HBA Executive Vice President/CEO Tim Underwood said the drop in new-home inventory is a good sign for the local market, furthering illustrating that the local housing market is continuing to fare much better than housing nationwide.

“New-home inventories have been the No. 1 concern for local home builders during the past year,” Underwood said. “The fact that inventory is on the decline is a positive step because it means not only are builders taking steps to reduce new-home starts but it also shows that families are continuing to buy new homes at a strong pace. Local new-home sales remain very positive compared to recent years and are especially strong when looking at other housing markets nationwide.”

While single-family home totals are down from one year ago, strong performances among multifamily for-sale home and rental homes have boosted the local market. In terms of total units, the metropolitan area is off just 3 percent from one year ago.

“There is little doubt that we are in a changing market,” Underwood said. “The market for new homes remains very strong thanks to low interest rates and a solid economy. The key for home builders is to meet the market by providing the housing choices that are demanded by local families. The rise in multifamily homes for both sale and rent underscores how diverse the local housing market is.”

The multifamily market is on pace for its best performance in more than five years, boasting an increase of 130 percent jump in rental units and a 109 percent hike in for-sale homes.

Among single-family homes, Platte County has continued to produce the strongest new-home starts figures in 2006, posting an 8 percent gain from a year ago. Growth in the area has largely been driven by new projects near the Platte City area and along the Highway 152 corridor. The county’s market share has increased from 7 percent to 9 percent. The area’s largest market share belongs to Johnson County, which has dropped from a 30 percent share to 26 percent share so far this year.

Kansas City, Mo., leads the metro area in single-family new-home construction for the year-to-date with 1,948 new units. Olathe is second with 780 units followed by Lee’s Summit with 584 and Overland Park at 462. Rounding out the top 10 are Kansas City, Kan./Wyandotte County with 453 units; unincorporated Platte County, 326; Lenexa, 315; Belton, 307; Raymore, 280; and Independence, 278.

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.