The Total Residential Building Permits Issued measures the number of permits authorized for new housing construction, as reported by the U.S. Census Bureau’s Building Permits Survey. This indicator serves as an early signal of local housing supply, reflecting how quickly communities are adding new units to meet population growth and demand. Tracking residential permits helps cities understand development trends, identify potential gaps between housing supply and need, and evaluate whether current construction levels are sufficient to improve affordability, reduce overcrowding, and support long-term economic growth.

Why Does this Matter?

1. Building permits are a leading indicator of future housing supply

• Research shows that when housing construction fails to keep pace with population growth, rents and home prices rise, worsening affordability and displacement pressures. Tracking permits helps communities anticipate whether supply is meeting demand.¹

2. Residential construction supports economic growth and local jobs

• New homebuilding generates employment in construction, real estate, and related industries, and increases local spending through multiplier effects. Permit trends signal economic momentum and investment confidence.²

3. Permit activity shapes long-term growth

• Studies find that restrictive zoning and slow permitting processes significantly reduce housing production, contributing to shortages and spatial inequality. Monitoring permit issuance helps local governments evaluate whether planning and regulatory systems are enabling or constraining the development of needed housing.³

1. Been, V., Ellen, I. G., & O’Regan, K. (2019). Supply skepticism: Housing supply and affordability. Housing Policy Debate, 29(1), 25–40. https://doi.org/10.1080/10511482.2018.1476899
2. National Association of Home Builders. (2020). The economic impact of home building in the United States. NAHB Economics and Housing Policy Group.
3. Glaeser, E. L., & Gyourko, J. (2018). The economic implications of housing supply. Journal of Economic Perspectives, 32(1), 3–30. https://doi.org/10.1257/jep.32.1.3