152  bar 140  bar 12  bar 1200
 
1998 Q1 205  bar 113  bar 92  bar 0092
Q2 158  bar 156  bar 2  bar 200
Q3 145  bar 141  bar 4  bar 400
Q4 105  bar 103  bar 2  bar 200
 
1999 Q1 164  bar 164  bar 0  bar 000
Q2 157  bar 157  bar 0  bar 000
Q3 157  bar 155  bar 2  bar 200
Q4 120  bar 120  bar 0  bar 000
 
2000 Q1 116  bar 116  bar 0  bar 000
Q2 159  bar 119  bar 40  bar 41620
Q3 99  bar 97  bar 2  bar 200
Q4 171  bar 171  bar 0  bar 000
 
2001 Q1 126  bar 126  bar 0  bar 000
Q2 139  bar 131  bar 8  bar 800
Q3 89  bar 89  bar 0  bar 000
Q4 137  bar 133  bar 4  bar 400
 
2002 Q1 168  bar 134  bar 34  bar 3400
Q2 170  bar 158  bar 12  bar 1200
Q3 121  bar 119  bar 2  bar 200
Q4 140  bar 130  bar 10  bar 1000
 
2003 Q1 121  bar 121  bar 0  bar 000
Q2 262  bar 164  bar 98  bar 2096
Q3 173  bar 171  bar 2  bar 200
Q4 154  bar 154  bar 0  bar 000
 
2004 Q1 115  bar 115  bar 0  bar 000
Q2 170  bar 170  bar 0  bar 000
Q3 194  bar 194  bar 0  bar 000
Q4 140  bar 140  bar 0  bar 000
 
2005 Q1 149  bar 149  bar 0  bar 000
Q2 160  bar 160  bar 0  bar 000
Q3 170  bar 168  bar 2  bar 200
Q4 146  bar 146  bar 0  bar 000
 
2006 Q1 199  bar 199  bar 0  bar 000
Q2 195  bar 195  bar 0  bar 000
Q3 151  bar 151  bar 0  bar 000
Q4 143  bar 143  bar 0  bar 000
 
2007 Q1 153  bar 153  bar 0  bar 000
Q2 138  bar 138  bar 0  bar 000
Q3 132  bar 132  bar 0  bar 000
Q4 95  bar 95  bar 0  bar 000
 
2008 Q1 95  bar 95  bar 0  bar 000
Q2 98  bar 98  bar 0  bar 000
Q3 106  bar 106  bar 0  bar 000
Q4 55  bar 55  bar 0  bar 000
 
2009 Q1 24  bar 24  bar 0  bar 000
Q2 44  bar 44  bar 0  bar 000
Q3 59  bar 59  bar 0  bar 000
Q4 37  bar 37  bar 0  bar 000
 
2010 Q1 41  bar 41  bar 0  bar 000
Q2 42  bar 42  bar 0  bar 000
Q3 39  bar 39  bar 0  bar 000
Q4 40  bar 40  bar 0  bar 000
 
2011 Q1 30  bar 30  bar 0  bar 000
Q2 39  bar 39  bar 0  bar 000
Q3 42  bar 42  bar 0  bar 000
Q4 47  bar 47  bar 0  bar 000
 
2012 Q1 38  bar 38  bar 0  bar 000
Q2 54  bar 54  bar 0  bar 000
Q3 70  bar 70  bar 0  bar 000
Q4 70  bar 70  bar 0  bar 000
 
2013 Q1 48  bar 48  bar 0  bar 000
Q2 112  bar 112  bar 0  bar 000
Q3 73  bar 73  bar 0  bar 000
Q4 92  bar 92  bar 0  bar 000
 
2014 Q1 72  bar 72  bar 0  bar 000
Q2 83  bar 83  bar 0  bar 000
Q3 116  bar 116  bar 0  bar 000
Q4 100  bar 100  bar 0  bar 000
 
2015 Q1 84  bar 84  bar 0  bar 000
Q2 134  bar 134  bar 0  bar 000
Q3 122  bar 122  bar 0  bar 000
Q4 95  bar 95  bar 0  bar 000
 
2016 Q1 127  bar 127  bar 0  bar 000
Q2 196  bar 196  bar 0  bar 000
Q3 179  bar 179  bar 0  bar 000
Q4 150  bar 150  bar 0  bar 000
 
2017 Q1 168  bar 168  bar 0  bar 000
Q2 179  bar 179  bar 0  bar 000
Q3 200  bar 200  bar 0  bar 000
Q4 189  bar 189  bar 0  bar 000
 
2018 Q1 220  bar 220  bar 0  bar 000
Q2 193  bar 193  bar 0  bar 000
Q3 199  bar 199  bar 0  bar 000
Q4 212  bar 212  bar 0  bar 000
 
2019 Q1 157  bar 157  bar 0  bar 000
Q2 244  bar 244  bar 0  bar 000
Q3 287  bar 287  bar 0  bar 000
Q4 201  bar 201  bar 0  bar 000
 
2020 Q1 234  bar 234  bar 0  bar 000
Q2 178  bar 178  bar 0  bar 000
Q3 275  bar 275  bar 0  bar 000
Q4 287  bar 287  bar 0  bar 000
 
2021 Q1 275  bar 275  bar 0  bar 000
Q2 306  bar 306  bar 0  bar 000
Q3 274  bar 274  bar 0  bar 000
Q4 276  bar 276  bar 0  bar 000
 
2022 Q1 260  bar 260  bar 0  bar 000
Q2 322  bar 300  bar 22  bar 0022
Q3 249  bar 224  bar 25  bar 0025
Q4 223  bar 199  bar 24  bar 0024
 
2023 Q1 269  bar 269  bar 0  bar 000
Q2 213  bar 213  bar 0  bar 000
Q3 223  bar 223  bar 0  bar 000
Q4 246  bar 246  bar 0  bar 000
 


Sources: STI: PopStats and STI: Colossus