December’s monthly total was up 25 percent from the same time last year and easily surpassed the previous best for the month of 833 permits issued in December 2002. December’s activity brought the total number of new-home permits issued in the metropolitan area to 11,084, up 3 percent from the record 10,741 issued last year.

Last year’s record total marked the third straight year and the fourth time in the last six years the metro area topped the 10,000 mark in new single-family home permits.

“The housing market conditions in 2004 were ideal for many local families to make the move to new-home ownership,” said HBA Executive Vice President Tim Underwood. “Low mortgage rates, low unemployment and high demand for new homes helped make 2004 the best year on record for single-family home construction in the metro area.”

The biggest trend in new-home construction activity in 2004 was the drop in market share for the area’s three largest home-building counties. Johnson, Jackson and Clay counties all posted slight losses in single-family permit activity, dropping from 76 percent market share in 2003 to a 72 percent share in 2004. Johnson County continued its slowdown in new-home construction, falling to 32 percent market share. The county has dropped 12 points in market share since peaking at 44 percent in 1998.

While the three biggest counties lost market share in 2003, the five other counties in the metro all posted gains in new-home construction, led by Miami County’s 57 percent jump. Leavenworth (up 21 percent), Platte (up 19 percent), Wyandotte (up 11 percent) and Cass (up 7 percent) all posted gains as well. All of these counties except for Platte County have an average new-home sales prices below the metro average. The average new home price in Platte County increased just 1 percent last year, the smallest increase in the metro.

“We saw a significant movement in 2004 toward new-home construction activity in communities where there are more housing choices, particularly for first-time home buyers,” Underwood said. “The ability to provide homes under $200,000 is difficult due to rising land prices, higher material costs and soaring taxes and fees imposed on new-home buyers.”

Underwood said the ability to provide the housing choices demanded by metro area new-home buyers will be essential for thriving communities in the future.

“Low mortgage rates have made it possible for more families to afford a new-home purchase,” Underwood said. “With mortgage rates expected to rise in 2005 and beyond, we will need to address other factors to reduce the costs of new homes, such as well-designed, compact, sustainable neighborhoods that create a sense of community while reducing the costs passed on to new-home buyers.”

Kansas City, Mo., finished 2004 as the top city in the metro for new-home construction for the third straight year with 1,869 single-family permits. Olathe ranked second with 987 permits followed by Lee’s Summit with 911 and Overland Park with 848.

Rounding out the top 10 were Kansas City, Kan./Wyandotte County, 483; Gardner and Independence, tied with 443; Raymore, 437; Shawnee, 422; and Lenexa, 379.

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.