The strong fourth quarter permit totals posted thus far shows the local home-building industry may be gaining momentum following a slower than usual summer construction season compared to recent history. November’s numbers boosted the total for the year-to-date to 9,604 single-family building permits, a 5 percent decline from the record 10,145 permits issued through November in 2004.

While 2005 currently ranks as the third busiest year on record for new-home construction in metropolitan Kansas City, the month-to-month pace has differed from convention. After a record-setting first quarter, activity during the spring and summer was lower but remarkable steady. HBA Executive Vice President/CEO Tim Underwood attributed November’s record-breaking rebound to improving confidence among both home builders and new-home buyers.

“Stronger sales in recent months show that consumers are continuing to enter the home-building market as the local economy creates jobs and mortgage rates remain historically low,” Underwood said. “The response from new-home buyers has allowed home builders to reduce their inventories and provided optimism for early 2006.”

The latest metrowide permit report shows that while new-home construction remains very strong, there are changes in the rate of growth among local counties. The three largest counties for new-home construction – Johnson, Jackson and Clay counties – have all posted double-digit percentage drops in new-home construction, while Cass, Platte and Leavenworth counties have seen double-digit percentage gains in new-home creation.

“The most successful communities remain those areas where there is a diversity of housing choices in both products and prices,” Underwood said. “That is increasingly important as new communities offer options and alternatives for consumers as to where they choose to live and work.”

Kansas City, Mo., leads the metro area in new-home construction with 1,626 single-family permits issued so far this year. Olathe ranks second with 833 permits, followed by Lee’s Summit with 729 permits and Overland Park with 557. Rounding out the top 10 are Kansas City, Kan./Wyandotte County, 463; Raymore, 456 permits; Shawnee, 383; Gardner, 364; Independence, 339; and Lenexa, 332.

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.