September 2021
600 E. 103rd Street | Kansas City, MO 64131
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On the Cover: Cover story Colorful Bandages the Focus During the Fall Parade
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The Fall Parade of Homes returns to Kansas City Sept. 18 through Oct. 3. KCHBA is asking everyone who attends the Parade of Homes awards ceremony to bring at least one box of children’s bandages to the ceremony for children currently undergoing cancer treatment in honor of Noah Wilson. Read this article to learn more about Noah.
The Impact of our Associate Members on the Industry
Features
The Impact of our Associate Members on the Industry
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The importance of associate members within the new home construction industry is undeniable when you consider it takes 75 different trades and over 200 people to bring a home to market. And working with fellow KCHBA members has become increasingly important as timelines become tricker and supply and labor issues continue.
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he importance of associate members within the new home construction industry is undeniable when you consider it takes 75 different trades and over 200 people to bring a home to market. Comprising more than half of KCHBA’s membership, Associates are industry suppliers, service providers and product manufacturers. Associate members help home builders run successful businesses and make meaningful connections with customers. Most importantly, they help build the homes that improve the lives of families and make a lasting impact in communities all across the Kansas City region. “There would be no houses without Associates,” said Gary Kerns, owner of Gary Kerns Homebuilders. “It’s as simple as that.” But the value associate members bring to the table goes beyond the goods and services they provide. “When I need to get a Parade house ready – and it’s a challenge these days – my suppliers pull through,” said Patrick Willis, owner of Willis Custom Homes. “They’ll do whatever they can to make it a priority. We would not make our Artisan Home Tour if it wasn’t for companies like Mike Bryant,” said Willis. Working with fellow KCHBA members has become increasingly important as timelines become tricker and supply and labor issues continue.
“We’re all on the same page because we hear and see the same things,” said Kerns. “Do Business with a Member” is an initiative aimed to foster cross-functional relationships among builder and associate members. More members working together means more opportunities are created for the home-building industry.
Addressing Today’s Biggest Business Challenges
The best three- to five-year business plan is actually a three-month plan where you look for patterns and issues and adjust over the course of those three to five years, according to Robert August, president members also provide an enormous of North Star Synergies, which specializes in business Associate amount of support in non-dues revenue by being a KCHBA Elite Partner and sponsoring events. It’s development strategy for companies in the home-building industry. through this support that the KCHBA can focus
For Mark Mather, president of BMW Communities, 2015 KCHBA president and an HBA-PAC trustee, when it comes to forging new business relationships “you have to be a member of the HBA.”
more resources on advocating on behalf of the industry at the local level.
Since 1981, September has been designated as the National Association of Home Builder’s Associate Member Appreciation Month — an annual celebration of Associate member contributions to the home building industry and the KCHBA. Designating September as Associate Appreciation Month is just one way of providing the much-deserved visibility and recognition to our invaluable Associate members. Continued on page 14.
In Every Issue New Members
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Anniversaries 18 Residential Permit Statistics
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Something for Everyone at Construction 101
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n Aug. 18, KCHBA hosted another sold out Onsite Home Construction 101 with 35 attendees. The day began in Patriot Homes’ Jefferson model, located in the northland at the Cadence community developed by Hunt Midwest. Thank you to Brian Tebbenkamp of Patriot Homes and Brenner Holland of Hunt Midwest for providing their homebuilding and developing insight for this event.
It takes 75 different trades and over 200 people to bring a home to market. A wide range of KCHBA associate members were taken through the four stages of homebuilding – what is takes to begin permitting, moving on to footings, framing, drywall and ending with the process of the final home inspection. Thank you to everyone who attended. KCHBA hosts this event at least once a year. We hope to see you at the next one!
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Braklow, Woods Inducted into Past Presidents Club
McCray Lumber and Millwork Wins National Award The ProDealer Lumberyard of the Year is presented by the National Lumber & Building Material Dealers Association and Hardware + Building Supply Dealer. This award recognizes innovation, growth and performance in accordance with the values of the lumber and building material industry. McCray Lumber and Millwork – your hometown lumber dealer.
