February 2016
Anticipation Building for 2016 Home Show Economic Forecast Report – page 4 Participate in IBuild – page 5 Area Councils for 2016 – page 7
Register now to hear the Bow Tie Economist’s Industry Outlook. See page 4
The Greater Kansas City Home Show is one of the most highly anticipated events for spring 2016 as Chip and Joanna Gaines return to the show stage. Members of the general public have been calling the KCHBA office for months to ask when tickets will go on sale. Chip and Joanna Gaines, stars of HGTV’s Fixer Upper, will make three presentations at the show: Saturday (March 19) at noon and 3 pm and Sunday (March 20) at noon. Saturday’s noon presentation will be open only to a limited number of VIP ticket holders. The VIP ticket, available only through on-line purchase, is priced at $25 and includes home show admission and a guaranteed seat at the presentation. In order to accommodate the large crowds expected at Chip and Joanna’s later appearances, a second stage with an increased seating capacity will be used. A general admission ticket ($10 in advance or $12 at the box office) will be valid for these presentations.
Along with the Gaines, popular returning speakers include Jennifer Bertrand (HGTV Design Star winner), Jennifer Allwood (The Magic Brush), Kristin Rieke (Rak’Designs), and Chris Ragland (Homes by Chris). These Kansas City favorites will share their building expertise and design advice from the SPACES stage. The KCBHA is particularly proud to announce that Darol Rodrock, representing the show’s Continued on page 14
Share Your POV with Kansas City The KCHBA invites member builders, remodelers, architects and designers to join the line-up of speakers at the 2016 Greater Kansas City Home Show. The home show stage is the perfect place to share your point of view regarding home design, improvements that can be made through thoughtful remodeling, and fresh design ideas with an avid crowd of consumers. Past presenters have told us that this speaking opportunity has led to greatly increased visibility and business leads. Please send presentation proposals to Tricia French (tricia@kchba.org) by Feb. 15th.
www.kchba.org | Volume 22, No. 2 | February 2016
February Calendar Feb. 10 Elliot Eisenberg Presentation Feb. 16 Board of Directors Meeting Feb. 18 Lunch, Learn & Earn Code Credit Feb. 24 Missouri North Area Council Meeting
Federal Update: WOTUS and Confined Spaces
For more information or to register for any event, go to www.kchba.org or call 816-942-8800
In a victory for homebuilders across the country, Congress has approved legislation that overturns the EPA’s broad and overreaching “Waters of the United States” (WOTUS) rule. The new rule vastly expands the jurisdiction of the Clean Water Act, meaning that virtually every body of water in the country, from rivers to ditches, are subject to federal regulation. According to NAHB Chairman Tom Woods, “By dramatically extending the areas in which home builders are required to get permits, the rule will lead to bureaucratic delays, increase project costs and mitigation fees, and harm housing affordability.” On January 13, the US House of Representatives approved a Senate-passed resolution, the Congressional Review Act (S. J. Res. 22), that rescinds the WOTUS rule and mandates that it will have no force or effect going forward. The KCHBA and NAHB commend our local House and Senate members who voted in favor of the resolution and demonstrated 2
their long term support of the home building industry. Unfortunately, the current Administration is not in agreement with Congress about the rule and will likely veto the legislation and render it ineffective. However, the rule is still being challenged in the courts—a process that might last several years. On October 9 the U.S. Court of Appeals for the Sixth Circuit issued a nationwide stay of the rule due to concerns over its legality. In other federal news, the Occupational Safety and Health Administration (OSHA) has further delayed the enforcement of the new Confined Spaces in Construction Standard until March 8, 2016. The rule was initially passed on May 4, 2015 and became effective August 3, 2015. The temporary stay applies to construction on single-family homes, duplexes and townhouses in federal jurisdictions. OSHA has also stated that any employer making good-faith efforts to comply with the standard will be exempt from citations.
