For the first six months of the year, single-family housing starts are down about half from the pace a year ago. Meanwhile the multifamily market is experiencing its best performance in seven years, with starts up more than double from the first half of 2007. Total housing units under construction are down 28 percent from a year ago, with 3,056 units permitted during the first six months of 2008.

While single-family new-home construction remains below normal, the pullback has led to a sharp decline in inventories, providing encouraging news for the local housing sector. The Kansas City Regional Association of Realtors reported inventory levels fell by more than 200 listings last month and has fallen below the 4,000-unit barrier for the first time since May 2004. A total of 3,910 homes were listed in inventory at the end of June, the lowest inventory total since September 2003.

“ Reducing new-home inventory is critical to quickening the recovery of the local housing market,” said HBA Executive Vice President/CEO Tim Underwood. “Inventory has fallen nearly 10 percent in the last two months. That is a healthy sign that consumers are continuing to enter the new-home market and that we are moving in the right direction.”

Underwood said home builders are continuing to push Congress to act on the housing stimulus package to provide a much needed boost to the housing market. The proposal would provide a tax credit of up to $8,000 on the purchase of a home for first-time buyers.

“ The combination of low mortgage rates, competitive prices and the tax credit would provide additional incentives for homebuyers,” Underwood said. “Getting first-time homebuyers into the market will spur housing across the board, reduce inventory and pave the way for construction to pickup in the months ahead.”

The Northland emerged through the first half of the year leading in market share with 31 percent of new-home permits. Clay County accounted for 22 percent of metro new-home activity with Platte County accounting for 9 percent. That marked the first time the Northland topped the market share leaders for the first six months of the year. Johnson County was the top metro county in new-home activity with 29 percent, while Jackson County ranked third with 18 percent. Cass County followed No. 4 Platte County with 8 percent, followed by Wyandotte County at 7 percent, Leavenworth County with 6 percent and Miami County at 2 percent.

Kansas City, Mo., led the list of top-permitting cities through June with 408 single-family home starts. Olathe ranked second with 207 units, followed by Lee’s Summit with 95 and Kansas City, Kan./Wyandotte County with 87. Rounding out the top ten were Overland Park with 80 units; unincorporated Platte County, 72; Blue Springs, 61; Raymore, 56; Shawnee, 55; and Lenexa, 51.

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.