As many HBW subscribers are already aware, building permit data is an accurate, verified, and effective way to build your list of prospects, but permit data is also useful in business and strategy development, marketing efforts, and so much more. Today, we will focus on one of the many benefits gained from using permit data – identifying construction trends.
HBW’s construction data reports and related permit data can be a valuable resource for identifying construction trends in a given area, during a particular season, and within various sectors of the market. Here are several ways to analyze building permit data to gather insight into construction trends:
Types of Construction: With permit data, builders can gain a better understanding of the types of construction that are hot (and not). Simply categorize building permits by the type of construction activity, such as residential, commercial, industrial, or institutional; from there, analyzing the distribution of permits across the categories can reveal which sectors are experiencing growth or decline, types of construction on the rise, etc.
Geographical Analysis: HBW subscribers may use construction data reports to map building permits geographically and identify where construction activity is concentrated. This analysis can help pinpoint areas experiencing rapid development or redevelopment, and ultimately where the greatest demand will be for your services.
Time Series Analysis: By bringing in the many years of archived permit data available through HBW, users may analyze building permits over time to identify seasonal or cyclical trends in construction activity. When doing this, it is important to look for patterns such as increased permit issuance during certain months or years, which may be indicative of peak construction periods.
Building Size and Value: Examine building permit data to determine the size and value of permitted construction projects. Tracking changes in average building size or construction cost over a term of a year, several years, or more can provide insights into shifting market demands and economic conditions.
Permit Issuer Analysis: Analyze the entities issuing building permits, such as municipal governments or planning departments. Changes in the number or type of permit issuers could be indicative of shifts in regulatory policies or local government priorities; at the same time, it may also be a sign of other changes in the market.
Demographic Analysis: Any notable fluctuation in demographics is worth noting as one begins to track industry trends. By cross-referencing building permit data with demographic information, industry professionals are better able to identify construction trends that are driven by population growth, migration patterns, or changes in household structure. A classic example would be an increase in permits for multi-family housing developments which may correspond to a growing population of young professionals or retirees.
Comparison with Economic Indicators: To take construction trend analysis further, compare building permit data with broader economic indicators, such as GDP growth, unemployment rates, or housing affordability; correlations between building permit activity and economic indicators can help validate findings and provide useful information regarding context for construction trends.
Technological Trends: With the increased demand for sustainability and improved industry technology, it is helpful to use building permit data to identify trends related to specific construction technologies or sustainable building practices. For example, an increase in permits for green building certifications or renewable energy installations may indicate a growing emphasis on sustainability within the industry and/or a given region of interest.
Forecasting: With HBW’s archives, it is easy to use historical building permit data to develop forecasting models for future construction activity. Through Building Trend Activity Reports, subscribers can access past trends and incorporate factors such as population projections, economic forecasts, and regulatory changes, to make informed predictions about future construction trends.
By employing analytical approaches, industry professionals can leverage building permit data to gain valuable insight into construction trends, enabling them to make informed decisions and anticipate future market conditions.
For more information on construction business marketing tips, stay connected with the HBW Blog. To get ahead of construction activity and gain access to the latest permitting data in Florida, Texas, Georgia, Alabama and Oklahoma, contact HBW for more information on construction data reports and industry leads.