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

Between April and May 2008, residential construction permit activity in most Bay Area regions continued to decrease. Compared to April, the East Bay saw a decrease of $44.9 million and San Francisco a decrease of $211.4 million, while permit values in San Jose were up $51.9 million during the same period. In a year-over-year comparison with May 2007, the East Bay declined $122.9 million, San Francisco permits were $86.2 million lower, and the Vallejo-Fairfield area posted a decline of $36.8 million. The San Jose region showed a $25.6 million dollar increase, and the Napa region posted a $5.6 million increase during the same period.

Between April and May 2008, the San Jose and Vallejo-Fairfield regions were the only two Bay Area regions to post increases in non-residential permit values, increasing $6.5 million and $9.7 million, respectively. Permit values in the East Bay were $5.7 million lower in May than in April, while San Francisco posted a decrease of $50.9 million and Napa posted a decrease of $1.5 million. In a year-over-year comparison with May 2007, all Bay Area regions posted declines. The East Bay posted a decrease of $1.4 million while San Francisco and San Jose posted losses of $36.9 and $33 million, respectively.

12-MONTH ANALYSIS OF CONSTRUCTION PERMITS

The following tables and graphs compare the 12-month periods of June 2006 – May 2007 and June 2007 – May 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 19.7percent ($799.3 million) from the previous period. The San Francisco and Napa regions posted increases of $744.3 million and $76.3 million, respectively, while the San Jose and Vallejo-Fairfield regions saw decreases of $54.9 and $375.9 million during the period.

RESIDENTIAL & NON-RESIDENTIAL PERMITS

When comparing the two previous 12-month periods of June 2006 – May 2007 and June 2007 – May 2008, the San Francisco and Napa regions both posted increases 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 34 percent from $2.8 billion in 2007 to $1.8 billion in 2008. Non-residential permit values continued to post increases in a year-over-year comparison 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 increased 19.2 percent 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 49 percent, 23.8 percent, and 26.9, respectively. Industrial permit values jumped 32.5 percent in the East Bay region, and a staggering 244.3% in Vallejo-Fairfield and 108 percent in Napa. Industrial permits in San Francisco and San Jose were both down over the previous period, posting declines of 87.3 percent and 19.3 percent, respectively.

SINGLE & MULTI-FAMILY PERMITS

With the exception of an increase in mutli-family residential permits seen in the San Francisco region, all Bay Area regions saw residential construction declines when compared with the previous 12-month period. The East Bay’s drop from over 4,700 multi-family unit permits in the 2006-2007 period to just over 2,700 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 commercial and Industrial construction contributing to the increase. Non-residential construction showed a small decline in Contra Costa County, most likely in institutional construction, as both industrial and commercial construction increased in the County. Residential permits in both Alameda and Contra Costa Counties continued to decrease dramatically.

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 May 2008.

Top