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ach year those who have served as president of the Home Builders Association gather for dinner to induct the most recent past president into their circle. Due to Covid-19, the past presidents were unable to convene in 2020 to initiate Shawn Woods of Ashlar Homes, into the group. So at this year’s past presidents dinner, held at Stock Hill last month, Woods as well as 2021 Immediate Past President Jerry Braklow, Braklow Custom Homes, were indoctrinated. Both were presented with Past President medals and officially inducted into this elite society.
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First Ever Wine & Whiskey Pull a Success!
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CHBA’s Professional Women in Building Council held its (sold out) inaugural Wine & Whiskey Pull, sponsored by and located at SVB Wood Floors on Aug. 26. Attendees enjoyed live music by DJ and EvanJohn, food by Brancato’s Catering and bartending by Top Shelf. With guests able to purchase multiple cork and barrel tickets, over 350 bottles of wine and whiskey were pulled. Through ticket sales, donations and a silent auction, more than $10,000 was raised. These funds will benefit future PWB education and event programming, including a scholarship program. Thank you to all the volunteers, sponsors and attendees who made this event a success! More photos on page 7
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The Impact of our Associate Members on the Industry
T
he importance of associate members within the new home construction industry is undeniable when you consider it takes 75 different trades and over 200 people to bring a home to market. Comprising more than half of KCHBA’s membership, associates are industry suppliers, service providers and product manufacturers. Associate members help home builders run successful businesses and make meaningful connections with customers. Most importantly, they help build the homes that improve the lives of families and make a lasting impact in communities all across the Kansas City region.
“We’re all on the same page because we hear and see the same things,” said Kerns.
“There would be no houses without associates,” said Gary Kerns, owner of Gary Kerns Homebuilders. “It’s as simple as that.”
Associate members also provide an enormous amount of support in non-dues revenue by being a KCHBA Elite Partner and sponsoring events. It’s through this support that the KCHBA can focus more resources on advocating on behalf of the industry at the local level.
But the value associate members bring to the table goes beyond the goods and services they provide. “When I need to get a Parade house ready – and it’s a challenge these days – my suppliers pull through,” said Patrick Willis, owner of Willis Custom Homes. “They’ll do whatever they can to make it a priority. We would not make our Artisan Home Tour if it wasn’t for companies like Mike Bryant,” said Willis.
“Do Business with a Member” is an initiative aimed to foster cross-functional relationships among builder and associate members. More members working together means more opportunities are created for the home-building industry. For Mark Mather, president of BMW Communities, 2015 KCHBA president and an HBA-PAC trustee, when it comes to forging new business relationships “you have to be a member of the HBA.”
Since 1981, September has been designated as the National Association of Home Builder’s Associate Member Appreciation Month — an annual celebration of associate member contributions to the home building industry and the KCHBA.
Designating September as Associate Appreciation Month is just one way of providing the Working with fellow KCHBA members has become much-deserved visibility and recognition to our increasingly important as timelines become trickier invaluable associate members. and supply and labor issues continue. 8 Continued on page 14.
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Colorful Bandages the Focus During the Fall Parade
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he Fall Parade of Homes returns to Kansas City Sept. 18 through Oct. 3. Sponsored by Mike Bryant Heating & Cooling, the Fall Parade will feature 231 homes by 88 of the area’s finest builders and includes 58 maintenance-provided entries in 32 maintenance-provided communities. Consumers will have the opportunity to view townhomes, duplexes, villas and single-family homes with a variety of floor plans featuring the latest design trends. Once again, builders have the opportunity to enter their Parade homes in the Pick of the Parade and/or the Distinctive Plan & Design contests. KCHBA will host teams comprised of industry professionals from across the Midwest who will canvass the Kansas City region Sept. 16-17 to evaluate the entries. The winners will be announced at the Fall Parade of Homes Awards celebration. Sponsored by Nebraska Furniture Mart, the awards celebration is scheduled for Wed., Sept. 22 at Children’s Mercy Park, where Kansas City’s major league soccer team, Sporting KC, plays its home games. Cocktails and networking will begin at 5:30 p.m. and the awards program will begin at 5:45 p.m. Noah’s Bandage Project A portion of the proceeds from the awards ceremony will benefit Noah’s Bandage Project, which supports pediatric cancer research. At six years old, in April of 2014, Noah Wilson was diagnosed with cancer. He never let his diagnosis change his passion to help others. He had a huge heart and was constantly looking for ways to help people.