February 2016 | Volume 22, No. 2 | www.kchba.org
Save the Date: Bringing Housing Home, March 7-11, 2016 The last two years have been a rousing success for NAHB’s Bringing Housing Home™ Legislative Conference. These in-district meetings, especially important in this presidential election year, are critical to enhance relationships with our elected officials and showcase the economic benefits of the housing industry.
ing issues that affect your business and our industry.
The 2016 Bringing Housing Legislative Conference takes place during the week of March 7-11. At that time, every NAHB member is encouraged to meet with their U.S. representative and senators in their home offices and talk to these federal lawmakers about the press-
KCHBA staff are in the process of scheduling meetings with your legislators to enable you to make your voice heard on important housing issues. Meetings will be announced in This Week at the HBA and through e-mail messages.
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While the House will be in recess during the week of March 7, the Senate will be in session. However, we anticipate opportunities will exist to meet with your senators in their home districts during this period.
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www.kchba.org | Volume 22, No. 2 | February 2016
Economic Forecast 2016
Elliot Eisenberg Presented by the Sales & Marketing Council Wednesday, Feb. 10, 2016 9:00 am—Coffee & Croissants 9:30 am — Presentation
From left to right: Chris Kuehl, Armada Intelligence; Brenner Holland, Hunt Midwest Residential; Rob Croake, Wells Fargo Home Mortgage; and David Crowe, NAHB Chief Economist
Register now to hear one of the KCHBA’s favorite speakers, Elliot Eisenberg, give us his outlook on economic conditions and the housing industry. Elliot specializes in making the arcana and minutiae of economics fun, relevant and educational. HBA member cost-$20; non-member cost-$40 (SMC members ask for discount pricing). Seating is limited, so contact Tricia right away to reserve your spot: tricia@kchba.org or 816-942-8800.
More than 175 people attended the HBA’s Economic Forecast Breakfast on January 13 at the Overland Park Convention Center to hear from David Crowe, Chief Economist and Senior Vice President, the National Association of Home Builders, and Chris Kuehl, Co-founder and President, Armada Intelligence.
Chris Kuehl’s presentation emphasized that the USA’s diversified economy is reflected in Kansas City’s own wide range of industries and neighborhoods. Kuehl urged the audience to ignore hysteria in the media and in the political campaigns, pointing out that China has only a small direct effect on the US economy. He went on to stress that thoughtful business decisions are crucial when the economy is in neither a recession or a boom-time. Now, when conditions are approaching normality, business success The 2016 Economic Forecast is one of the KCHBA’s most depends on making the popular annual events. right decisions. Crowe provided a review of the housing In answer to audience questions, both industry before, during and after the reeconomists agreed that the rate of incession. He noted that while housing crease in housing prices will flatten out starts have now doubled from the trough and should settle at about 1% above the of 2009, the volume is still at only half of general inflation rate. They also noted the normal rate established in the early that the move-up segment of the hous2000’s. He predicted a continued ining market will probably start to heat crease in building activity, reaching 87% up, while increased activity in the starter of normal by the end of 2017. Accordmarket is still several years away. ing to Crowe, the two major headwinds The KCHBA appreciates Wells Farthat may hinder this growth are shortaggo Home Mortage’s sponsorship of the es in both construction labor and suitable 2016 Economic Forecast Breakfast. lots for home building.
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February 2016 | Volume 22, No. 2 | www.kchba.org
2016 Workforce Development Initiatives According to NAHB Economist David Crowe, over 61% of builders in 2014 listed the availability of labor as a significant problem in the industry. The accompanying chart demonstrates the relationship between housing starts and the labor shortage since 1996. The item
Thinking about your
the younger generation, working with groups that help connect students with jobs, such as the Boy Scouts and Pittsburg State University, and organizing outreach programs to get women into the trades.
future workforce?
ousing Starts (Area) andA large-scale (direct) event toLabor educate potential Housing(Bars) Starts (Area) and (direct) Labor Shortage (bars) hortage
The Home Builders Association of Greater Kansas City and the National Institute for Construction Excellence can help.
