Kansas City, Mo., began 2005 where it has finished each of the last three years, at the top of the list of local municipalities in new-home activity. The city issued 144 single-family permits in January, a 40 percent increase from the 103 permits issued in January 2004.

Cass and Clay counties posted the best starts to the new year at the county level. Residential construction in Cass County more than doubled from the first month of last year with 89 single-family permits issued in January compared to 43 permits in January 2004. In Clay County, permit activity soared 59 percent where 164 permits were issued compared to 103 permits last year.

All other counties in the metro posted slower starts to 2005 compared to last year, which finished as the strongest year on record for new-home construction in metropolitan Kansas City. Due to the strong start in Clay County and slower activity in Johnson and Jackson counties, Clay County ranked second in new-home permits, accounting for 25 percent of local activity. Johnson County, which finished 2004 with 33 percent market share, accounted for 27 percent of new-home permits in January. Jackson County ranked third with 22 percent.

HBA Executive Vice President Tim Underwood said the start to 2005 could be a harbinger for the long-term future of the local housing market.

“The main trend in recent years has been the steady growth of areas such as Clay and Cass counties where housing choices are available for a broader cross-section of the market,” Underwood said. “New-home buyers in traditional market leaders such as Johnson and Jackson counties are seeing rising new-home prices and less selection as land costs and new-home buyer taxes rise and home sites become scarce.

Following Kansas City, Mo., in the rankings were Olathe with 73 single-family permits and Lee’s Summit with 54 permits. Raymore ranked fourth with 42 permits followed by Kansas City, Kan./Wyandotte County with 33. Rounding out the top 10 were Independence, 29; Shawnee, 27; and Belton, Lenexa and Overland Park tied with 24.

The Home Builders Association of Greater Kansas City (HBA) is the voice of the housing industry and the source for housing information. Comprising more than 1,000 member companies, the HBA represents an industry that contributes more than $2.5 billion to the Kansas City economy and supports more than 36,000 jobs in the Greater Kansas City metropolitan area.