A total of 6,035 single-family unit permits have been issued year to date, down 14 percent from the 7,051 units permitted through the same period in 2005. The anticipated slowdown in new home starts this summer comes at a time when many housing economists continue projecting a soft landing for the housing market from the torrid record-setting pace established in recent years.

New-home consumers have received good news in recent weeks with 30-year mortgage rates dropping more than a quarter-point during the last month. According to Freddie Mac, the average rate for a 30-year mortgage last week was 6.52 percent, the lowest average rate since April. The drop in interest rates combined with targeted incentives from home builders make the current market very attractive to buyers, according HBA Executive Vice President/CEO Tim Underwood.

“The combination of low mortgage rates and exclusive promotions are creating exceptional new-home ownership opportunities for local families,” Underwood said. “The fundamentals supporting homeownership in Greater Kansas City remain strong. We have positive job growth, low unemployment and a thriving economy. Those factors combined with favorable mortgage rates should help home builders continue to reduce inventory in the months ahead.”

Underwood said the industry continues to project lower construction starts for the balance of 2006 as part of the cool down in the housing market. But he stressed that local cities and home builders can mitigate the economic impact of lower housing starts by promoting alternative development practices that promote greater affordability and more housing choices.

“The weakening of affordability has sapped much of the strength of the housing market,” Underwood said. “Rising new-home prices have discouraged investors and made it more difficult for families to make the move to new-home ownership. Addressing the issue of housing costs is essential to maintaining economic development and growth while providing the housing choices needed by local families.”

Kansas City, Mo., leads the region in single-family new-home construction for the year-to-date with 1,280 units. Olathe is second with 555 units followed by Lee’s Summit with 359 and Overland Park at 350. Rounding out the top 10 are Kansas City, Kan./Wyandotte County with 291 units; unincorporated Platte County, 256; Lenexa, 249; Independence, 195; and Raymore, 194; and Gardner, 190.

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.