Shortage 60%
Starts (000s)
2,000
50% 1,500
KCHBA is offering time slots for 20 members to promote their companies at the HBA booth during the IBuild Showcase at Bartle Hall, an annual exposition and major event which brings students together for an opportunity to actively connect with industry professionals.
40% 30%
1,000
20% 500
10%
0
Contact Katie Walkley at 816-942-8800 or katie@kchba.org to learn more and sign up.
0% 2015
2014
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2009
2008
There are a variety of ways that members can get involved in local workforce development initiatives. They include attending local job fairs and high school career days, coordinating on-site construction classes to spark interest in
2007
The KCHBA’s recent survey found that 87% of local member companies are planning to hire new employees in 2016. The issue of labor shortage in the industry stems from the amount of people who left the workforce during the recession. Many of those workers have not returned to construction, meaning there are numerous positions left unfilled. KCHBA created a Workforce Development Task Force to understand how the labor shortage is affecting the Kansas City metro area and how the association can help companies replenish their staff with a new generation of workers.
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to note is that the labor shortage is highNAHBany June 2015 er than timeSurvey in recent decades even though housing starts have not regained even the level of the mid-1990’s.
Deadline for registration is March 7th at 5:00pm.
employees, the IBuild Showcase created by the National Institute for Construction Excellence (NICE), will be held on April 14th at Bartle Hall. The KCHBA has booked a booth for members to promote their companies at the Showcase. Members interested manning this booth, becoming more active in workforce development or receiving notifications about upcoming job fairs/career days, should contact Katie Walkley (katie@ kchba.org) for more information.
Artisan Tour Reminder
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For any members planning to enter a home in the 2017 Artisan Tour, the deadline for submitting a letter of intent and $1000 deposit is April 15th. Please contact Gina Battle (gina@kchba.org) for more information.
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www.kchba.org | Volume 22, No. 2 | February 2016 FHFA and S&P/Case-Shiller Home Price Indexes 250
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Little Agency Roars!
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FHA Index
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Home Prices in October — Moving Toward the Trend Line
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The Case-Shiller (CS) National Home Price Index, released by S&P Dow Jones Indices, rose at a seasonally adjusted annual rate of 11.0% in October. The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 6.0%. Both indexes show monthly volatility but the trend has been relatively flat over
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2014 and 2015. House prices declined at the fastest pace in late 2008 as the housing bust approached its bottom. From 2009 through 2011 the pace of decline slowed as the housing market limped along the bottom of the bust. Price declines turned to increases in 2012 and 2013 as the housing recovery Continued on page 7
February 2016 | Volume 22, No. 2 | www.kchba.org
Area Councils Gear Up for 2016 The KCHBA’s 3 area councils (Missouri North, Missouri South and Kansas) will be re-activated in 2016 and will begin with a meeting in the north area on February 24th at the Staley Farms Clubhouse. The meeting will feature Kansas City, Missouri officials, who will discuss the current status of development in the northland and the future outlook. Any interested member is invited to
attend – contact katie@kchba.org for information or registration. Area councils will meet on a rotating basis throughout the year. The Kansas Area Council will meet on March 23rd, followed by Missouri South on April 27th. Each council will focus on topics of special interest to that particular area of the metro; however, all members are welcome to attend any of the meetings.
