April’s performance improved the metro’s year-to-date housing numbers. A total of 3,520 single-family residential units have been permitted so far in 2006, 13 percent off the record total of 4,028 units permitted during the first four months of 2005. April’s totals were in line with national trends that showed housing starts off 7 percent last month.

Permit declines in February and March came on the heels of a record winter building season which saw the metro set new monthly highs in the fourth quarter of 2005 and January of this year. April’s activity marked an improvement from February and March levels when permits were down 21 percent from one year ago, suggesting that the market is slowly absorbing higher inventories, according to HBA Executive Vice President/CEO Tim Underwood.

“April’s permit activity shows that home builders are taking a closer look at speculative construction and moving to reduce new-home inventories,” Underwood said. “New-home sales remain positive and are slightly ahead of last year’s record pace, which indicates a very strong demand for new-home ownership. The key remains getting the right housing choices in the right locations and right prices that are in demand by consumers.”

Permit activity by location is sporadic across the metro. While Miami and Cass counties lead the metro with a 31 percent and 29 percent gain respectively followed by Wyandotte County up 20 percent and Platte County up 12 percent, Clay County leads the decliners with a 32 percent drop followed by Jackson County down 22 percent. Construction in Johnson County is down 18 while Leavenworth is down 14 percent. However, comparisons in Clay and Jackson counties are somewhat skewed due to elevated permit activity in 2005 spurred by a building code change in Kansas City, Mo.

“The most common link we see with permit activity right now is the new-inventory level,” Underwood said. “Locations such as Clay and Jackson counties where permit activity is down are good signs that builders are keeping close tabs on inventories.”

Kansas City, Mo., leads the metro area in single-family construction year to date with 719 units. Olathe ranks second with 260 units followed by Overland Park with 232 and Lee’s Summit with 224 units. Rounding out the top 10 are Kansas City, Kan./Wyandotte County with 206 units; Lenexa, 141; unincorporated Platte County, 137; Independence, 130; and Raymore and Pleasant Hill, 127.

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.