In contrast, residential construction permits nationally are down 28 percent from one year ago according to the U.S. Census Bureau. A total of 8,242 single-family units have been issued in metro Kansas City thus far this year, a decline of 18 percent compared with a hefty 32 percent decline nationwide. The brightest spot on the local housing landscape has been the multifamily market, where multifamily for-sale permits are up 148 percent for the year-to-date and multifamily rental home permits are up an astounding 188 percent. On the national level, multifamily housing activity is down a collective 9 percent.

The numbers illustrate that despite concerns over a harder-than-expected landing for housing in booming locations along the coasts and in the Southwest, Kansas City has much stronger fundamentals than most metro regions nationwide, according to HBA Executive Vice President/CEO Tim Underwood.

“Starts and sales numbers continue to show that Kansas City is in a far better position than most other markets and significantly outperforming national figures,” Underwood said. “The biggest concern locally is that too many consumers, municipalities and even home-building professionals are making decisions locally based upon what is happening in Phoenix and Atlanta, not what is happening in Kansas City.”

Underwood said forecasts continue to call for an increase in both new-home prices and mortgage rates in 2007, meaning that consumers who buy now will be able to take advantage of both higher appreciation and thousands of dollars in interest savings over the life of a mortgage. He also said the decline in single-family permits should prompt both builders and local communities to take a hard look at whether homes being built are the right products in the right locations demanded by local consumers.

“While builders are continuing to adjust to higher inventories by slowing down speculative construction, the decline in single-family permits does not mean the entire market is down,” Underwood said. “The fact is that certain home builders and communities are thriving in the current environment because they are building the right housing choices. Locations where housing starts are down should consider whether they are building the choices demanded by consumers, especially among the growing groups of prospective new-home owners, such as empty nesters, singles and first-time homeowners.”

Kansas City, Mo., leads the metro area in single-family new-home construction for the year-to-date with 1,838 new units, an increase from 1,824 units a year ago. Olathe is second with 731 units followed by Lee’s Summit with 529 and Overland Park at 445. Rounding out the top 10 are Kansas City, Kan./Wyandotte County with 412 units; unincorporated Platte County, 306; Lenexa, 303; Raymore, 272; Independence, 267; and Belton, 262.

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.