Appreciation goes to the leaders of Area Councils:
Home Prices
Missouri North: Chair Matt Ernst, Ernst Brothers Home Construction Co-Chair Brent Dobberstine, Dobberstine Custom Homes Missouri South: Chair Justin Pfeifer, Pfeifer Homes Co-Chair Patrick Willis, Willis Custom Homes Kansas: Chair Rocky Rhodes, Allure Luxury Homes Co-Chair Tommy Bickimer, Bickimer Construction
Continued from page 6 gained momentum. The relative stability in the trend in 2014 and 2015 represents a housing market settling back toward long term sustainable trend growth rates. The accompanying chart shows the FHFA and S&P/Case-Shiller price index levels from 1991 to 2015. The trend lines (dashed) indicate that the stabilization of price growth coincides with house prices returning to their long term trend path. Eye on the Economy, By Jing Fu on January 5, 2016 7
www.kchba.org | Volume 22, No. 2 | February 2016
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(katie@kchba.org) for information or to register ($50/members or $100/ non-members). Education for 2016 is sponsored by Wells Fargo Home Mortgage.
February 2016 | Volume 22, No. 2 | www.kchba.org
Are You Fully Prepared to Shine in a Stabilizing Market? As the economy continues to move from recession to recovery, there is plenty of opportunity for builders and remodelers who are prepared to take advantage of it.
PROMISE
Estimating, purchase order and scheduling systems are often overlooked when streamlining operations, but taking them into consideration can have a profound
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First, review the steps you took to manage your business as the recession deepened. You may have streamlined operations, eliminated personnel, or reevaluated products and offerings and the associated costs. You even may have diversified into remodeling, commercial work, energy-efficient retrofits, weatherization or another industry-related business. Next, evaluate all the changes made, measure their success and effectiveness and use that knowledge to prepare your business for the future. Streamlining Operations. Automation can have a long-lasting, positive impact on a business if done correctly. Successful automated systems delegate routine and repetitive tasks, enabling staff members to do what they do best — solve problems, work with clients and provide exemplary service.
effect on business success.
LOVE WHAT YOU BUILD.
Builders often fail to recognize that the best part of an estimating system is its job-cost function. How can an automated estimating system be beneficial if it’s not routinely checked against actual costs? Failing to check variances on each project results in the same mistakes becoming part of every new job moving forward. Estimates should always mirror the job-cost system and vice-versa.
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Builders and remodelers also fall into the trap of thinking that one more job during a given time can make them more profitable. The reality is that the additional job can cause inefficiency, lost time, lost profits and poor customer relationships. The goal for any business should be to do more jobs over a given period of time by increasing the efficiency and speed, or velocity, of the projects. A well-thought-out schedule Continued on page 10
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www.kchba.org | Volume 22, No. 2 | February 2016
Are You Fully Prepared to Shine in a Stabilizing Market? Continued from page 9 that is continually monitored and has achieved buy-in from your team will increase that needed velocity. And with regard to purchase orders, they’re not just unnecessary paperwork. A successful purchase order system validates estimates. All materials and work should come directly from the estimate and additional materials or work orders should be flagged as a variance. Reviewing the variance purchase orders on a regular basis can help illuminate errors in estimates and change orders. Purchase orders can also automate record-keeping and save you time. Keep in mind that faulty automating procedures replicate mistakes faster and more frequently, often without being noticed. Solidify Hiring Practices. As the indus-
Evaluate Products. When the market is good, it seems that whatever we build or remodel is successful. But when the market tanks, the reverse is also true. The key is to build what you know — not what you think will sell. And then identify what you do well, what consumers are demanding, and how you can best satisfy that demand. Find your niche and make the most of it. To do that, determine the selling price comfort level of your target consumer. Working from there, deduct your desired margin. What you’re left with is your cost of delivering that project.
try begins to emerge from the downturn, you have a once-in-a-business cycle opportunity to find and bring on the best personnel for your company. Begin your search by carefully evaluating where you need help most. Determine what you do best, what you don’t like to do and where you can reap the most benefit. Remember that the goal is to increase efficiency. Simply adding people may not serve that purpose. Understanding your systems and processes will help you define jobs and responsibilities. Detailed, written job descriptions and responsibilities will aid in finding the right fit.
