Episode Show Notes:

• Building permits are a powerful source of data—not just for contractors and consumers but also for predicting the overall economy beyond real estate.
• We’ll explore recent building permit data and discuss efforts underway to make the permitting process easier and more streamlined.
• Builders and contractors often face delays and bureaucracy with permits; we’ll cover new technologies and systems designed to make this process more tech-friendly and efficient.
• Recent data shows that new home building permits remain steady at about 1.8 million, consistent over the past year and a half despite interest rate rises.
• Historically, permits were under 1.5 million before 2020, but COVID-related shifts pushed that number higher, with permits and housing starts rising while completions lag due to material and labor shortages.
• Delays in completing homes are caused not only by labor shortages in construction but also by staffing shortages within government permit departments.
• For example, in Colorado Springs, home construction rose despite higher mortgage rates, highlighting regional variations in the market.
• In Wake County, North Carolina, single-family home permits increased by 22%, but staffing shortages in permit offices cause significant delays, sometimes ranging from 36 hours to two weeks.
• These delays create inefficiencies for builders—like scheduling subcontractors without knowing if permits will be approved on time, leading to costly downtime on job sites.
• Some municipalities, like Phoenix, are adopting new electronic permit systems (e.g., Shape Phoenix) that allow 24/7 online applications, status checks, and communication to reduce manual paperwork.
• Private sector startups are also working on technology to shorten the permitting process nationwide, though coordinating thousands of jurisdictions with different requirements remains a challenge.
• Understanding permit efficiency is key for builders, and even consumers can track permits in their areas to gauge market trends and neighborhood development.
• Monitoring permit volumes regularly can provide valuable insights into local economic activity, new construction, and business opportunities.
• Share your experiences with permit and zoning departments in the comments—we’d love to hear your stories.