Building Business News November 2018

Page 1

November 2018

Clay Shoot Camaraderie & Competition 600 E. 103rd Street | Kansas City, MO 64131


On the Cover: Clay Shoot 2018

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Skies cleared for one of the HBA’s most popular events.

Features Missouri South Council’s October Meeting

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Lee’s Summit was the focus of Missouri South Council’s final 2018 meeting.

Harold Phelps Joins Exclusive Group

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The HBA’s past presidents honored Harold Phelps at their annual dinner.

Young Professionals Hear from Experienced Builder/Developer Saul Ellis shared years of building industry knowledge with HBA YPs.

In Every Issue Calendar 4 New Members

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Anniversaries 19 Residential Permit Statistics

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Beautiful Day for Onsite Home Construction 101 in Terrybrook Farms On Oct. 18 participants in Construction 101 toured different phases of homebuilding in the Overland Park subdivision of Terrybrook Farms. Speakers from Rodrock Homes provided valuable insight on what goes into the development, permitting, framing, plumbing and inspections of a new home. Participants were given the chance to ask questions specific to their roles in the homebuilding process. Lunch was provided by the Street Wings KC food truck. The HBA hosts this event at least once a year, so keep an eye out for the next one!

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Nov/Dec Calendar Nov 7 – 9

Certified New Home Sales Professional Class

Nov 8

New Member Coffee

Mark Your Calendar with Spring Parade Dates

Nov 13 Board of Directors Meeting Nov 22-23

Happy Thanksgiving! -- HBA office closed

Dec 5

Inaugural Dinner Now that the 2018 Fall Parade of Homes is all wrapped up, the Parade committee and HBA staff are starting to work on the Spring 2019 Parade. The Parade will begin on April 27, 2019 and run through May 12. Entry deadlines are: January 18 for the early rate; February 1 for regular fee; and February 8 with a late fee. The Awards Celebration will be held on May 1.

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Station sponsor ProSource provided shooters with bacon and egg burritos

Trendstone shooters Bruce Rieke and his daughter Savannah

Clay Shoot Raises Funds for PAC, Foundation The HBA raffled off several guns and other items during its annual Clay Shoot at Powder Creek in Lenexa, Kan., on Oct. 11. Proceeds from the raffle, which totals nearly $4,000, will be split between the HBA’s PAC and the organization’s Foundation Fund. Ferguson team

Every participant was automatically entered into a drawing to win a Benelli Super Black Eagle 3 shot gun, worth about $1,700, which was donated by James Hardie Siding. Additionally, participants could buy raffle tickets for other prizes. • • • •

Jared Clayton won the Henry Golden Boy rifle (retail $550) donated by PTM Engineering and James Hardie Siding. Tom Woods won a Tri-Star Viper G2 20-gauge shotgun (retail $550), donated by Teague Lumber. John Daly won the CZ USA Canvasback that retails for $850, donated by PTM Engineering. Jarrett Sierks won the Benelli Super Black Eagle 3

Sponsored by Kitchens & Baths by Briggs, more than 150 people participated in the shoot. First, second and third place winners were announced in three flights: Continued on page 6 Lucky raffle winners and their prizes

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Clay Shoot Raises Funds Continued from page 5

Flight A • 1st Place Security Bank B Team • 2nd Place: Security Bank A Team • 3rd Place: United Heating & Cooling B Team Flight B • 1st Place: Kenny’s Tile • 2nd Place: Gary Kerns Homebuilders • 3rd Place: Roeser Homes Flight C • 1st Place: Ferguson • 2nd Place: Spire • 3rd Place: Factory Direct/Ferguson A Top Hot Shot award for the most hits went to Phil Gibbs Jr. with 99 out of 100. A Good Sport award for the most misses went to Christy Meers of Spire for 12 out of 100.