Often builders calculate in the opposite
10
direction to their detriment. They start with their product cost and then add their markup. Not surprisingly, when the job is complete they find themselves priced out of their target market because by customer move-in, with all the costs fixed, all they can do is cut their margin. Evaluate Diversification. As markets improve and work becomes more plentiful, make sure to evaluate what to keep doing and what to move on from. Determine which services will provide profit or become a drain on your core business. Remember, your goal is to work more efficiently and at a greater profit while building customer satisfaction. You cannot afford to blur your focus with products or operations that do not support those goals. NAHBNow, 1/4/16
February 2016 | Volume 22, No. 2 | www.kchba.org
HBA Staff Sara Corless Executive Vice President scorless@kchba.org, 816-733-2216
Kelcee Schlotzhauer Events and Administration Assistant kelcee@kchba.org, 816-942-8800
Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219
Katie Walkley Government Affairs Manager katie@kchba.org, 816-733-2241
Dawn Allen Director of Member Services and Events dawn@kchba.org, 816-942-8800
Marcia Jurgens Director of Administration marcia@kchba.org, 816-733-2215
Tricia French Special Projects Assistant tricia@kchba.org, 816-733-2241
The Home Builders Association of Greater Kansas City Thanks the 2016 Sponsors AFFINITY SPONSOR
Stewart Specialty Insurance Services PLATINUM SPONSORS
St. Louis – Kansas City Carpenters’ Regional Council Kansas City Star Media Company Wells Fargo Home Mortgage
Stewart Specialty Insurance Services is the proud new insurance and risk management associate for the Home Builders Association of Greater Kansas City.
GOLD SPONSORS
Bank of Blue Valley Bovard Insurance Group Capitol Federal Fasone & Partners Ferguson Enterprises First Federal Bank Kansas Gas Service K&E Flatwork Kenny’s Tile Laclede Gas
McCray Lumber Northcraft Flooring & Granite Owen Lumber Phelps Engineering ProBuild Rew Materials Stewart Title Sun Lumber United Heating, Cooling & Plumbing
Contact us today and learn more about how you can get increased coverage at lowered premium levels with our Builder Protection Plus™ program. (866) 845-4676 specialtyinsurance@stewart.com stewartspecialtyinsurance.com
SILVER SPONSORS
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BRONZE SPONSORS
Building Solutions Commerce Bank Complete Home Concepts CrossFirst Bank
First American Title Hermes Landscaping Kansas City Title Locks & Pulls
Pella Products of Kansas City ProSource © 2015 Stewart.
11
www.kchba.org | Volume 22, No. 2 | February 2016
New Members
Lee’s Summit Office: 816-329-2109 Overland Park Office: 913-319-7970 KC Bank Office: 913-234-7703
Kristin Malfer & Associates Kristin Malfer 5000 W. 135th Street Leawood, KS 66224 (913) 239-2038 www.kristinmalfer.com
LP Building Products Jon Vance Joel Miller 9901 Perry Drive Overland Park, KS 66212 (913) 492-5527 www.lpcorp.com Continued on page 14
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Last month’s Consumer Electronics Show (CES) in Las Vegas put on an impressive parade of today’s newest technology, and a glimpse of tomorrow’s can’t-live-without gadgets. And once again, smart-home technology was on full display. If CES taught its attendees anything, it’s that there are very few things left in the home that can’t be automated or controlled by a smartphone. The technology is certainly remarkable, but it remains to be seen when it will really take hold with the general public.
