March 2008 Monthly Analysis > Construction

CONSTRUCTION PERMITS

The following two charts of residential and non-residential permit values issued in each of the Bay Area's regions since February 2005 provide a quick, comparative view of activity.

Between January and February 2008, the dollar value of residential construction permits fell $9 million in the East bay, and fell $89 million in San Francisco and $18 million in San Jose. When comparing February 2007 and February 2008, permit values the East Bay decreased $118 million, while San Jose fell $34 million. In San Francisco, permit values were $12 million higher than in February 2007.

With the exception of the Vallejo-Fairfield and Napa regions, non-residential permit values increased between January and February 2008 around the Bay Area. In the East Bay, values were up $15 million over January, while San Francisco gained $125 million and San Jose gained $45 million. When compared with February 2007, permit values were up in all Bay Area regions, with the East Bay issuing $25 million more in non-residential permits, San Francisco issuing $164 million more and San Jose $53 million more.  

12-MONTH ANALYSIS OF CONSTRUCTION PERMITS

 The following tables and graphs compare the 12-month periods of March 2006 – February 2007 and March 2007 – February 2008. This method provides a year-over-year comparison and can be less volatile than the month-over-month comparison in the previous section (used to show a historic overview of construction permit values).

RESIDENTIAL & NON-RESIDENTIAL PERMITS

When comparing the two previous 12-month periods of March 2006 – February 2007 and March 2007 – February 2008, the San Francisco region was the only MSA to see an increase in the dollar value of residential permits issued. The steepest decline in this comparison of residential permit values was in the East Bay region, where residential permit values fell over 29 percent. With the exception of the Vallejo-Fairfield region, total non-residential (commercial, industrial and institutional) permit values increased around the Bay Area, with the largest increase in San Francisco.

NON-RESIDENTIAL -- COMMERCIAL & INDUSTRIAL

In a comparison of commercial and industrial construction permits issued during the same two 12-month periods, the dollar value of commercial permits issued in the East Bay showed a small increase of $37 million. In the Napa, San Francisco and San Jose regions, larger increases in commercial permit values occurred, with these regions seeing increases of $109, $267, and $264 million, respectively. Industrial permit values fell $9 million in the East Bay region, fell $176 million in San Francisco and fell $77 million in the San Jose region. The Napa and Vallejo-Fairfield regions saw increases of $49 and $52 million, respectively.

SINGLE & MULTI-FAMILY PERMITS

With the exception of the moderate increase in residential permits seen in the San Francisco region, all Bay Area regions saw declines when compared with the previous 12-month period. The East Bay’s multi-family construction has fallen from close to 5,000 multi-family unit permits in the 2006-2007 period to just under 2,600 multi-family permits in the 2007-2008 period.

EAST BAY CONSTRUCTION

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

When compared with the twelve-month period ending in 2007, Alameda County continued to see non-residential permits increase, all in commercial construction. Residential permits in Alameda County continued to decrease dramatically. In the same comparison, Contra Costa County residential and commercial permit values declined, while industrial permits advanced 20.5 percent over the previous period.

The slowing of the housing market was visible in the declines in both single and multi-family construction permits issued over the past twelve months. In this comparison, multi-family construction in Alameda County was hardest hit, dropping over 60 percent when compared with the previous period.

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 2008.

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