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Weber 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 91  bar 89  bar 2  bar 200
Q2 229  bar 167  bar 62  bar 2456
Q3 139  bar 113  bar 26  bar 6200
Q4 105  bar 103  bar 2  bar 200
 
1998 Q1 106  bar 86  bar 20  bar 4160
Q2 157  bar 127  bar 30  bar 6024
Q3 134  bar 122  bar 12  bar 480
Q4 141  bar 135  bar 6  bar 600
 
1999 Q1 120  bar 106  bar 14  bar 1400
Q2 179  bar 152  bar 27  bar 6417
Q3 189  bar 144  bar 45  bar 2043
Q4 175  bar 143  bar 32  bar 6422
 
2000 Q1 122  bar 95  bar 27  bar 4419
Q2 165  bar 144  bar 21  bar 4314
Q3 107  bar 86  bar 21  bar 4017
Q4 141  bar 122  bar 19  bar 4411
 
2001 Q1 125  bar 92  bar 33  bar 2724
Q2 171  bar 145  bar 26  bar 6317
Q3 187  bar 115  bar 72  bar 6363
Q4 126  bar 109  bar 17  bar 2312
 
2002 Q1 51  bar 49  bar 2  bar 200
Q2 121  bar 113  bar 8  bar 440
Q3 124  bar 120  bar 4  bar 040
Q4 144  bar 133  bar 11  bar 0110
 
2003 Q1 116  bar 108  bar 8  bar 080
Q2 145  bar 133  bar 12  bar 480
Q3 119  bar 113  bar 6  bar 060
Q4 156  bar 140  bar 16  bar 1240
 
2004 Q1 103  bar 83  bar 20  bar 0200
Q2 158  bar 142  bar 16  bar 1600
Q3 132  bar 98  bar 34  bar 4246
Q4 107  bar 107  bar 0  bar 000
 
2005 Q1 72  bar 68  bar 4  bar 040
Q2 100  bar 90  bar 10  bar 280
Q3 129  bar 113  bar 16  bar 1060
Q4 110  bar 110  bar 0  bar 000
 
2006 Q1 91  bar 91  bar 0  bar 000
Q2 89  bar 85  bar 4  bar 040
Q3 133  bar 116  bar 17  bar 6110
Q4 121  bar 105  bar 16  bar 0412
 
2007 Q1 71  bar 71  bar 0  bar 000
Q2 81  bar 77  bar 4  bar 400
Q3 124  bar 94  bar 30  bar 2280
Q4 102  bar 86  bar 16  bar 0412
 
2008 Q1 24  bar 20  bar 4  bar 040
Q2 104  bar 44  bar 60  bar 01248
Q3 111  bar 39  bar 72  bar 0072
Q4 34  bar 34  bar 0  bar 000
 
2009 Q1 6  bar 6  bar 0  bar 000
Q2 40  bar 36  bar 4  bar 040
Q3 42  bar 42  bar 0  bar 000
Q4 40  bar 40  bar 0  bar 000
 
2010 Q1 46  bar 19  bar 27  bar 0423
Q2 33  bar 33  bar 0  bar 000
Q3 21  bar 16  bar 5  bar 005
Q4 23  bar 17  bar 6  bar 006
 
2011 Q1 15  bar 15  bar 0  bar 000
Q2 30  bar 24  bar 6  bar 006
Q3 19  bar 19  bar 0  bar 000
Q4 25  bar 25  bar 0  bar 000
 
2012 Q1 20  bar 12  bar 8  bar 080
Q2 27  bar 27  bar 0  bar 000
Q3 18  bar 14  bar 4  bar 040
Q4 24  bar 24  bar 0  bar 000
 
2013 Q1 66  bar 13  bar 53  bar 0746
Q2 45  bar 35  bar 10  bar 280
Q3 51  bar 51  bar 0  bar 000
Q4 32  bar 28  bar 4  bar 040
 
2014 Q1 54  bar 30  bar 24  bar 0024
Q2 44  bar 35  bar 9  bar 045
Q3 116  bar 68  bar 48  bar 0741
Q4 225  bar 38  bar 187  bar 035152
 
2015 Q1 38  bar 33  bar 5  bar 005
Q2 68  bar 51  bar 17  bar 0710
Q3 71  bar 61  bar 10  bar 235
Q4 222  bar 58  bar 164  bar 018146
 
2016 Q1 168  bar 50  bar 118  bar 012106
Q2 313  bar 77  bar 236  bar 07229
Q3 113  bar 64  bar 49  bar 2641
Q4 109  bar 66  bar 43  bar 01429
 
2017 Q1 220  bar 76  bar 144  bar 410436
Q2 173  bar 96  bar 77  bar 0077
Q3 143  bar 113  bar 30  bar 02010
Q4 110  bar 64  bar 46  bar 01234
 
2018 Q1 70  bar 58  bar 12  bar 0120
Q2 109  bar 91  bar 18  bar 2160
Q3 94  bar 94  bar 0  bar 000
Q4 97  bar 97  bar 0  bar 000
 
2019 Q1 80  bar 51  bar 29  bar 0623
Q2 114  bar 83  bar 31  bar 0256
Q3 160  bar 77  bar 83  bar 21170
Q4 162  bar 83  bar 79  bar 02455
 
2020 Q1 200  bar 200  bar 0  bar 000
Q2 172  bar 158  bar 14  bar 0410
Q3 213  bar 160  bar 53  bar 01637
Q4 200  bar 151  bar 49  bar 6439
 
2021 Q1 136  bar 126  bar 10  bar 046
Q2 208  bar 174  bar 34  bar 2725
Q3 144  bar 103  bar 41  bar 2435
Q4 312  bar 149  bar 163  bar 06157
 
2022 Q1 271  bar 161  bar 110  bar 04106
Q2 179  bar 165  bar 14  bar 0410
Q3 384  bar 107  bar 277  bar 611260
Q4 105  bar 96  bar 9  bar 045
 
2023 Q1 76  bar 36  bar 40  bar 01129
Q2 123  bar 74  bar 49  bar 0445
Q3 108  bar 70  bar 38  bar 0335
Q4 103  bar 63  bar 40  bar 0436
 


Sources: STI: PopStats and STI: Colossus