A total of 6,894 single-family permits have been issued so far in 2006, which is in line with revised forecasts for new-home construction in the metro. While local home builders are decreasing their inventory of speculative homes, many expect conditions to remain positive for consumers shopping for new homes, according to HBA Executive Vice President/CEO Tim Underwood.

“The slow down in new-home construction coincided with a short-term increase in mortgage rates earlier this spring and summer prompted by the Federal Reserve Board’s efforts to engineer a soft landing for the housing market,” Underwood said. “The moderate decrease from the rapid rate of construction in recent years to more sustainable levels is being achieved, and we are now seeing mortgage rates stabilize. That combination of factors should establish the foundation for a stronger housing market later this year and in 2007.”

One sign of the strength of the local housing market is the HBA’s annual Parade of Homes, which opens Sunday, Sept. 24. This year marks a new record for the 59th annual housing event with 730 new homes open for viewing. Parade homes are open daily 11 a.m. to 6 p.m. through Oct. 8, providing local consumers with an opportunity to see the latest in new-home construction design and techniques. Complete details about the parade are available online at www.kchba.org.

While single-family construction is lower than one year ago, much of the slack has been picked up by multifamily construction. Three major apartment projects in the Northland and Independence were permitted in August, helping to boost year-to-date multifamily totals to more than double from one year ago. Combining both single- and multi-family construction, a total of 8,952 residential units have been permitted in 2006 down less than 1 percent from last year.

“As single-family construction slows, we do expect a rebound in the multifamily construction market,” Underwood said. “The multifamily market in metro Kansas City is showing signs of a recovery.”

Kansas City, Mo., leads the metro area in single-family new-home construction for the year-to-date with 1,489 new units. Olathe is second with 604 units followed by Lee’s Summit with 439 and Overland Park at 390. Rounding out the top 10 are Kansas City, Kan./Wyandotte County with 306 units; Lenexa, 275; unincorporated Platte County, 269; Raymore, 238; Independence, 226; and Gardner, 222.

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.