“The fundamentals of the local housing market remain very strong,” Underwood said. “Mortgage rates continue to float near historic lows and the economy is strong. The market is there for new homes. The challenge lies in providing the right housing choices demanded by Kansas City’s families.”

A total of 824 single-family building permits were issued in the metro area last month, down from 1,081 issued during June 2004. While Kansas City, Mo., remains the market leader with a 10 percent gain in year-to-date activity, the area’s largest housing market, Johnson County, has seen a 20 percent decline in new-home construction. Among the area’s top-ten home-building communities, only Raymore in Cass County has posted an increase in construction permits.

A total of 824 single-family building permits were issued in the metro area last month, down from 1,081 issued during June 2004. While Kansas City, Mo., remains the market leader with a 10 percent gain in year-to-date activity, the area’s largest housing market, Johnson County, has seen a 20 percent decline in new-home construction. Among the area’s top-ten home-building communities, only Raymore in Cass County has posted an increase in construction permits.

Underwood said area new-home inventories are above normal, which has fueled some of the decrease in new construction permits during late spring and early summer. But he also said a lack of developed home sites and rising construction costs have posed challenges to local home builders.

“Infrastructure issues have reduced the number of available home sites in many communities and significantly harmed affordability for many buyers,” Underwood said. “As a region, we need to address how we can expand housing choices for more families while still maintaining our high quality of life.”

Kansas City, Mo., issued 935 single-family construction permits in the first half of 2005. Olathe ranked second with 468 permits, followed by Lee’s Summit with 381 permits and Overland Park with 286. Rounding out the top 10 were Raymore, 269 permits; Kansas City, Kan./Wyandotte County, 223; Shawnee, 220; Independence, 206; Gardner, 186; and Lenexa, 151.

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.