Arvest Bank team

The HBA would like to thank its sponsors of the Clay Shoot. Without them this event would not have been the success it was: • Kitchens & Baths by Briggs, Presenting sponsor • First Federal Bank, Breakfast sponsor • Sun Lumber, Lunch sponsor • Henges Insulation & Fireplace, Safety sponsor • Bank of Blue Valley, Beverage sponsor • Shamrock Cabinets, Cart sponsor • Builders FirstSource, Ammo bag • Harrison Street Pawn & Gun, Gun transfer services Appreciation also goes to the station sponsors for their support: • Bovard Insurance Group/2-10 Home Warranty • Canaan Stone Works • Capitol Federal • Dacor • Eclipse Insurance • Factory Direct/Ferguson • Hermes Landscaping • KC Building Supply Co • Kenny’s Tile • Kitchens & Baths by Briggs • Kohler Company • New Home Guide • ProSource of KC • Raynor Garage Door Co • Roberts Chevrolet Buick • Spire • United Heating, Cooling & Plumbing • Wilson Lighting • Kansas City Star Thank you to all who participated in the Clay Shoot!

Presenting sponsor Kitchens & Baths by Briggs

Shooters from Ferguson, Starr Homes and Kaw Valley Plumbing

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Klimes Named a 2019 IBS Scholarship Recipient Congratulations to Kameron Klimes of McCray Lumber and Millwork for being named an IBS 2019 Scholarship winner. Klimes is one of 21 future industry leaders who were selected to receive a scholarship to attend the 2019 NAHB International Builders’ Show (IBS), as part of the IBS Scholarship Program for NAHB members between the ages of 21-35. Kameron got his start in the trades as an apprentice carpenter in his hometown of St. Louis. In 2015, he committed to a year of service as an AmeriCorps National member with Habitat for Humanity of Kansas City. After his service, he stayed with Habitat as a construction supervisor. Through a generous lumber donation to his jobsite Kameron was introduced to McCray Lumber & Millwork. The opportunity presented itself to join McCray Lumber as an outside sales rep, and he made the leap. Though he no longer wears a tool belt, Kameron enjoys the visceral connection he has to his work. Watching the jobs he supplies go from a stack of material to a usable space keeps him motivated.

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Tommy Bickimer with Stacie Bratcher of Rebuilding Together

HBA’s Foundation Fund Supports Rebuilding Together The KCHBA is proud to support local organizations that are working to improve the city and its communities. Recently, KCHBA Foundation Fund Chair Tommy Bickimer presented Rebuilding Together with a check for $5,000 to support its mission of preserving affordable homeownership and revitalizing neighborhoods by providing free home repairs and modifications for neighbors in need. The Home Builders Foundation Fund of Greater Kansas City was formed in 2002 as the charitable arm of the Home Builders Association of Greater Kansas City. It is supported through contributions from HBA members and others. The Fund is dedicated to advancing a range of charitable, educational and community causes including: • Housing-related issues • Rebuilding declining neighborhoods • Restoration of existing structures • Building industry workforce • Housing-related education/scholarship • Housing disaster relief • Community re-development In addition to supporting Rebuilding Together, the Foundation Committee has plans to create four scholarships for students entering the residential construction management program at Pittsburg State University next year and to continue its support of the Builders Development Corporation. For information on contributing to the HBA’s Foundation Fund, contact any HBA staff member.

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50/50 Raffle Winners Announced During Parade Awards Ceremony Congratulations to the winners of the 50/50 raffle during the Fall Parade of Homes! The raffle raised more than $4,000. • Allen Gregory of Ferguson Bath, Kitchen & Lighting Gallery won a free page in the 2019 Spring Parade of Homes guide. • Dennis Shriver of Hearthside Homes of Kansas City won tickets to an upcoming Chief game. • Vickie Fastnacht of Cornerstone Bank won half of the pot in the 50/50 raffle. She split the pot with KCHBA’s Foundation Fund. Tommy Bickimer of Bickimer Homes and foundation committee chair presented the winners with their prizes. Thank you to everyone who entered the drawing as a way to support the KCHBA’s foundation fund.