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Many consumers are still wary of 12
smart-home technology, largely due to concerns regarding price, compatibility and above all, security. Depending on one’s definition of “smart homes,” the techy dwellings have existed for years. But these homes— with their automated lights, heat, A/C, water, electronics, appliances, and security systems—have predominantly been custom builds that appeal only to the most affluent buyers. These days, the technology is becoming slightly more accessible and seemingly essential to Continued on page 14
February 2016 | Volume 22, No. 2 | www.kchba.org
Member Anniversaries 1948 McCray Lumber and Millwork 1974 Graham Construction Company 1978 Barney Ashner Homes, Inc. 1983 Jim Haas Builders, LLC 1987 Top Master 1988 Bickford & Company, Inc. Dixon Construction Company, Inc. 1990 United Heating, Cooling & Plumbing Inc. 1997 Secured Title of Kansas City 2000 J Davis Drywall LLC 2001 Royal Metal Industries, Inc. 2002 Gahagan & Eddy Building Company LLC 2006 Kirkwood Realty Co., LLC Kreimendahl Painting Window World 2009 Rosehill Gardens, Inc 2010 Associated Air Products Integrated Electronics, Inc. Legacy Custom Homes LLC 2012 Alenco, Inc. Kansas Gas Service 2013 Colt Industries, Inc. Thomson Homes LLC 2014 Aspen Contracting, Inc. Dickinson Financial Corp AKA Academy Bank N.A. & Armed Forces Bank JFE Construction
BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY February 2016 • Volume 22 • Issue 2
Kelly Dunn Const. Inc. Syler Construction, Inc. 2015 Befort Construction, LLC Home Spot Realty Premier Siding & Roofing Home Improvement Reed Fuller Construction, Inc Still Builders, Inc. StrucSure Home Warranty
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Copyright 2016
Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800 Executive Vice President Sara Corless Editor Marcia Jurgens Contributing Writer Katie Walkley Graphics Karla Peterie, Creative Services
2016 Executive Committee Home Builders Association of Greater Kansas City
President Brenner Holland Vice President Harold Phelps Secretary/Treasurer Gary Kerns Immediate Past President Mark Mather Associate Representative Kevin Kirtley Past Presidents Representative Bob Frost
New Members Continued from page 12 Rew Materials, Inc. Don Harris Bill Overbeck Steve Heisdorffer P.O. Box 3360 Kansas City, KS 66103 (913) 236-4909 www.rewmaterials.com
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
Online Resources for HBA Members! Register for HBA Events with Safe & secure online registration. Personalized calendar of events. Get notification of your events
Update Your Membership
Call today 816-942-8800, or email gina@ kchba.org or scorless@kchba.org
Wynne Homes, Inc. Bill Kumpfer Billy Kumpfer PO Box 25645 Overland Park, KS 66225 (913) 638-9287 www.wynnehomeskc.com
Perfect Balance Trying to stand out from the competition doesn’t have to drive you nuts. Deckorators helps set you apart with decking from the same source you’ve relied on for railings, balusters, post caps and more. Plus, the Deckorators composite decking lineup is the only one backed by a 25-year Removal & Replacement warranty.
CORRECTION The meeting with Ray Merrick, Kansas Speaker of the House, reported in the January issue of the Building Business News was incorrect in the location of the meeting. It was held at the Artisan Tour entry of Rodrock Homes’ beautiful “Telluride” in Overland Park. We appreciate Rodrock Homes hospitality in opening the home for the meeting.
Visit deckorators.com for more information.
mccraylumber.com
13
www.kchba.org | Volume 22, No. 2 | February 2016
Anticipation Building for 2016 Home Show presenting Continued from page 1 sponsor Darol Rodrock Homes, will introduce Chip and Joanna. Darol will share how his inspiring life story is expressed through the vision of the Darol Rodrock Foundation: “To raise awareness about children in foster care and encourage people to take part in changing children’s lives that will shape their future forever.”
Three Things Scaring Consumers Away from Smart-home Technology
Bag Sponsor Rodrock Realty Ticket Sponsor Alenco Lanyard Sponsor & Fireplace
Continued from page 12 the middleclass consumer. But the prices for such items are still out of reach for the large majority of home owners.