His love for others did not change even when facing a devastating diagnosis. When his treatment began, he found himself getting pokes almost daily. The hospital where he was being treated did not have “cool” bandages, leaving the children there having to settle for the boring brown ones.
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Noah saw this as an opportunity to help his fellow patients and decided that he wanted to start collecting fun bandages for his new friends. Noah knew that a bandage is so much more than a cover for a wound. To Noah, a bandage is: • A badge of courage – shots and procedures hurt and can very easily bring anxiety to those who have to experience them. A bandage becomes their badge of honor showing others that they overcame something scary. It helps them show off how brave they are! • An identity – on a cancer floor, kids wear similar hospital gowns and most patients have lost their hair. Bandages can be a way to express themselves and share with others the things they think are cool. It’s a simple way for them to stand out and show off their interests. • Fun – Kids battling sickness of any kind need all the fun we can give them! Noah also learned that when it comes to funding cancer research for kids, there is very little support. In fact, only 4 percent of the U.S. national cancer research budget goes to children. Noah passed away in June of 2015, but not before starting his Bandage Project and making a huge difference in the world. For more information about Noah’s Bandage Project, visit noahsbandageproject.com. KCHBA is asking everyone who attends the awards ceremony to bring at least one box of children’s bandages to the ceremony for children currently undergoing cancer treatment in honor of Noah. If you cannot attend the awards ceremony, please drop your bandages off at the KCHBA office before Sept. 22. Noah’s dad, Scott Wilson, will be in attendance at the awards ceremony.
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Addressing Today’s Biggest Business Challenges
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he best three- to five-year business plan is actually a threemonth plan where you look for patterns and issues and adjust over the course of those three to five years, according to Robert August, president of North Star Synergies. August, along with Jeff Wilson, president of LoomView Enterprises, spoke to KCHBA members during a “One Hour MBA” workshop last month. August and Wilson addressed today’s biggest business mistakes and 10 simple steps that can instantly solve those challenges.
discount, cautioned August and Wilson. Instead, find ways to upsell or cross-sell. Tracking your gross profit margin rate is another important number to watch. “List your top 10 selling products and analyze the profit margins,” said Wilson. If your top-selling product doesn’t make a solid profit, you may need to adjust your pricing or package products together to increase margin. It’s important to stay in front of prospects and to form strategic alliances, according to August and Wilson.
There are some key numbers to pay attention to in your business, according to Wilson, such as the number of existing clients and your retention rate of those existing and past customers.
“You earn the right to ask for a referral in the first meeting,” said August. “You also need to find a project where you work with two other companies in which you could never do the project otherwise. Multiple alliances and referral strategies — that’s how you get ahead.”
Reconnect with past customers because past customers are the lifeblood of the business,” said August. “One third of people are past customers, 1/3 of people are in transition and 1/3 of people you will never reach. Past customers are current customers and the path to referrals.” Numbers such as conversion rate, average number of transactions and average dollar amount of transactions are critical to continually track, according to Wilson.
Evaluating Employees
A goal should be to increase the number of transactions. But don’t
If you missed the webinar, visit the news section at kchba.org for a link to view the recording.
Most businesses don’t clearly define every role in the company, explained August and Wilson. “Eighty percent of employees who fail to perform in the first 18 months did not align with the company’s culture, goals, etc.,” said Wilson.
