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Waukesha 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 157  bar 89  bar 68  bar 12452
Q2 269  bar 191  bar 78  bar 14064
Q3 350  bar 155  bar 195  bar 60189
Q4 272  bar 139  bar 133  bar 1211110
 
1998 Q1 159  bar 110  bar 49  bar 2047
Q2 334  bar 201  bar 133  bar 120121
Q3 268  bar 182  bar 86  bar 32846
Q4 231  bar 165  bar 66  bar 16446
 
1999 Q1 289  bar 196  bar 93  bar 10875
Q2 445  bar 248  bar 197  bar 260171
Q3 235  bar 176  bar 59  bar 4847
Q4 281  bar 158  bar 123  bar 128103
 
2000 Q1 190  bar 127  bar 63  bar 16047
Q2 254  bar 176  bar 78  bar 201246
Q3 174  bar 158  bar 16  bar 448
Q4 198  bar 190  bar 8  bar 800
 
2001 Q1 329  bar 125  bar 204  bar 128184
Q2 240  bar 187  bar 53  bar 14318
Q3 240  bar 159  bar 81  bar 61263
Q4 186  bar 150  bar 36  bar 61416
 
2002 Q1 182  bar 144  bar 38  bar 6032
Q2 244  bar 164  bar 80  bar 16064
Q3 166  bar 132  bar 34  bar 2032
Q4 160  bar 136  bar 24  bar 1248
 
2003 Q1 272  bar 123  bar 149  bar 60143
Q2 228  bar 197  bar 31  bar 10021
Q3 179  bar 141  bar 38  bar 6032
Q4 206  bar 197  bar 9  bar 045
 
2004 Q1 108  bar 108  bar 0  bar 000
Q2 174  bar 149  bar 25  bar 6019
Q3 185  bar 169  bar 16  bar 0313
Q4 216  bar 152  bar 64  bar 0064
 
2005 Q1 133  bar 108  bar 25  bar 0421
Q2 150  bar 126  bar 24  bar 8016
Q3 323  bar 128  bar 195  bar 40191
Q4 196  bar 114  bar 82  bar 10072
 
2006 Q1 121  bar 100  bar 21  bar 4413
Q2 134  bar 117  bar 17  bar 2150
Q3 93  bar 85  bar 8  bar 008
Q4 297  bar 123  bar 174  bar 20172
 
2007 Q1 71  bar 69  bar 2  bar 200
Q2 83  bar 83  bar 0  bar 000
Q3 97  bar 89  bar 8  bar 080
Q4 151  bar 93  bar 58  bar 0058
 
2008 Q1 45  bar 37  bar 8  bar 035
Q2 69  bar 66  bar 3  bar 030
Q3 118  bar 56  bar 62  bar 0062
Q4 50  bar 46  bar 4  bar 040
 
2009 Q1 12  bar 12  bar 0  bar 000
Q2 28  bar 28  bar 0  bar 000
Q3 26  bar 26  bar 0  bar 000
Q4 39  bar 39  bar 0  bar 000
 
2010 Q1 30  bar 28  bar 2  bar 200
Q2 38  bar 38  bar 0  bar 000
Q3 41  bar 41  bar 0  bar 000
Q4 45  bar 45  bar 0  bar 000
 
2011 Q1 30  bar 30  bar 0  bar 000
Q2 40  bar 36  bar 4  bar 400
Q3 41  bar 35  bar 6  bar 600
Q4 42  bar 38  bar 4  bar 400
 
2012 Q1 63  bar 29  bar 34  bar 0034
Q2 37  bar 37  bar 0  bar 000
Q3 53  bar 53  bar 0  bar 000
Q4 70  bar 70  bar 0  bar 000
 
2013 Q1 36  bar 34  bar 2  bar 200
Q2 159  bar 57  bar 102  bar 4098
Q3 61  bar 59  bar 2  bar 200
Q4 70  bar 68  bar 2  bar 200
 
2014 Q1 55  bar 55  bar 0  bar 000
Q2 63  bar 63  bar 0  bar 000
Q3 88  bar 70  bar 18  bar 288
Q4 133  bar 71  bar 62  bar 0062
 
2015 Q1 37  bar 35  bar 2  bar 200
Q2 80  bar 80  bar 0  bar 000
Q3 112  bar 70  bar 42  bar 0042
Q4 74  bar 68  bar 6  bar 600
 
2016 Q1 63  bar 61  bar 2  bar 200
Q2 178  bar 86  bar 92  bar 0092
Q3 76  bar 76  bar 0  bar 000
Q4 65  bar 65  bar 0  bar 000
 
2017 Q1 66  bar 66  bar 0  bar 000
Q2 71  bar 61  bar 10  bar 1000
Q3 91  bar 91  bar 0  bar 000
Q4 73  bar 69  bar 4  bar 400
 
2018 Q1 71  bar 71  bar 0  bar 000
Q2 111  bar 84  bar 27  bar 0027
Q3 88  bar 82  bar 6  bar 600
Q4 91  bar 91  bar 0  bar 000
 
2019 Q1 54  bar 45  bar 9  bar 630
Q2 96  bar 86  bar 10  bar 1000
Q3 75  bar 67  bar 8  bar 800
Q4 89  bar 77  bar 12  bar 1200
 
2020 Q1 73  bar 57  bar 16  bar 1600
Q2 87  bar 61  bar 26  bar 2600
Q3 62  bar 54  bar 8  bar 800
Q4 121  bar 83  bar 38  bar 8030
 
2021 Q1 74  bar 70  bar 4  bar 400
Q2 147  bar 105  bar 42  bar 14028
Q3 124  bar 90  bar 34  bar 6280
Q4 154  bar 71  bar 83  bar 2081
 
2022 Q1 78  bar 70  bar 8  bar 800
Q2 152  bar 75  bar 77  bar 24053
Q3 215  bar 78  bar 137  bar 200117
Q4 121  bar 70  bar 51  bar 22029
 
2023 Q1 65  bar 55  bar 10  bar 1000
Q2 81  bar 65  bar 16  bar 1600
Q3 90  bar 78  bar 12  bar 1200
Q4 168  bar 78  bar 90  bar 8082
 


Sources: STI: PopStats and STI: Colossus