New Authorized Residential Building Permits
Contents
A new residential building permit is an authorization from a local government to begin construction on a new residential housing unit. These permits are a key economic indicator because they signify the start of a housing project. The number of permits issued is used to forecast future construction activity and housing supply.
Data Collection and Reporting
The U.S. Census Bureau, in partnership with the Department of Housing and Urban Development (HUD), collects and publishes data on residential building permits as part of its Building Permits Survey (BPS). This survey provides information on new, privately-owned housing units, including single-family homes and multi-unit buildings (e.g., apartment complexes).
The data is released monthly in the New Residential Construction report, which also includes information on housing starts and completions.
What the Data Shows
The data on new residential building permits is typically reported as a seasonally adjusted annual rate (SAAR). This means the raw monthly data is adjusted to account for seasonal fluctuations (like bad weather in winter) and then projected to an annual total. This allows for a more accurate comparison of activity from month to month.
The report breaks down the data by:
| • | Type of Structure: The number of permits for single-family homes versus multi-unit buildings. This is a crucial distinction as it indicates trends in different segments of the housing market. |
| • | Geography: Data is available at national, regional, state, metropolitan area, county, and by permit issuing levels. This allows for detailed analysis of local housing markets. |
Economic Significance
The number of new residential building permits is considered a leading economic indicator because it can predict future economic activity. A rise in permits suggests:
| • | Increased Construction Activity: More homes will be built, leading to more jobs in construction and related industries. |
| • | Investor and Builder Confidence: It signals that builders are optimistic about the future demand for housing. |
| • | Economic Growth: A strong housing market is often correlated with a healthy overall economy. |
Conversely, a decline in building permits can signal a slowdown in the housing sector and a potential cooling of the economy.
January 2023 - July 2025 for Irvine, CA
Source: ProximityOne Monthly Building Permits
