A new analysis from the National Association of Home Builders analyzed the jobs-to-permits ratio. The analysis used net new jobs created in 2024 and measured against housing permits issued in 2023 to gauge the typical time required for permitted units to move through the construction pipeline and reach the market. Using this framework, the analysis revealed that the U.S. economy added approximately 1.8 million net new jobs in 2024 relative to 2023, while total housing permits issued in 2023 reached 1.51 million units. This results in an overall jobs-to-permits ratio of 1.2, indicating that the economy added 1.2 new jobs for every housing unit authorized.
Strong labor market growth continued to put pressure on the nation’s housing supply in 2024, as home building activity did not fully keep pace with demand driven by job gains. Recent data suggests a balanced ratio of jobs-to-permits has decreased between 1.25 and 1.5 jobs per housing permit. However, this ratio is highly dependent on sub-regions and whether the income levels of new jobs match the affordability of the houses being built.