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Missouri South Council Meeting Focuses on Lee’s Summit A number of public figures from Lee’s Summit spoke at the most recent Missouri South Area Council, which took place on Oct. 24 at Unity Village. Lee’s Summit’s Mayor Pro Tem Beto Lopez opened the meeting. According to Lopez, public services have seen some upgrades, but the city’s firehouses and roads need continued improvement. Lopez feels confident Lee’s Summit is attracting more developers than in years past, with high quality schools being a big draw. Assistant City Manager Mark Dunning also focused on development, both of the new and the pre-existing. “We need to also focus on what we have and not just continually build new,” stated Dunning. Many areas of the city are ready for new development except for a few roadblocks, such as lack of access to sewage lines. The developments that are going up have seen a slight increase in multi-family units, but the majority remain single-family. Despite a few potential setbacks, Dunning called Lee’s Summit one of the fastest growing cities in the Kansas City metro area.

Mayor Pro Tem Beto Lopez

Ryan Elam, the Director of Development Services, closed out the luncheon with a few words on how the city aims to meet the needs of the people as those needs continually change. Elam noted that redevelopment can be a bit trickier than new, but Lee’s Summit hopes to establish a committee to gain ideas on how to better serve the city in these aspects.

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JCW Implements Permit Changes as of October 1 As of Monday, Oct. 1, Johnson County Wastewater (JCW) implemented the following changes for multi-family permits (excluding apartments): 1. All multi-family permits will be processed similar to single-family residential permits.

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2. Applicants need to select the following application for permitting: “Multi-Family Residential Application (excluding Apartments)”. 3. No plans will need to be uploaded with the application. 4. Plot Plan: a. JCW will no longer require plot plans for single-family and multi-family residential permits b. Required connection information shall be noted on the permit application by the applicant and will be verified by JCW from asbuilts. Where as-built plans are not available in the older infill areas, the connection location and elevation will need to be field verified by applicant prior to permit issuance. JCW will determine if a plot plan is required for permitting, based on site conditions. 5. Please indicate the proposed water meter size for the units in the application. JCW will not require water meter size confirmation from the water purveyor prior to permit issuance. 6. Apartment buildings will be permitted under the same requirements as commercial projects. 7. Please refer to the following “Residential Sanitary Sewer Connection Permit Checklist” for additional information.


Harold Phelps Inducted into Past Presidents’ Club The annual past presidents’ dinner was held Oct. 24 at J. Gilberts in Overland Park. Past HBA presidents welcomed Harold Phelps into the group with fanfare as they gave Harold the official past presidents medal and pin along with a harness and safety vest.

Bob Frost, Paul Robben, Bruce Rieke and Buzz Dulaney

With nearly 40 years of municipal and land development engineering experience, Harold is a highly regarded leader among his peers. He serves as the Chair of the University of Kansas, Civil Engineering and Architectural Engineering Department Advisory Board and was recently recognized for his contributions to the industry with the highest honor available from KU’s Engineering Dept., the Distinguished Engineering Service Award. Harold joined the Kansas City HBA in 1990 — the same year he started Phelps Engineering, Inc. He has served in many leadership positions within the association including but not limited to chair of the Developer’s Committee, member of the Governmental Affairs Committee, member of the HBA’s Political Action Committee, member of the Finance Committee, member of the Nominations Committee, and a member of the Executive Committee for 4 years.

Phil Acuff and Craig Eymann

Brenner Holland with Harold Phelps

Congratulations, Harold!

John Moffitt, Jr., Mike Brown, Tom Woods and Mark Hoffman

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Years of Experience Shared with Young Professionals Saul Ellis of Saul Ellis and Company held a series of weekly educational classes throughout October specifically for young professionals to learn about the business side of building. Topics ranged from financial planning to acquisition and strategy. This series of classes was specifically limited to a group of nine YP builders to facilitate one-on-one interactions between Saul Ellis and the group. The Young Professionals Committee plans to continue to hold educational classes throughout 2019 to further professional development in various areas of the industry as well as expand the size of the classes to engage more participants. One of the class attendees, Brian Tebbencamp, owner of Patriot Homes, expressed his thoughts on the class. “Very informative and the experience proves you can always learn something new! I welcome the opportunity and the chance to learn more about my trade from someone with so much experience. Thanks, Saul.�

