Permits and Builder Confidence Increasing (Aug. 2015)
The number of residential permits continues to increase along with builder sentiment, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. The National Association of Home Builders reported that builder confidence has risen to the highest level since October 2005. Local builders are increasingly active as 425 permits for new single family residences were issued during August, an increase of 27 from the prior month and 73 more permits than in August of 2014. The year-to-date total of 2,971 is 7% higher than 2014’s total through August. Multi-family permits have slowed slightly from 2014’s record count, but are still quite active with 1904 units permitted through August.
“This increasing confidence reminds us that owning a home is a good investment in the long run. It’s a good time to buy and a good time to sell with interest rates still low, and home values and incomes picking up,” said Executive Vice President Sara Corless.
Cities in Johnson County have made it the most active county with a total of 1054 single family permits issued through August. Localities in the four Missouri counties of Clay, Platte, Jackson, and Cass have issued a combined total of 1,613 permits or 55% of the region’s activity. Kansas City, Missouri is the busiest municipality with 632 permits, followed by Olathe at 364, Overland Park with 264 and Lee’s Summit totaling 211.