The region’s residential construction market remains near record territory for the year-to-date despite the decline in May. A total of 4,408 single-family permits have been issued through the first five months of the year, just 5 percent off last year’s record pace and the third-highest total ever for the year-to-date.

The decline in new-home construction was expected as local home builders look to reduce new-home inventories, according to HBA Executive Vice President Tim Underwood. A recent report from the Heartland Multiple Listing Service showed a sharp 30 percent increase in new-home listings from the same time last year.

“New-home construction remains on pace with forecasts made at the beginning of the year,” Underwood said. “The industry expected 2005 to be another strong year for housing, but down slightly from last year. After a record-breaking first quarter of the year for new-home construction, we expected to see home builders slow the pace of new starts to allow the market to absorb some of the inventory build-up.”

Much of the decrease in new-home construction has occurred in Johnson and Jackson County, where permit totals are down 18 percent and 11 percent respectively. In contrast, construction in the Northland is up sharply, with Platte County totals up 17 percent and Clay County up 8 percent. New-home permits are also higher in Leavenworth County by 18 percent and in Cass County by 13 percent. Wyandotte County totals are down 4 percent while Miami County is down 34 percent.

“With mortgage rates dropping once again and the local economy remaining strong, there are many very positive conditions for new homeownership,” Underwood said. “The largest concern for home builders continues to be the ability to provide the right selection of housing choices demanded by home buyers to keep the local community and the economy growing.”

Kansas City, Mo., ranked as the top city for new single-family construction permits through May with 832 permits, followed by Olathe with 387 permits. Lee’s Summit ranked third with 316 followed by Overland Park with 229 permits. Rounding out the top 10 are Raymore, 199 permits; Shawnee, 186; Independence, 177; Kansas City, Kan./Wyandotte County, 175; Gardner, 164; and Lenexa, 131.

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.