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HBA Presents Defender of Housing Award to Rep. Yoder HBA board members thanked Congressman Kevin Yoder for his support of the home-building industry at the October board meeting by presenting him with NAHB’s Defender of Housing award. Afterward, Yoder toured a New Mark Homes job site in Terrybrook Farms. The Defender of Housing Award recognizes courageous federal legislators who have demonstrated strong support for housing and NAHB positions on key issues facing the industry. Rep. Yoder has been a tireless advocate for housing and homeownership during his time in Congress. He recently co-sponsored important legislation to improve the low-income housing tax credit and signed a letter to the administration calling for a new softwood lumber deal with Canada. Additionally, Congressman Yoder has voted time and again to support reducing the regulatory burdens heaped on home builders. The HBA greatly appreciates his support of the housing industry.

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Congressman Graves Accepts Defender of Housing Award from HBA

Opportunities to Build in Sugar Creek

On Wednesday, Oct. 31 Congressman Sam Graves met with KCHBA members to discuss industry issues and accept his 2018 National Association of Home Builders’ Defender of Housing Award. Congressman Graves has been a consistent advocate for small businesses and housing during his time in Congress, and in particular, over these past two years has carried an “A” rating with the National Association of Home Builders. Additionally, Congressman Graves has voted time and again to support reducing the regu- Rep. Graves with members of HBA’s Young latory burdens heaped on home builders, Professionals. including the repeal of EPA’s misguided Waters of the United States (WOTUS) rule and to improve opportunities for America’s small businesses and working families. The HBA would like to thank KCHBA’s President Gary Kerns and his wife Amy for hosting the event at Kerns Homebuilders’ new location in Platte City.

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The Sugar Creek Community Development Corporation (SCCDC) is in the process of developing several residential building sites in the City. The SCCDC is looking for builders who would be willing to enter into a contract which would provide the building lot at no initial cost, with reimbursement upon sale of the home. There is also interest by the Bank of Grain Valley in possibly assisting with the financing. Sugar Creek is a town of approximately 3300 population, located just north of Independence. Sugar Creek offers all the charm of a small town with the advantages of a big city location. Interested builders should contact Stan Salva, president of the SCCDC at stansalva10@gmail.com.


HBA Recognizes Rep. Hartzler as a Defender of Housing The HBA recently presented Rep. Vicky Hartzler with the Defender of Housing Award, which recognizes courageous federal legislators who have demonstrated strong support for housing and NAHB positions on key issues facing the industry. In doing so, former NAHB Chairman Tom Woods noted that: •

Rep. Hartzler has been a consistent and powerful advocate for housing and homeownership during her time in Congress and, in particular, over these past two years carrying an “A” rating with the National Association of Home Builders.

Mark Mather, Bob Frost, Tom French, Tom Woods, Rep. Vicky Hartzler, Shawn Woods and Allen Gregory

Hartzler co-sponsored important legislation to improve the low-income housing tax credit and signing a letter calling for a repeal of the Obama Administration’s flawed Federal Flood Risk Management Standard.

Congresswoman Hartzler has voted to support reducing the regulatory burdens heaped on home builders, including the repeal of EPA’s misguided Waters of the United States (WOTUS) rule, and to improve opportunities for America’s small businesses and working families.

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New Members Apple Roofing, LLC Danny Sullivan 5251 W 116th Pl, Ste 200 Leawood, KS 66211 (913) 730-6109 www.appleroofingllc.com Roth Living Kathie Rogers 601 W 47th St Kansas City, MO 64113 (816) 556-3322 www.rothliving.com Ten Two Inc. dba REconstruct Lynneah Gregory 5400 Johnson Dr Ste 374 Mission, KS 66205 (913) 440-4934 www.reconstructkc.com

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Affiliates Apple Roofing, LLC Jarrod Kline Joe Tickle Richard Gunter 5251 W 116th Pl, Ste 200 Leawood, KS 66211 (913) 730-6109 www.appleroofingllc.com Sprint Lumber, Inc. Jim Bulcock 6024 NE US Hwy 169 St. Joseph, MO 64505 www.sprintlumber.com


Anniversaries 1958 Renner Supply Company 1972 Riffe Construction Co. 1975 Lambie Custom Homes, Inc. 1978 Tiffany Marble, Inc. 1982 Rieke Concrete Systems 1983 Wallboard Specialties, Inc. 1988 Cornelius Homes, Inc. 1995 Gianni Custom Homes, LLC Rodrock Homes, LLC 1998 Gale Homes, Inc.

