Description:
Data represents the future development rights obtained by builders. A building permit has two parts: an orange card that is displayed on the property during construction and a data file kept on record at the local Town Hall.

Released:
Two to Three weeks after month being covered

Key Point:
95% of all localities in the United States require the use of permits before any ground breaking activities. Building permits are a leading indicator as to where and how much construction growth will occur. The health of the housing market is perhaps one of the best indicators as to the health of the overall economy. With the exception of 2001, there has never been a recession in the U.S. when the housing market was strong.

The main reason why the housing market is a good indicator of economic conditions is that it is closely tied to interest rates. As interest rates climb in an effort to cool a “hot” economy, capital becomes more expensive and construction slows. Furthermore, mortgages also rise and this dampens the demand for homes. In contrast, when the economic outlook looks weak, interest rates decline which spurs construction and demand for homes as borrowing costs decline. Housing also has a major impact on the economy due to its sheer size. When construction is robust, the demand for raw materials increases as well as the need for skilled construction workers. In summary, the diverse nature of the housing market effects many industries and cannot be neglected.

Release site: Click here