May 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 April 2005 provide a quick, comparative view of activity.

Between March and April 2008, residential construction permit activity in the Bay Area was varied. The East Bay saw an increase of $15.2 million and San Francisco an increase of over $121.4 million, while other Bay Area regions saw only minor month-over-month changes. Permit values in the Vallejo-Fairfield region increased $2.1 million over March 2008, while the San Jose and Napa areas posted losses of $2.6 and $1.1 million, respectively. In a year-over-year comparison with April 2007, the East Bay declined $35.7 million while the San Francisco area showed a $40.8 million increase. The San Jose region posted a $79 million decline, while the Vallejo-Fairfield and Napa regions declined $23.7 and $7.6 million, respectively.

Between March and April 2008, the East Bay and Napa regions were the only two Bay Area regions to post increases in non-residential permit values. Permit values in the East Bay were $32.7 million higher in April than in March, and in Napa permit values were $1.8 million higher during the same period. During the same period, the San Francisco, San Jose and Vallejo-Fairfield regions saw losses of $3.2 and $86.7 million and $1.4 million, respectively. In a year-over-year comparison with April 2007 the East Bay gained $30.4 million and the Napa region gained $1.8 million, while the San Jose, San Francisco and Vallejo-Fairfield regions decreased by $28.7 million, $20.6 million, and $26.6 million, respectively.

12-MONTH ANALYSIS OF CONSTRUCTION PERMITS

The following tables and graphs compare the 12-month periods of May 2006 – April 2007 and May 2007 – April 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 all construction permit values).

In a comparison of these two twelve-month periods, the East Bay showed a decrease in construction permit values, falling 18.3 percent ($757.5 million) from the previous period. The San Francisco and Napa regions posted increases of $856 million and $97 million, respectively, while the San Jose and Vallejo-Fairfield regions saw decreases during the period.

RESIDENTIAL & NON-RESIDENTIAL PERMITS

When comparing the two previous 12-month periods of May 2006 – April 2007 and May 2007 – April 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 31 percent. Non-residential permit values in the second 12-month period continued to be higher than those in the previous period in all areas but the Vallejo-Fairfield region.

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 rose $37.3 million when compared to the previous period. In the Napa, San Francisco and San Jose regions, commercial permit values were also higher, with these regions seeing increases of $20.8, $243.3, and $97.5 million, respectively. Industrial permit values jumped $23.3 million in the East Bay region, and increased over $57.4 million in Napa, while the San Francisco region saw a steep decrease of $183.1 million in the second 12-month period.

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 drop from over 4,600 multi-family unit permits in the 2006-2007 period to just over 2,800 multi-family permits in the 2007-2008 period was the most dramatic of the declines.

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, with Industrial construction making up the lion’s share of this increase. Residential permits in Alameda County continued to decrease dramatically. In the same comparison, Contra Costa County residential and non-residential permit values declined overall, while commercial and industrial permits advanced 10.3 and 19.5 percent, respectively, over the previous period. The small decline in overall non-residential permits in Contra Costa County can be attributed to permits issued for institutional projects.

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 50 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 April 2008.

Top