Wilson suggested ranking every employee from A to D. An “A” employee is always great; a “B” employee is good but has some things that could be improved; a “C” employee is one you can barely stand; and a “D” employee is someone who sucks the life out of all around them. Wilson suggested creating an action plan for each one except for your “D” employee, which he suggests firing promptly. Then, invest in your “A” people. “A 30 percent increase in salary of an “A” employee will result in a 900 percent increase in performance from them,” said Wilson. “You will get so much more from them.”
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Continued from page 8. KCHBA would like to thank Misty Hanson, Stewart Title, for serving as the Associate Council Chair for the past several years. Misty also serves on NAHB’s Associates Committee, which oversees the development of programs, resources and services that make it easier to do business with a builder, developer or remodeler member. And as the KCHBA’s Associate National Delegate, Misty is a voice for the local home building industry as the broader association discusses industry issues and the policies. KCHBA’s Associates Council hosts the annual golf tournament and clay shoot in an effort to promote networking among builders and associates. The Associates Council is also in charge of Onsite Construction 101, which offers members the opportunity to develop a deeper understanding of the process of new construction and includes topics such as permitting, framing, electrical, plumbing and inspections. KCHBA membership invites you to take advantage of the various events our Associates Council hosts as a way to connect with more members. And we want to recognize our Associates and thank them for their professionalism, political engagement, volunteer activities and service to the industry. Their vitally important teamwork has helped to construct 231 homes on the KCHBA’s Fall Parade of Homes.
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Sept/Oct Calendar
HBA Staff Will Ruder Executive Vice President will@kchba.org 816-733-2216
Sept. 18-Oct. 3: Fall Parade of Homes Sept. 22: Fall Parade Awards Ceremony
Dawn Allen Director of Member Services & Partnerships dawn@kchba.org 816-733-2241
Sept. 24: YP & PWB Parade Party Bus Tour
Kelcee Allen Director of Parade of Homes/Digital Content Strategist kelcee@kchba.org 816-733-2246
Oct. 1-31: Careers in Construction Month
Kari English Senior Director of Communications & Strategy kari@kchba.org 816-733-2213
Oct. 15: Associate Appreciation Lunch + Clay Shoot
Marcia Jurgens Vice President of Administration marcia@kchba.org 816-733-2215
Oct. 27: Leadership + Management = Accountability, hosted by PWB
Courtney Reyes Director of Government Affairs & Workforce Development courtney@kchba.org 816-733-2214
Check out the weekly e-newsletter, This Week at the HBA, for the most up to date event information.
Jordynn Webster Manager of Government Affairs & Workforce Development jordynn@kchba.org 816-733-2218
Paige Waltman Manager of Communications & Education paige@kchba.org 816-733-2217
The Official Publication of the Home Builders Association of Greater Kansas City
September 2021 • Volume 27 • Issue 8 Copyright 2021
Published by the Home Builders Association of Greater Kansas City 600 E. 103 Street, Kansas City, MO 64131 • (816) 942-8800
Editor Kari English Contributing Writers Marcia Jurgens, Paige Waltman Graphics Karla Peterie, Creative Services 2021 Executive Committee President Kevin Kirtley Vice President Tommy Bickimer Executive Vice President Will Ruder Secretary/Treasurer Brian Tebbenkamp Immediate Past President Jerry Braklow Associate Representative Richard Holtcamp Past Presidents Representative Bob Frost
