Single-family construction permits in the eight-county metro were up 8 percent from the first two months of 2004. A total of 1,492 permits have been issued so far this year, up from 1,379 in 2004, which finished the year as the busiest on record for local new-home construction with more than 11,000 housing starts.

The rise in new-home construction is largely fueled by increases in areas where new-home prices are lower than the metro average and the variety of housing choices are more plentiful. In Missouri, activity in Cass County is up 54 percent so far this year and the Northland is up 32 percent. On the Kansas side of the state line, Leavenworth and Wyandotte Counties are up 24 percent and 13 percent respectively.

Johnson County, the largest market in the area for new homes, has posted an 11 percent decline and an average new-home price of more than $330,000 according to the latest statistics from the Kansas City Regional Association of Realtors. Jackson County, the second-largest county for new-home construction, is flat compared to last year.

This is a trend likely to continue as consumers seek communities offering more diverse housing choices, according to HBA Executive Vice President Tim Underwood.

“New home buyers are continuing to demonstrate a demand for more diverse housing choices, whether it is traditional single-family homes, villas, townhomes, condominiums or lofts,” Underwood said. “Communities that meet that need will attract a growing share of the market. With mortgage rates remaining low, there is still an unmet demand for new homes but price and good design will play a significant role in determining future growth.”

Kansas City, Mo., ranked as the top city for new single-family construction permits through February with 288, up 43 percent from last year. Olathe ranked second with 140 permits followed by Lee’s Summit with 130. Independence ranked fourth with 75 permits followed by Kansas City, Kan./Wyandotte County with 74. Rounding out the top 10 were Shawnee, 63; Raymore, 60; Overland Park, 59; Lenexa, 50; and Grain Valley, 47.

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.