Henges Insulation
When it comes to integration, especially for those who invest in one smarthome gadget at a time, the device’s ability to communicate with all of the other technology is key to smart living. Some devices will work with multiple platforms, but many others won’t. Buyers must either commit to one hometech ecosystem, or use different controls for different devices (uncharacteristic of a smart home).
The KCHBA held Kansas City’s first home show in 1948 and the annual event has become the go-to showcase for home improvement, technology, and decorating ideas as well as a fun-filled day with activities for all ages. The 2016 show is made possible by the following sponsors:
Perhaps the biggest consumer concern is the unwanted communication. Smarthome technology most often relies on Wi-Fi connectivity, and having so many things—especially door locks, garage
Presenting Sponsor Darol Rodrock Homes/Rodrock Development Stage Sponsor SPACES Magazine
Chip and Joanna Gaines
NATURAL GAS IS THE BLUEPRINT FOR SUCCESS. The most successful builders know that natural gas homes are instantly more attractive to buyers. When you build homes equipped with natural gas and weatherized with energy-efficient windows and insulation, you can reduce your customers’ utility bills year-round and help boost your sales numbers today. For more on how to use natural gas to turn prospects into buyers, contact Lyn Leet at lyn.leet@kansasgasservice.com or (913) 344-8808.
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door openers and security cameras—all connected to a wireless source raises concerns about security. Along those same lines, privacy comes into question when using products that can monitor the owner’s in-home behavior and possibly share that information with a parent company like Google. Any potential invasion of privacy could be enough to dissuade many buyers. The smart home is a reality for many current home owners, but to most people, it still seems more like science fiction. That may soon change, but only with further advancements in security and more viable price points to reach the middle class. NAHBNow, 1/14/16
February 2016 | Volume 22, No. 2 | www.kchba.org
Single Family Housing Finishes 2015 with 10% Gain Over 2014 A busy December added 432 single family permits in the eight county metro area according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. The year ended with 4,700 single family permits compared to 4,271 in 2014. Including multi-family units, the total for 2015 was 8,695 compared to 8,181 in 2014 for an overall 7 percent increase. Kansas City tracks closely the national rate of increase in building activity. “The gradual increase in housing production for 2015 mirrors our forecast and sets the stage for continued growth in 2016,” said NAHB Chief Economist David Crowe. “Strong job growth, rising consumer confidence and pent-up demand will keep housing on an upward trend.” Kansas City issued the most single family permits during 2015 with 949 in Jackson, Clay and Platte counties. This is a 13% increase in building permit activity in Kansas City. Olathe at 516 single family units, Overland Park with 381, Lee’s Summit with 321 and Lenexa’s total of 247 rounded out the top five cities. Two cities that were not in the top ten busiest list in 2014 joined the 2015 list – Raymore with 141 permits and Grain Valley with 136. The Kansas counties of Johnson, Wyandotte, Leavenworth and Miami accounted for 2,076 (44%) of the total while the Missouri counties of Clay, Platte, Jackson, and Cass issued 2,624 (56%) of the total single family permits. In multi-family activity, Missouri counties permitted 2,311 new units and Kansas had 1,684 new apartment units during 2015.