To subscribe to Building Business News call (816) 733-2217 To advertise in Building Business News call (816) 733-2213 For change of address requests please email Kari@kchba.org or call (816) 942-8800 For more information, visit kchba.org
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Anniversaries 1956 The Sherwin Williams Company 1963 The Alpert Companies 1978 Don Julian Builders, Inc. 1979 Pella Products of Kansas City 1983 Ambassador Construction Company 1985 Dobberstine Homes 1987 Reilly Homes, LLC 1988 Factory Direct Appliance a Ferguson Ent. 1989 Kansas City Building Supply 1991 Bank of Blue Valley 1994 Hoffman Construction, Inc. 1997 NSPJ Architects, P.A. 2003 The National Home Building Co. 2005 Joe Kilowatt, Inc. 2010 Mike VanKeirsbilck Construction 2011 Property Law
New Members Prairie Homes Inc Robert Ewy 12917 Richards Overland Park, KS 66213 (913) 530-6161 www.prairiehomeskc.com
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2012 Braklow Custom Homes, Inc. 2013 First Choice Custom Homes LLC Premier Building Supply of Kansas City 2014 Blue Springs Beam Service Superior Masonry Inc. 2016 Heartland Homes, LLC 2017 Cover Electric Anything on Anything Century Plumbing Co. Matt Adam Development Co. Lashbrook Co. Schluter Systems L.P. Keller Williams - Hiatt Home Group Drees Built Homes 2018 Dimensional Stoneworks, 2019 Scott Homes, LLC Gentry Roofing, LLC Drippe Homes Inc. 2020 Greenamyre Rentals Fish Creek Homes
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Permit Activity Dips Slightly in July; Activity Up Overall from 2020
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esidential permits issued in July decreased slightly both from June 2021 (558 permits issued) and from July of last year when 493 permits were issued. However, the 480 single-family units permitted during the month brings the year-to-date total to 3,718 which is 20 percent higher than the 2,990 permits issued during 2020’s first seven months, according to the Home Builders Association of Greater Kansas City’s (KCHBA) monthly Residential Building Permit Statistics report.
Let’s put more buyers into your homes As a builder, you know the value of quality, personalized service, and attention to detail. We’re here to support you and your clients as they reach their homebuying goals. • Builder Best® Extended Rate Lock program, with a required, non-refundable extended rate lock fee. • Builder Spec Lock program lets you lock in a rate range for 90 or 120 days (with a required, non-refundable Builder Spec Lock fee), and transfer the rate lock to the client.1
“The slight decrease in Kansas City area permit activity last month is also being seen across the country. Supply chain challenges leading to rising prices and limited availability have had a tempering effect on the volume and velocity of construction,” said Will Ruder, executive vice president of the KCHBA. “The fact that permitting activity is up year-to-date is a testament to our members’ ability to adapt and innovate to meet the consistent consumer demand in this market.”
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Comparing single-family permit activity on a county-wide basis, year-to-date the Missouri counties have increased by an overall total of 18 permits in 2021 while the Kansas counties have had an increase of 31 permits compared to the same period in 2020. Similar to last year, the five most active cities for single-family permits in 2021 so far are Kansas City, Mo., (584); Olathe (462); Lee’s Summit (436); Overland Park (414); and Blue Springs (163). The only change is Belton, which was replaced by Blue Springs as the fifth most active city. Additionally, the total number of single-family permits issued year-to-date Today, more than 30 by the five busiest years later we are still the cities has increased preferred lender to many from 1,529 in 2020 of the area’s top awarded to 2,059 in 2021 – builders. indicating new home construction continContact us, to learn why ues to be a stronghold the best choose the best! for the economy. 913-234-2334
