Research Facts & Figures > Economic Forecasts & Updates > March 2007 Analysis > Construction Permits

Construction Permits

 

The following two charts of residential and non-residential permit values issued in each of the Bay Area’s regions since February 2004 provide a quick comparative view of activity.  Data follows in subsequent tables.

In February 2007 the East Bay, Napa and San Francisco Metropolitan Statistical Areas (MSA) experienced moderate increases in the value of residential construction permits issued.  The East Bay saw a 49 million dollar increase over January 2007, the largest month-over-month increase throughout the five MSAs. 

Non-residential permits showed a similar trend in February, with the East Bay, San Francisco and Napa MSAs seeing increases over January.  Permit values in the San Francisco MSA had been decreasing steadily since a spike in October of 2006, when permit values reached an astonishing $450 million.  In the San Jose and Vallejo-Fairfield MSAs, month-over-month declines were moderate.

When comparing the two previous twelve-month periods of March 2005-February 2006 and March 2006-February 2007, the San Jose region was the only Bay Area region to see an increase in the value of residential permits.  In the East Bay, the value of residential permits issued was roughly $425 million less, or 12.6 percent lower, in the period ending February 2007 than in the previous period ending February 2006. The East Bay saw a slight increase in non-residential permit values, while the San Francisco and San Jose regions both saw large increases in non-residential permits during the same period.

A comparison of commercial and industrial permits for the same two twelve-month periods shows commercial permit values in the East Bay, San Francisco, and San Jose regions between March 2006 and February 2007, were higher than in the previous twelve-month period.  In San Francisco, roughly $148 million more in commercial permits were issued than in the previous twelve-month period. 

In terms of industrial permits, the East Bay, San Francisco and San Jose regions saw permit value increases.  Industrial permit values were up roughly $12 million in the East Bay.  San Francisco saw a significant increase of $143 million in the second twelve-month period, and in San Jose the increase in the dollar value of industrial permits was roughly $58 million.

 

In the twelve-month period ending February 2007, the East Bay saw a substantial decrease in the number of single-family unit permits issued, while the number of multi-family permits increased.  The San Francisco, Napa and Vallejo-Fairfield regions saw decreases in both single and multi-family permits issued, while San Jose saw a moderate decrease in single-family permits and a significant increase in multi-family permits.

 

The following tables examine these permit categories for the same comparative time periods for Alameda and Contra Costa Counties.

In Alameda County the most remarkable change occurred in the value of industrial permits issued, which was up over 44 percent over the previous 12-month period.  Alameda County commercial permit values decreased 18.2 percent during the second 12-month period, while residential permit values were virtually unchanged, increasing less than 1 percent.  In Contra Costa County, the story was quite different.  Commercial permit values increased substantially, and were over 64 percent higher than in the previous 12-month period, while residential and industrial permit values were significantly lower in the same comparison.

Construction Permit Values 

March 2005 – February 2006

 

March 2006 – February 2007

Change

% Change

Alameda County Residential

$1,491,077,711

$1,500,926,015

$9,848,304

0.7%

Alameda County Non-Res

$827,340,097

$747,176,279

-$80,163,818

-9.7%

Alameda County Commercial

$231,526,660

$189,394,043

-$42,132,617

-18.2%

Alameda County Industrial

$32,293,973

$46,592,108

$14,298,135

44.3%

Contra Costa County Residential

$1,894,393,172

$1,458,879,814

-$435,513,358

-23.0%

Contra Costa County Non-Res

$369,861,049

$457,939,395

$88,078,346

23.8%

Contra Costa County Commercial

$85,904,285

$140,283,584

$54,379,299

63.3%

Contra Costa County Industrial

$20,475,897

$14,529,412

-$5,946,485

-29.0%

In the same comparison, both Alameda and Contra Costa Counties saw decreases in the number of Single-Family construction permits issued.  Multi-family permits increased in Alameda County, and decreased slightly in Contra Costa County.

 

 

Housing Unit Permit Comparison

 

March 2005-

 February 2006

March 2006-

February 2007

Change

% Change

 

Alameda County Single-Family Units

 

1610

1603

-7

-0.4%

 

Contra Costa County Single-Family Units

 

5257

3393

-1864

-35.5%

 

Alameda County

Multi-Family Units

 

3449

3921

472

13.7%

 

Contra Costa County

Multi-Family Units

 

926

915

-11

-1.2%

The following charts show the number and value of single, multi-family, residential and non-residential construction permits issued in East Bay cities for the twelve-month period ending February 2007.