2000 Brackmann Construction Curby’s Lawn & Garden Keller Williams Realty Partners, Inc. 2001 Mize Houser & Company, CPAs Sun Lumber Company, LLC 2002 Affinity Homes Starr Homes, LLC 2004 Erosion Control Inc. 2005 New Mark Homes, LLC 2006 New Bedford Land Development Company, LC Owens Built Properties, Inc. The Kansas City Star

2010 Curth Concrete Basement Construction 2012 Hunt Midwest Residential, LLC Wells Fargo Home Mortgage 2013 Clayton House, LLC Lakeshore Homes, LLC 2014 Interurban Restoration & Construction Sprint Lumber, Inc. 2015 Higgins Stone Company Kansas City Remodel & Handyman Allen, LLC Patriot Homes, Inc. Prime Development Land Company, LLC

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2015 Raynor Garage Door Co., Inc. of KC Walnut Trails 2016 Kohler Company Roberts Chevrolet Buick 2017 Cellular Only Central Energy Audits Day3 DVP Homes Insight Enriched Marketing Napoleon Fireplaces Open Mortgage Precise Forms, Inc Redesign KC


HBA Staff Marcia Jurgens Vice President of Administration marcia@kchba.org 816-733-2215 Gina Battle Director of Parade of Homes gina@kchba.org 816-733-2219

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Permits Dip in September Local cities and counties permitted 337 single family units in September, a decrease of 177 from both the prior month of August and from September 2017. With a year-to-date total of 4,485 permits, 2018’s activity is now 3 percent lower than it was for the same time period in 2017, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. Multi-family unit permits (five or more units in one building) have surpassed the same period last year, with 2,562 units permitted in 2018 compared to 1,627 in 2017.

GIVE THANKS FOR MOMENTS LIKE THESE.

Whether September’s decrease is attributable to builders taking a breather to catch up with their summer contracts, or whether it indicates the headwinds of rising housing costs and mortgage rates have slowed construction, is not clear at this point. In any case, 2018’s year to date total remains the second highest permit count since 2008, with the exception of last year.

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Kansas City remains the top permitting city, with 577 permits issued in Clay and Platte counties and 70 in Jackson county, for a year-to-date total of 647 (a 13 percent decrease from 2017). Likewise, Johnson county’s top two cities of Olathe and Overland Park have a combined decrease of 128 permits, or 16 percent. Overall, Johnson county’s permit total has increased, with growth in De Soto, Leawood, Lenexa, Prairie Village, Spring Hill and Westwood.

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The Official Publication of the Home Builders Association of Greater Kansas City November 2018 • Volume 24 • Issue 10 Copyright 2018 Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 • (816) 942-8800 Editor Marcia Jurgens Contributing Writers Kari English, Paige Waltman Graphics Karla Peterie, Creative Services 2018 Executive Committee President Gary Kerns Vice President Shawn Woods Secretary/Treasurer Jerry Braklow Immediate Past President Harold Phelps Associate Representative Rosemary Vitale Past Presidents Representative Bob Frost

To subscribe to Building Business News call (816) 733-2217 To advertise in Building Business News call (816) 733-2215 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org

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Residential Building Permit Statistics

Residential Building Permit Statistics CASS COUNTY Archie Belton Cass County Cleveland Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd

CLAY COUNTY Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville JACKSON COUNTY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek PLATTE COUNTY Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston JOHNSON COUNTY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Roeland Park Shawnee Spring Hill Westwood