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Residential Building Permit Statistics
Residential Building Permit Statistics JULY 2021 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 MultiS-F M-F Total Family Family Total Units Units Units Units^ Units% Units YTD YTD YTD 0 30 0 0 0 1 0 0 1 1 5 0 38
0 0 0 0 0 0 0 0 0 0 0 0 0
0 30 0 0 0 1 0 0 1 1 5 0 38
0 50 0 0 0 7 23 24 73 20 81 0 278
0 49 0 0 0 0 0 0 0 0 0 0 49
0 99 0 0 0 7 23 24 73 20 81 0 327
6 0 0 56 7 0 2 0 0 6 77
0 0 0 0 0 0 0 0 0 0 0
6 0 0 56 7 0 2 0 0 6 77
11 10 3 354 39 0 41 0 0 37 495
0 0 0 0 0 0 0 0 0 0 0
11 10 3 354 39 0 41 0 0 37 495
18 0 1 0 0 10 6 19 0 72 1 0 0 127
0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 0 1 0 0 10 6 19 0 72 1 0 0 127
163 0 76 1 0 58 53 101 0 412 22 0 0 886
0 0 0 0 0 0 0 0 0 0 0 0 0 0
163 0 76 1 0 58 53 101 0 412 22 0 0 886
11 2 0 11 2 0 0 26
0 0 0 0 0 0 0 0
11 2 0 11 2 0 0 26
129 30 0 85 6 0 0 250
0 0 0 0 0 0 0 0
129 30 0 85 6 0 0 250
1 1 0 6 1 4 12 0 0 65 59 6 0 6 11 0 172
0 0 0 0 0 0 0 0 0 12 0 0 0 0 0 0 12
1 1 0 6 1 4 12 0 0 77 59 6 0 6 11 0 184
23 1 0 39 29 34 132 0 0 462 414 59 0 122 110 0 1425
0 0 0 32 0 0 0 0 0 122 0 0 0 0 0 0 154
23 1 0 71 29 34 132 0 0 584 414 59 0 122 110 0 1579
July 2021
Single MultiS-F M-F Total Family Family Total Units Units Units Units^ Units% Units YTD YTD YTD LEAVENWORTH COUNTY Basehor 2 0 77 0 2 77 Lansing 0 0 0 0 0 0 Leav. County 9 0 79 10 9 89 Leavenworth 0 0 0 0 0 0 Tonganoxie 0 0 47 0 0 47 11 0 11 203 10 213 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill Totals
0 0 14 14
0 0 0 0
0 0 14 14
0 0 85 85
0 0 0 0
0 0 85 85
0 0 0 3 12 15
0 0 0 0 0 0
0 0 0 3 12 15
37 0 0 6 53 96
0 0 0 0 0 0
37 0 0 6 53 96
480
12
492
3718
213
3931
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
2014 287 216 362 439 385 364 375 352 383 468 312 328 4,271
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 457 463 477 463 571 549 562 564 504 598 567 569 512 485 480 514 514 353 583 485 502 354 468 276
2019 2020 234 355 234 475 357 438 411 434 391 374 387 421 471 493 429 444 396 557 500 510 410 404 434 461
2021 411 493 560 637 579 558 480
4,700
5,517
6,197
4,654
3718
5,673
5,366
Comparison of Permits By Units Issued Year to Date
2014 - 2021 2014 2015 2016 2017 2018 2019 2020 2021
S-F Units 2428 2562 3322 3650 3691 2485 2990 3718
M-F Units 2157 1706 2409 1191 1305 1211 1797 213
Total Units 4585 4268 5731 4841 4996 3696 4787 3931
^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 2021 Home Builders Assoc of Greater Kansas City. All rights reserved.
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E V E N T PA RT N E R S Clay Shoot
OCTOBER 15, 2021
Held in the fall, this event gives you, your clients, co-workers and prospects a great way to network and build relationships with both builder and associate members. You will see 150+ members at this event.
D L SO 23
2021 ADVERTISING & SPONSORSHIP OPPORTUNITIES • HOME BUILDERS ASSOCIATION OF GRE ATER KANSAS CIT Y CONTACT DAWN FOR QUESTIONS OR TO CRE ATE A CUSTOMIZED PARTNERSHIP PL AN Dawn Allen: 816.942.8800 • Dawn@kchba.org • www.kchba.org
FA L L 2 0 2 1
PARADE of HOMES AWARDS CELEBRATION
Wednesday, September 22 Children's Mercy Park | Wise Power Shield Club 1 Sporting Way | Kansas City, KS 66111
Registration and Reception | 5:30 - 6:45 p.m. Awards Presentation | 6:45 p.m. MC Alex Gold, sports talk host on 610 Sports Radio. Casual attire $85 per person | Includes food and two drink tickets. A portion of ticket sales will benefit Noah's Bandage Project, an organization focused on eliminating childhood cancer. Please bring a box of colorful, fun children's bandages in support of Noah's Bandage Project. RSVP by Wednesday, September 15 | Kelcee@kchba.org or call 816.942.8800
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