December 2015
Residential Building Permit Statistics
Residential Building Permit Statistics CASS COUNTY Archie Belton Cass County Cleveland Drexel 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 Edgerton 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 Shawnee Spring Hill Westwood
Single Family Units^
M-F Units Sale%
M-F Units Rent
Total Units
S-F Units YTD
M-F Sale YTD
0 0 0 0 0 0 0 0 0 0 6 17 1 24
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 6 17 1 24
2 13 29 1 0 0 10 4 32 26 46 141 10 314
9 0 4 63 4 0 0 0 0 6 86
0 0 0 0 0 0 0 0 0 0 0
0 0 0 48 0 0 0 0 0 0 48
9 0 4 111 4 0 0 0 0 6 134
12 0 35 0 1 4 7 9 2 15 1 0 0 86
0 0 0 0 0 12 0 0 0 0 0 0 0 12
0 0 0 0 0 0 0 330 0 0 0 0 0 330
0 23 0 0 22 4 3 0 52
0 0 0 0 0 0 0 0 0
1 0 0 1 4 7 28 0 0 49 21 0 10 6 0 127
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
DECEMBER 2015 M-F Rent YTD
Total Units YTD
0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 6 0 6
2 13 29 1 0 0 10 4 32 26 46 147 10 320
48 0 29 606 67 0 22 5 0 77 854
0 0 0 0 0 0 0 0 0 0 0
0 0 0 868 0 0 0 0 0 0 868
48 0 29 1474 67 0 22 5 0 77 1722
12 0 35 0 1 16 7 339 2 15 1 0 0 428
183 0 136 5 36 86 70 97 25 289 33 0 0 960
0 0 0 0 0 12 0 0 0 0 0 0 0 12
0 0 0 0 0 0 0 1217 0 203 0 0 0 1420
183 0 136 5 36 98 70 1314 25 492 33 0 0 2392
0 0 0 0 0 0 0 0 0
0 23 0 0 22 4 3 0 52
0 246 67 2 134 25 22 0 496
0 0 0 0 0 0 0 0 0
0 5 0 0 0 0 0 0 5
0 251 67 2 134 25 22 0 501
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
1 0 0 1 4 7 28 0 0 49 21 0 10 6 0 127
12 0 3 67 37 62 247 9 9 516 381 24 181 62 0 1610
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 72 0 0 316 0 0 159 1105 0 0 0 0 1652
12 0 3 139 37 62 563 9 9 675 1486 24 181 62 0 3262
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Single Family Units^ LEAVENWORTH COUNTY Basehor 8 Lansing 6 Leav. County 0 Leavenworth 0 Tonganoxie 6 20 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill
Totals
M-F Units Sale%
M-F Units Rent
Total Units
S-F Units YTD
M-F Sale YTD
M-F Rent YTD
Total Units YTD
0 0 0 0 0 0
0 0 0 0 0 0
8 6 0 0 6 20
89 19 79 10 21 218
0 0 0 0 0 0
0 0 0 0 0 0
89 19 79 10 21 218
3 0 18 21
0 0 0 0
0 0 0 0
3 0 18 21
23 1 152 176
0 0 0 0
0 0 0 0
23 1 152 176
0 11 0 3 2 16
0 0 0 0 0 0
0 0 0 0 0 0
0 11 0 3 2 16
7 41 1 7 16 72
0 0 0 0 0 0
32 0 0 0 0 32
39 41 1 7 16 104
432
12
378
822
4700
12
3983
8695
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
2008
221 262 353 441 231 260 311 293 264 314 167 115
Annual Total
3,232
2009
2010
2,155
2,471 2,301 3,299
96 129 131 184 189 204 196 207 219 226 192 182
137 145 252 228 213 239 180 243 173 279 173 209
2011
90 121 180 210 230 262 204 205 202 205 185 207
2012
188 182 270 277 294 268 288 260 379 331 283 279
2013
2014
2015
4,090
4,271
4,700
273 224 335 444 337 333 409 354 384 369 340 288
287 216 362 439 385 364 375 352 383 468 312 328
240 260 393 437 395 438 399 425 462 459 360 432
All numbers shown in the box above are ACTUAL numbers.
Comparison of Permits By Units Issued Year to Date* 2008-2015 2008 2009 2010 2011 2012 2013 2014 2015
S-F Units 3232 2155 2471 2301 3299 4090 4271 4700
M-F Units
1830 1497 253 600 1775 2879 3910 3995
Total Units
5062 3652 2724 2901 5074 6969 8181 8695
^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units and are divided by sale/rent. # 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 2016 Home Builders Assoc of Greater Kansas City. All rights reserved. Rev. 1.18.16
www.kchba.org | Volume 22, No. 2 | February 2016
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