Ersys Logo Ersys Name
Salt Lake 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 331  bar 301  bar 30  bar 6024
Q2 517  bar 375  bar 142  bar 224116
Q3 703  bar 372  bar 331  bar 820303
Q4 484  bar 354  bar 130  bar 211117
 
1998 Q1 320  bar 279  bar 41  bar 20156
Q2 763  bar 471  bar 292  bar 1644232
Q3 399  bar 389  bar 10  bar 640
Q4 630  bar 474  bar 156  bar 223599
 
1999 Q1 426  bar 266  bar 160  bar 824128
Q2 483  bar 354  bar 129  bar 44121
Q3 325  bar 300  bar 25  bar 2716
Q4 377  bar 276  bar 101  bar 61184
 
2000 Q1 255  bar 236  bar 19  bar 0190
Q2 348  bar 327  bar 21  bar 1830
Q3 342  bar 288  bar 54  bar 4428
Q4 370  bar 266  bar 104  bar 21290
 
2001 Q1 261  bar 206  bar 55  bar 03916
Q2 401  bar 356  bar 45  bar 0936
Q3 428  bar 293  bar 135  bar 68121
Q4 601  bar 287  bar 314  bar 43307
 
2002 Q1 420  bar 239  bar 181  bar 218161
Q2 425  bar 363  bar 62  bar 83123
Q3 443  bar 340  bar 103  bar 142465
Q4 519  bar 370  bar 149  bar 144491
 
2003 Q1 406  bar 387  bar 19  bar 4312
Q2 778  bar 492  bar 286  bar 834244
Q3 815  bar 427  bar 388  bar 628354
Q4 739  bar 562  bar 177  bar 811158
 
2004 Q1 338  bar 273  bar 65  bar 41744
Q2 571  bar 495  bar 76  bar 22054
Q3 531  bar 422  bar 109  bar 103168
Q4 589  bar 512  bar 77  bar 4865
 
2005 Q1 844  bar 418  bar 426  bar 40422
Q2 557  bar 521  bar 36  bar 2826
Q3 483  bar 410  bar 73  bar 6364
Q4 704  bar 428  bar 276  bar 2059197
 
2006 Q1 455  bar 442  bar 13  bar 2011
Q2 467  bar 429  bar 38  bar 4268
Q3 528  bar 493  bar 35  bar 42011
Q4 627  bar 395  bar 232  bar 411217
 
2007 Q1 390  bar 378  bar 12  bar 237
Q2 391  bar 279  bar 112  bar 21595
Q3 528  bar 280  bar 248  bar 212234
Q4 239  bar 166  bar 73  bar 42049
 
2008 Q1 280  bar 80  bar 200  bar 03197
Q2 510  bar 173  bar 337  bar 411322
Q3 298  bar 111  bar 187  bar 213172
Q4 418  bar 98  bar 320  bar 23315
 
2009 Q1 589  bar 59  bar 530  bar 010520
Q2 416  bar 126  bar 290  bar 00290
Q3 260  bar 131  bar 129  bar 20127
Q4 157  bar 124  bar 33  bar 0033
 
2010 Q1 111  bar 102  bar 9  bar 045
Q2 525  bar 209  bar 316  bar 415297
Q3 142  bar 126  bar 16  bar 286
Q4 121  bar 109  bar 12  bar 0012
 
2011 Q1 137  bar 121  bar 16  bar 2410
Q2 135  bar 120  bar 15  bar 2310
Q3 408  bar 302  bar 106  bar 4795
Q4 159  bar 139  bar 20  bar 2018
 
2012 Q1 146  bar 106  bar 40  bar 2038
Q2 259  bar 236  bar 23  bar 6017
Q3 263  bar 220  bar 43  bar 2437
Q4 290  bar 245  bar 45  bar 41229
 
2013 Q1 200  bar 164  bar 36  bar 0036
Q2 301  bar 283  bar 18  bar 0612
Q3 432  bar 264  bar 168  bar 447117
Q4 495  bar 262  bar 233  bar 1018205
 
2014 Q1 581  bar 236  bar 345  bar 1626303
Q2 288  bar 204  bar 84  bar 2775
Q3 325  bar 218  bar 107  bar 2897
Q4 400  bar 246  bar 154  bar 08146
 
2015 Q1 204  bar 204  bar 0  bar 000
Q2 660  bar 357  bar 303  bar 224277
Q3 912  bar 356  bar 556  bar 424528
Q4 302  bar 265  bar 37  bar 21223
 
2016 Q1 279  bar 229  bar 50  bar 4838
Q2 648  bar 331  bar 317  bar 80309
Q3 377  bar 268  bar 109  bar 21196
Q4 1,364  bar 330  bar 1,034  bar 871,019
 
2017 Q1 343  bar 233  bar 110  bar 8399
Q2 668  bar 305  bar 363  bar 146343
Q3 1,089  bar 434  bar 655  bar 031624
Q4 524  bar 423  bar 101  bar 42869
 
2018 Q1 761  bar 368  bar 393  bar 1034349
Q2 514  bar 421  bar 93  bar 0489
Q3 612  bar 470  bar 142  bar 620116
Q4 757  bar 399  bar 358  bar 1226320
 
2019 Q1 517  bar 273  bar 244  bar 2218204
Q2 684  bar 336  bar 348  bar 437307
Q3 728  bar 403  bar 325  bar 5424247
Q4 1,030  bar 446  bar 584  bar 166562
 
2020 Q1 719  bar 319  bar 400  bar 2613361
Q2 716  bar 296  bar 420  bar 308382
Q3 762  bar 343  bar 419  bar 87404
Q4 851  bar 430  bar 421  bar 089332
 
2021 Q1 830  bar 468  bar 362  bar 620336
Q2 945  bar 572  bar 373  bar 28363
Q3 869  bar 251  bar 618  bar 146598
Q4 638  bar 228  bar 410  bar 614390
 
2022 Q1 1,456  bar 390  bar 1,066  bar 2101,054
Q2 744  bar 325  bar 419  bar 147398
Q3 607  bar 190  bar 417  bar 40413
Q4 616  bar 194  bar 422  bar 40418
 
2023 Q1 537  bar 173  bar 364  bar 63355
Q2 521  bar 171  bar 350  bar 823319
Q3 951  bar 311  bar 640  bar 643591
Q4 371  bar 270  bar 101  bar 41186
 


Sources: STI: PopStats and STI: Colossus