Explanation of Indicator
Building permit activity is an important economic indicator. The number
of units authorized by building permits reflects a considerable financial
investment in the state’s coastal areas. Building permits can also be
an indicator of carrying capacity (i.e., land available for development)
and of the results of growth management legislation. In order to protect
natural resources and/or to sustain current populations, some areas of the
state have enacted stricter policies regarding the issuance of building
permits. Thus, the number of units authorized is an indirect indicator
of people’s desire for sustainable communities.
The reported value of building permits is also an indirect economic indicator of the amount of disposable income invested in housing. The higher the value, the more money people are spending on constructing new housing or improving existing housing. It is important to note, however, that the value of building permits does not have a one-to-one correlation with the number of units authorized, since building permits are issued for improvements as well as for new construction.
Data Characteristics
SOURCE
This information is found in the Florida Statistical Abstract produced
annually by the Bureau of Economic and Business Research, College of
Business Administration, University of Florida, Gainesville, Florida
32611-2017, or at (904) 392-0171. The Abstract is available at most
major libraries. It may also be purchased from University Press of
Florida, 15 N.W. 15th Street, Gainesville, Florida 32611, or at
(904) 392-1351.
ACQUISITION
This information is available in hard copy format. The Abstract is
accessible at most libraries for no cost or may be purchased for $29.95.
COLLECTION
This information is collected annually for the state by county.
Data Limitations
These data are limited in several ways. The data are based on voluntary
reports from local building officials processed by the Bureau of the
Census. The number of units authorized by building permits does not
necessarily reflect the actual number of units built. Data may also
include estimates for non-reports. Value figures are estimated on a
cost-per-foot basis by each jurisdiction and may not be comparable with
other locations. A further limitation to these data is that they do not
break out additions from new structures, nor do they give any indication
as to the size of the buildings.
Data Analysis
The data show that, during the period between 1985 and 1991, there was
a declining trend in the number of building permits issued. This
declining pattern was present in both coastal and non-coastal counties,
which suggests that building declined in both areas. The number of units
authorized increased between 1991 and 1993, suggesting an increased
demand for new housing.
Year Coastal Non-Coastal Florida Counties Counties (Total) 1985 151,395 40,418 191,813 1986 159,593 32,693 192,286 1987 137,442 31,074 168,516 1988 111,023 35,755 146,778 1989 103,566 38,439 142,005 1990 72,394 30,041 102,435 1991 70,938 24,436 95,374 1992 79,433 22,626 102,059 1993 87,717 27,416 115,133
The value reported on building permits has been erratic. Except for a peak in 1989, there was a decrease in the value of permits from 1985 to 1991. However, in 1992 and 1993 the value of the permits appeared to be on the rise. The most recent increase in value may have been the result of the large amount of construction required after Hurricane Andrew. As with the number of authorized housing units, the coastal and non-coastal counties have followed the same general trend.
Year Coastal Non-Coastal Florida Counties Counties (Total) 1985 $11,436,776 $3,789,600 $15,226,376 1986 $11,542,319 $2,901,216 $14,444,535 1987 $10,738,433 $2,823,667 $13,562,100 1988 $10,772,615 $3,448,851 $14,221,466 1989 $12,025,597 $3,945,666 $15,971,263 1990 $ 9,046,326 $3,469,656 $12,515,982 1991 $ 9,213,206 $2,797,011 $12,010,217 1992 $10,450,302 $2,991,491 $13,441,793 1993 $11,348,336 $3,405,784 $14,754,120