Single MultiFamily Family Total Units^ Units% Units 0 0 3 0 0 0 1 3 5 1 17 0 30

0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 3 0 0 0 1 3 5 1 17 0 30

September 2018

SEPTEMBER 2018

S-F Units YTD

M-F Units YTD

Total Units YTD

0 54 58 0 1 8 10 33 51 15 157 10 397

0 0 0 0 0 0 0 0 0 0 12 0 12

0 54 58 0 1 8 10 33 51 15 169 10 409

3 0 1 38 0 0 4 0 0 6 52

0 0 0 0 0 0 0 0 0 0 0

3 0 1 38 0 0 4 0 0 6 52

31 12 12 417 94 0 36 1 0 133 736

0 0 0 0 0 0 0 0 0 0 0

31 12 12 417 94 0 36 1 0 133 736

19 0 15 0 0 4 10 4 0 25 2 0 0 79

5 0 0 0 0 0 0 0 0 0 0 0 0 5

24 0 15 0 0 4 10 4 0 25 2 0 0 84

327 0 104 12 0 114 66 70 16 287 17 0 0 1013

15 0 0 156 0 0 0 971 0 180 0 0 0 1322

342 0 104 168 0 114 66 1041 16 467 17 0 0 2335

15 6 0 8 1 0 0 30

0 0 0 0 0 0 0 0

15 6 0 8 1 0 0 30

160 70 1 139 24 11 0 405

0 0 0 0 0 0 0 0

160 70 1 139 24 11 0 405

4 0 0 3 5 9 19 0 0 23 30 8 0 5 9 0 115

0 0 0 0 0 0 0 0 0 12 200 0 0 0 0 0 212

4 0 0 3 5 9 19 0 0 35 230 8 0 5 9 0 327

29 0 7 102 40 46 274 1 4 406 296 47 0 105 120 4 1481

0 0 0 0 0 0 0 0 0 34 1194 0 0 0 0 0 1228

29 0 7 102 40 46 274 1 4 440 1490 47 0 105 120 4 2709

Single MultiFamily Family Total Units^ Units% Units LEAVENWORTH COUNTY Basehor 7 0 7 Lansing 0 0 0 Leav. County 7 0 7 Leavenworth 2 0 2 Tonganoxie 2 0 2 18 0 18 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Cty MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill Totals

S-F Units YTD

M-F Units YTD

Total Units YTD

95 1 65 25 25 211

0 0 0 0 0 0

95 1 65 25 25 211

0 0 11 11

0 0 0 0

0 0 11 11

7 1 152 160

0 0 0 0

7 1 152 160

0 0 0 2 0 2

0 0 0 0 0 0

0 0 0 2 0 2

13 45 0 5 19 82

0 0 0 0 0 0

13 45 0 5 19 82

337

217

554

4485

2562

7047

Comparison of Single Family Building Units for Greater Kansas City (Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties) Month/Year January February March April May June July August September October November December Annual Total

2011 90 121 180 210 230 262 204 205 202 205 185 207 2,301

2012 188 182 270 277 294 268 288 260 379 331 283 279

2013 273 224 335 444 337 333 409 354 384 369 340 288

2014 287 216 362 439 385 364 375 352 383 468 312 328

2015 240 260 393 437 395 438 399 425 462 459 360 432

2016 274 408 542 523 503 578 494 536 424 466 417 352

2017 2018 457 425 477 461 571 550 562 542 504 594 567 577 512 485 480 514 514 337 583 502 468

3,299

4,090

4,271

4,700

5,517

6,197

4,485

Comparison of Permits By Units Issued Year to Date

2011 2012 2013 2014 2015 2016 2017 2018

S-F Units 1704 2406 3093 3163 3449 4282 4644 4485

2011 - 2018 M-F Units 600 1062 2098 3168 2521 3521 1627 2562

Total Units 2304 3468 5191 6331 5970 7803 6271 7047

^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units. # Not available at time of report Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available. Copyright 2018 Home Builders Assoc of Greater Kansas City. All rights reserved.

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