Improvement in the construction industry, as measured by single family permits, has contributed to the recovery from the Great Recession.
Looking back, the number of annual permits grew steadily from 1991 to 2006.
After bottoming out in January 1991 at 587,000 annual permits and the average number of permits added that year was 751,000. In September 2005, the number of permits peaked at 1,798,000 and the average number of permits added that year was 1,685,000. Over this period of 15 years months the average number of single family permits increased at an average annual rate of 62,233 units per year.
After the Great Recession hit, the number of monthly permits bottomed out at 379,000 in February of 2011. The average number of permits issues for 2011 was 420,000. In 2013 the number of permits increased to 614,000. For this two year period, permits are being added at an average annual rate of 97,208.
The story of the construction industry continues to be one of good and bad news. Over the past two years, the rate of new single family permits being issued is greater than during the boom years. The problem is the greater recession created such a hole, it seems like there is little construction activity.
©Copyright 2011 by CBER.