For the fourth month in a row, single-family permit activity in the Kansas City area is down compared to last year, according to statistics compiled by the Home Builders Association of Greater Kansas City (KCHBA). A total of 447 units were permitted in May compared to 579 in May 2021. A total of 2,172 single-family permits have been issued this year, a decrease of 19 percent compared to the first five month of 2021.

“New home construction is one of the most interest-rate sensitive sectors in the U.S. economy,” said Will Ruder, executive vice president of the KCHBA. “The combination of elevated interest rates, building material prices, and high inflation being experienced by consumers has led to a more cautious approach to construction. To add to all of these pressures, certain cities around the metro are considering new costly building standards that, if enacted, would further slow the rate of construction and add tens of thousands of dollars in consumer costs to each home. It’s a particularly terrible time to erect additional financial barriers to new home ownership, but that’s exactly what a handful of city councils are seeking to do.”

Year-to-date, Kansas City, Mo., has issued the most permits at 346, and Olathe has issued the second most permits with 248. Rounding out the top five are Overland Park with 200 permits issued, Lee’s Summit with 192 permits issued and Raymore with 131 permits issued so far this year.

Click here to view the May 2022 Residential Statistics Report.