A Look at Mid-Valley Building Permits and Construction EmploymentFebruary 2, 2018 Mid-Valley residential building permits are precursors to construction activity in the future. These permits are divided into four categories: single-family; 2-unit multi-family; 3- and 4-unit multi-family; and 5+ unit multi-family structures. Single-family permits have grown every year since hitting a low in 2011. The other three categories have been volatile and only the 5+ unit structure permits are adding any significant number of units to the housing mix.
These permits have forecast the increase in construction employment. The graph shows construction employment in the Mid-Valley and the number of residential permits (by type). These data suggests a strong correlation between the two data sets.
Single-family building permits have grown at an average annual rate of 5 percent and employment at 8 percent since 2013. If the trend of permits increasing in 2017 continues in 2018, construction employment should remain strong in the coming year as demand for housing continues to grow.