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Cache 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 33  bar 9  bar 24  bar 0240
Q2 80  bar 80  bar 0  bar 000
Q3 29  bar 26  bar 3  bar 030
Q4 35  bar 35  bar 0  bar 000
 
1998 Q1 53  bar 53  bar 0  bar 000
Q2 31  bar 29  bar 2  bar 200
Q3 31  bar 31  bar 0  bar 000
Q4 34  bar 34  bar 0  bar 000
 
1999 Q1 18  bar 14  bar 4  bar 400
Q2 64  bar 64  bar 0  bar 000
Q3 53  bar 53  bar 0  bar 000
Q4 52  bar 50  bar 2  bar 200
 
2000 Q1 24  bar 24  bar 0  bar 000
Q2 54  bar 54  bar 0  bar 000
Q3 18  bar 18  bar 0  bar 000
Q4 38  bar 38  bar 0  bar 000
 
2001 Q1 10  bar 8  bar 2  bar 200
Q2 29  bar 29  bar 0  bar 000
Q3 22  bar 22  bar 0  bar 000
Q4 35  bar 35  bar 0  bar 000
 
2002 Q1 8  bar 8  bar 0  bar 000
Q2 39  bar 39  bar 0  bar 000
Q3 32  bar 28  bar 4  bar 400
Q4 60  bar 60  bar 0  bar 000
 
2003 Q1 16  bar 16  bar 0  bar 000
Q2 52  bar 42  bar 10  bar 640
Q3 68  bar 58  bar 10  bar 1000
Q4 63  bar 57  bar 6  bar 600
 
2004 Q1 53  bar 49  bar 4  bar 040
Q2 105  bar 86  bar 19  bar 4105
Q3 74  bar 62  bar 12  bar 075
Q4 159  bar 43  bar 116  bar 03113
 
2005 Q1 23  bar 20  bar 3  bar 030
Q2 97  bar 92  bar 5  bar 005
Q3 73  bar 69  bar 4  bar 040
Q4 52  bar 43  bar 9  bar 045
 
2006 Q1 30  bar 22  bar 8  bar 035
Q2 53  bar 39  bar 14  bar 095
Q3 78  bar 45  bar 33  bar 0429
Q4 82  bar 74  bar 8  bar 035
 
2007 Q1 34  bar 26  bar 8  bar 035
Q2 100  bar 92  bar 8  bar 035
Q3 76  bar 67  bar 9  bar 045
Q4 45  bar 40  bar 5  bar 005
 
2008 Q1 15  bar 7  bar 8  bar 035
Q2 28  bar 19  bar 9  bar 045
Q3 49  bar 44  bar 5  bar 005
Q4 64  bar 19  bar 45  bar 0045
 
2009 Q1 13  bar 6  bar 7  bar 070
Q2 22  bar 19  bar 3  bar 030
Q3 23  bar 23  bar 0  bar 000
Q4 21  bar 16  bar 5  bar 005
 
2010 Q1 12  bar 9  bar 3  bar 030
Q2 34  bar 34  bar 0  bar 000
Q3 23  bar 18  bar 5  bar 005
Q4 22  bar 14  bar 8  bar 035
 
2011 Q1 7  bar 7  bar 0  bar 000
Q2 29  bar 17  bar 12  bar 0012
Q3 23  bar 15  bar 8  bar 035
Q4 32  bar 27  bar 5  bar 005
 
2012 Q1 8  bar 3  bar 5  bar 005
Q2 35  bar 27  bar 8  bar 035
Q3 41  bar 26  bar 15  bar 087
Q4 25  bar 12  bar 13  bar 0310
 
2013 Q1 18  bar 8  bar 10  bar 037
Q2 50  bar 29  bar 21  bar 0615
Q3 59  bar 34  bar 25  bar 01213
Q4 41  bar 25  bar 16  bar 0412
 
2014 Q1 19  bar 7  bar 12  bar 075
Q2 150  bar 21  bar 129  bar 04125
Q3 32  bar 16  bar 16  bar 0412
Q4 66  bar 43  bar 23  bar 0617
 
2015 Q1 19  bar 19  bar 0  bar 000
Q2 11  bar 11  bar 0  bar 000
Q3 53  bar 25  bar 28  bar 0028
Q4 20  bar 20  bar 0  bar 000
 
2016 Q1 5  bar 5  bar 0  bar 000
Q2 36  bar 32  bar 4  bar 040
Q3 7  bar 7  bar 0  bar 000
Q4 8  bar 8  bar 0  bar 000
 
2017 Q1 6  bar 6  bar 0  bar 000
Q2 112  bar 42  bar 70  bar 0070
Q3 12  bar 12  bar 0  bar 000
Q4 217  bar 21  bar 196  bar 00196
 
2018 Q1 26  bar 6  bar 20  bar 0200
Q2 12  bar 12  bar 0  bar 000
Q3 27  bar 27  bar 0  bar 000
Q4 25  bar 25  bar 0  bar 000
 
2019 Q1 5  bar 5  bar 0  bar 000
Q2 14  bar 14  bar 0  bar 000
Q3 102  bar 17  bar 85  bar 21172
Q4 37  bar 13  bar 24  bar 0024
 
2020 Q1 35  bar 9  bar 26  bar 2024
Q2 209  bar 61  bar 148  bar 04144
Q3 26  bar 8  bar 18  bar 0180
Q4 266  bar 25  bar 241  bar 20239
 
2021 Q1 12  bar 12  bar 0  bar 000
Q2 22  bar 22  bar 0  bar 000
Q3 38  bar 28  bar 10  bar 0010
Q4 118  bar 71  bar 47  bar 01235
 
2022 Q1 62  bar 52  bar 10  bar 0010
Q2 103  bar 89  bar 14  bar 0014
Q3 92  bar 71  bar 21  bar 0021
Q4 112  bar 45  bar 67  bar 0463
 
2023 Q1 15  bar 15  bar 0  bar 000
Q2 50  bar 44  bar 6  bar 006
Q3 80  bar 80  bar 0  bar 000
Q4 62  bar 58  bar 4  bar 040
 


Sources: STI: PopStats and STI: Colossus