A total of 833 single-family permits were issued metrowide in December, a nearly 20 percent month-to-month increase versus December 2001. For the year, new home permit activity was up 15 percent compared to 2001.

"There is no doubt that the home-building industry both nationwide and here in Kansas City has helped to boost the economy during uncertain economic times," said HBA Executive Vice President Tim Underwood. "Homeownership is a critical component of the overall economic health and vitality of a metropolitan area. We need to make sure we build on the success of the past year to ensure the availability of housing choices for all families in the metropolitan area."

According to a panel of housing and economic experts at the HBA's annual housing forecast held Jan. 13, the metropolitan area's new home construction prospects are strong for the coming year. Predictions call for construction activity to be on par with 2002, assuming that interest rates remain favorable, the local job market rebounds as expected and there are no adverse consequences from a possible war with Iraq.

The forecasters noted that the ability of the Kansas City housing market to provide a broader mix of housing choices will be essential to future growth. While Kansas City continues to sport one of the nation's most vibrant upper-bracket new homes market, there is a growing demand for new homes under $175,000 for working families, young professionals and other first-time new home buyers.

"Compared with other comparable metropolitan areas such as Indianapolis or Nashville, Kansas City lags behind in providing wider housing choices for first-time new home buyers," Underwood said. "Local cities, developers and home builders will need to take a closer look at alternative forms of development that have proven successful elsewhere in providing a mix of housing choices, including a healthy market for first-time home buyers."

While single-family construction was at near record levels in 2002, multi-family activity took a dip. A total of 3,619 multi-family units were permitted metrowide last year, down more than 30 percent from the 5,287 units permitted in 2001.

"The multi-family market can fluctuate much more quickly than single-family construction," Underwood said. "In addition, we are seeing more attached single-family homes that appeal to many consumers who would normally consider multi-family communities."

Kansas City, Mo., finished 2002 as the top-permitting city with 1,586 single-family permits issued through October. Olathe, which led the metropolitan area in permits each of the last four years, ranked second with 1,200, followed by Lee's Summit with 887 permits.

Rounding out the top-permitting cities for the year were Overland Park, 816; Shawnee, 442; Independence, 373; Lenexa, 343; Raymore, 337; Wyandotte/Kansas City, Kan., 295; and Grain Valley, 285.

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.