Sure, construction can't start until you have a building permit. It's possible that a project may get a building permit and then not start (e.g. because costs have gotten too high, or because the expected prices or rents have dropped too low), so building permits are like a ceiling for how much future construction we'll get. Housing starts can be lower than building permits, but they can't be higher.
Could you please explain more about how building permit values correlate with future construction?
Sure, construction can't start until you have a building permit. It's possible that a project may get a building permit and then not start (e.g. because costs have gotten too high, or because the expected prices or rents have dropped too low), so building permits are like a ceiling for how much future construction we'll get. Housing starts can be lower than building permits, but they can't be higher.