January Permit Report Predicts Active Spring Building (Jan. 2017)

New-home construction began 2017 on the upswing in metro Kansas City with residential production up 67 percent compared to January 2016, according to statistics compiled by the Home Builders Association of Greater Kansas City (HBA). A total of 458 single-family units were permitted last month — the highest January total since 2006.

Builders report that mild winter weather is a prime factor in their activity. Above-average temperatures and lower precipitation have helped to spark a stronger than normal winter construction season, boosting totals for what is normally one of the slowest construction months of the year. Single-family permits during the winter months of November, December and January total 1,205 for the 2016-17 season.

“As I’ve started to become acquainted with local builders,” said Josh Clark, newly appointed executive vice president of the HBA, “they are expressing confidence in the local economy and that is reflected in the strong permit numbers we are currently seeing.”

Activity in Kansas City, Mo., remained fairly constant between January 2016 and January 2017 with 71 and 73 permits issued, respectively. The cities of Olathe and Lee’s Summit were particularly busy in January 2017. Olathe increased to 61 permits, compared to 28 in 2016 and Lee’s Summit reported 50 permits as opposed to only nine in January last year. Likewise, Kansas City, Kan., issued 37 permits in January 2017, up from six during January 2016.

Click January 2017 Residential Permit Stats for the report.