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Milwaukee 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 43  bar 37  bar 6  bar 600
Q2 138  bar 86  bar 52  bar 8341
Q3 234  bar 51  bar 183  bar 183162
Q4 198  bar 46  bar 152  bar 48140
 
1998 Q1 100  bar 31  bar 69  bar 2067
Q2 70  bar 44  bar 26  bar 2816
Q3 75  bar 71  bar 4  bar 040
Q4 251  bar 55  bar 196  bar 80188
 
1999 Q1 115  bar 59  bar 56  bar 10046
Q2 199  bar 89  bar 110  bar 12098
Q3 80  bar 76  bar 4  bar 400
Q4 139  bar 57  bar 82  bar 14068
 
2000 Q1 145  bar 34  bar 111  bar 03108
Q2 64  bar 58  bar 6  bar 600
Q3 145  bar 33  bar 112  bar 47101
Q4 228  bar 76  bar 152  bar 24146
 
2001 Q1 59  bar 53  bar 6  bar 240
Q2 258  bar 63  bar 195  bar 1620159
Q3 79  bar 57  bar 22  bar 2020
Q4 142  bar 63  bar 79  bar 12463
 
2002 Q1 111  bar 41  bar 70  bar 21157
Q2 110  bar 85  bar 25  bar 2167
Q3 141  bar 55  bar 86  bar 21668
Q4 378  bar 75  bar 303  bar 43296
 
2003 Q1 231  bar 79  bar 152  bar 20150
Q2 123  bar 64  bar 59  bar 4055
Q3 189  bar 79  bar 110  bar 40106
Q4 167  bar 117  bar 50  bar 14036
 
2004 Q1 221  bar 57  bar 164  bar 347123
Q2 440  bar 64  bar 376  bar 68362
Q3 125  bar 68  bar 57  bar 122817
Q4 117  bar 56  bar 61  bar 14443
 
2005 Q1 242  bar 74  bar 168  bar 212154
Q2 253  bar 86  bar 167  bar 412151
Q3 234  bar 64  bar 170  bar 60164
Q4 93  bar 50  bar 43  bar 8035
 
2006 Q1 145  bar 74  bar 71  bar 12356
Q2 110  bar 62  bar 48  bar 6438
Q3 67  bar 27  bar 40  bar 2038
Q4 95  bar 32  bar 63  bar 8055
 
2007 Q1 321  bar 30  bar 291  bar 00291
Q2 46  bar 38  bar 8  bar 440
Q3 28  bar 22  bar 6  bar 240
Q4 225  bar 33  bar 192  bar 20190
 
2008 Q1 36  bar 32  bar 4  bar 400
Q2 127  bar 33  bar 94  bar 4090
Q3 30  bar 28  bar 2  bar 200
Q4 37  bar 27  bar 10  bar 1000
 
2009 Q1 25  bar 13  bar 12  bar 408
Q2 24  bar 22  bar 2  bar 200
Q3 16  bar 14  bar 2  bar 200
Q4 8  bar 8  bar 0  bar 000
 
2010 Q1 7  bar 5  bar 2  bar 200
Q2 213  bar 17  bar 196  bar 00196
Q3 12  bar 12  bar 0  bar 000
Q4 76  bar 8  bar 68  bar 0068
 
2011 Q1 94  bar 14  bar 80  bar 0080
Q2 109  bar 19  bar 90  bar 0090
Q3 95  bar 18  bar 77  bar 0869
Q4 42  bar 10  bar 32  bar 0032
 
2012 Q1 12  bar 12  bar 0  bar 000
Q2 95  bar 11  bar 84  bar 0084
Q3 23  bar 17  bar 6  bar 006
Q4 29  bar 11  bar 18  bar 4014
 
2013 Q1 11  bar 11  bar 0  bar 000
Q2 21  bar 13  bar 8  bar 008
Q3 119  bar 16  bar 103  bar 0499
Q4 14  bar 14  bar 0  bar 000
 
2014 Q1 98  bar 8  bar 90  bar 0090
Q2 18  bar 18  bar 0  bar 000
Q3 71  bar 9  bar 62  bar 2060
Q4 49  bar 17  bar 32  bar 0032
 
2015 Q1 192  bar 4  bar 188  bar 00188
Q2 17  bar 11  bar 6  bar 006
Q3 9  bar 7  bar 2  bar 200
Q4 168  bar 20  bar 148  bar 00148
 
2016 Q1 225  bar 12  bar 213  bar 00213
Q2 51  bar 12  bar 39  bar 6033
Q3 12  bar 12  bar 0  bar 000
Q4 199  bar 15  bar 184  bar 40180
 
2017 Q1 15  bar 9  bar 6  bar 600
Q2 7  bar 7  bar 0  bar 000
Q3 403  bar 12  bar 391  bar 20389
Q4 157  bar 4  bar 153  bar 40149
 
2018 Q1 10  bar 6  bar 4  bar 400
Q2 22  bar 22  bar 0  bar 000
Q3 663  bar 5  bar 658  bar 20656
Q4 83  bar 13  bar 70  bar 2068
 
2019 Q1 11  bar 11  bar 0  bar 000
Q2 205  bar 15  bar 190  bar 00190
Q3 17  bar 15  bar 2  bar 200
Q4 16  bar 14  bar 2  bar 200
 
2020 Q1 45  bar 15  bar 30  bar 0030
Q2 17  bar 12  bar 5  bar 005
Q3 27  bar 8  bar 19  bar 2017
Q4 21  bar 9  bar 12  bar 480
 
2021 Q1 14  bar 14  bar 0  bar 000
Q2 14  bar 12  bar 2  bar 200
Q3 20  bar 12  bar 8  bar 800
Q4 33  bar 17  bar 16  bar 2014
 
2022 Q1 150  bar 6  bar 144  bar 20142
Q2 11  bar 11  bar 0  bar 000
Q3 219  bar 12  bar 207  bar 20205
Q4 25  bar 21  bar 4  bar 400
 
2023 Q1 51  bar 5  bar 46  bar 6040
Q2 27  bar 2  bar 25  bar 0025
Q3 68  bar 19  bar 49  bar 0049
Q4 18  bar 9  bar 9  bar 405
 


Sources: STI: PopStats and STI: Colossus