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Megan Wilde's avatar

Could you please explain more about how building permit values correlate with future construction?

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Russil Wvong's avatar

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.

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