Metro New Home Construction Edges Down in May (May 2021)
New housing starts in metropolitan Kansas City edged lower last month, according to statistics compiled by the Home Builders Association of Greater Kansas City’s (KCHBA). A total of 570 single-family permits were issued in May 2021, compared to the 618 single-family permits issued in April.
Click here to view the May 2021 Residential Statistics Report.
The region’s residential construction market remains elevated despite the decline in May. A total of 2,612 single-family permits have been issued through the first five months of the year compared to 2,076 during the first five months of 2020.
“The inventory of homes on the market in Kansas City continues to be very low,” said Executive Vice President Will Ruder. “Despite recent headlines suggesting that lumber futures prices are retreating from their historic highs earlier in the spring, futures prices do not reflect the actual cost of materials available in the short term. Considering the strong consumer demand, prolonged supply chain challenges, and the threat of future interest rate increases brought on by broader economic pressures, we recommend that buyers seeking a newly built home begin their process sooner rather than later.”
Kansas City, Mo., ranked as the top city for new single-family construction permits through May with 422 permits, followed by Olathe, Kan., with 328 permits. Overland Park, Kan., ranked third with 302 permits issued in May followed by Lee’s Summit with 275 permits. Rounding out the top five is Blue Springs with 129 single-family permits issued year-to-date.