Building Business News November 2020

November 2020

Fall Parade of Homes Winners

600 E. 103rd Street | Kansas City, MO 64131

On the Cover: Cover story

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Award-Winning Homes Learn who won a Distinctive Plan & Design or a Pick of the Parade award during the Fall Parade of Homes.

Features Clay Shoot in Review

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KCHBA hosted two of its most popular events on Oct. 16 - the annual Clay Shoot Tournament and Associate Appreciation Lunch.

2021 IBS Transitions to Virtual Event

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Expect to see product launches, cutting-edge housing and design innovations online.

Home Building Continues Historic Climb

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The pace of single-family starts in September was the highest production rate since the summer of 2007.

In Every Issue New Members

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Anniversaries 21 Residential Permit Statistics

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Associate Appreciation Clay Shoot

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t was a beautiful day on Oct. 16 for two of KCHBA’s most popular annual events – the Clay Shoot tournament and Associate Appreciation Lunch. All KCHBA members were invited to join the Clay Shoot teams for a catered outdoor lunch after tournament play. Limited-edition hats were available to Associate members as a small token of appreciation.

Representatives from KCHBA’s Professional Women in Building Committee and the KCHBA Young Professionals raffled off prizes and handed out an assortment of festive refreshments.

Congratulations to the winning teams. Thank you to everyone who attended and to Powder Creek for hosting the event.

Additional thanks to the 2020 Clay Shoot sponsors: Bank of Blue Valley, Echo Systems, Ferguson, Shamrock Cabinet, ProSource, Bovard Insurance, Capitol Federal Bank, First Federal Bank of KC, Hermes Landscaping and Wilson Lighting.

2020 Clay Shoot Tournament Winners Flight A 1st Place: Phelps Engineering – Team B 2nd Place: Bank of Blue Valley 3rd Place: Security Bank of KC

Flight B 1st Place: Ferguson TIE – 2nd Place: North American Savings Bank, Factory Direct 3rd Place: Pfeifer Homes Flight C 1st Place: Willis Custom Homes/ProSource 2nd Place: Canaan Stoneworks 3rd Place: ProSource – Kansas City West

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Nov/Dec Calendar Nov. 18 Area Council – Virtual Event Nov. 19-20 OSHA 10 Class Nov. 26-27 Thanksgiving – KCHBA

Office Closed Dec. 7-8

CEU Credit Classes

Dec. 24-25, Happy Holidays! & 31 KCHBA Office Closed

KC MADE Award Grants in Action

NATURAL GAS BRINGS YOU SAVINGS FOR YOUR FUTURE.

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Homeowners save with natural gas.

Natural gas furnaces heat homes more efficiently than electric heat pumps: the average household can save $400 to $500 a year with a natural gas furnace.

his brand-new woodworking equipment was purchased this past year with KC MADE grant money awarded to three winners from Liberty High School. Under the guidance of their teacher, this accomplishment and success is now reinvested into the LHS Woodworking program.

Stay tuned for more information on the 2021 KC MADE competition!

A BETTER TOMORROW STARTS TODAY. www.kansasgasservice.com

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2021 Builders’ Show Transitions to Virtual Event

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erry Howard, NAHB CEO, explains the decision-making process on moving IBS 2021 to a virtual format in a recent episode of NAHB’s podcast Housing Developments. “[NAHB senior leadership] made a tough decision,” said Howard.

But “the market spoke… when we left Las Vegas [after IBS 2020] we had almost 450,000 square feet of exhibit space sold already.

And then Covid hit. Sales came to a screeching halt and they stayed that way for about two or three months. And then, not only did sales stay really slow, if at all, cancellations started to come in.” Howard acknowledged that reserved exhibitor space shrunk to just over 200,000 square feet. “The financial viability of the IBS was coming into question,” said Howard.

ing and design innovations. You will still be able to tour The New American Home and the New American Remodel. Tune in to learn from the top leaders in the industry, including expert demos.

Connect with exhibitors, speakers and other attendees all from the comfort of your home or office.

What does the future hold? Of course, no one really knows. But Howard is optimistic. “In 2021, we’re going to be able to take advantage of the fact that so many other trade shows have had to cancel and go to a virtual platform. We have seen what they’ve done. We know what they’ve done well and we will mimic it and improve upon it. And we know where they’ve stumbled. And we’ll make sure that we don’t make the same mistakes,” explained Howard. Howard noted that IBS 2022 is not on the back burner, saying “I’m as excited about the 2022 show as I’ve ever been about any show we’ve had.”

Registration for the virtual event is now open at buildersshow.com. If you have any questions, reach out to buildersshow@nahb.org.

For IBS 2021, expect to see product launches, cutting-edge hous-

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The Passing of Harry Francis Roth

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CHBA would like to offer its sympathies to the family of Harold (Harry) Francis Roth, who passed away on Oct. 6.

Roth was a longtime home builder in the Kansas City metropolitan area. He developed his construction skills and work-ethic as a young man on the farm near his hometown of Victoria, Kan. Following graduation from Fort Hays State University, Roth relocated to Kansas City. It was in Kansas City that he met his wife, Beverly, of 43 years and founded his construction business.

Memorial donations may be made in his honor to the Pancreatic Cancer Action Network.

Contact Karol Angotti or Michal Fasone 816.753.7272 karol@fasonepartners.com mj@fasonepartners.com

KBIG Gives Back to Members

K

BIG will be returning $350,000 to its members in October and November. This represents the second installment on the 2012 Fund year (the first installment was $475,000 paid in 2019). Including these premium refunds, KBIG has returned over $8.1 million dollars back to its members. KBIG will be dispersing $32,317 to 32 KCHBA member companies during this time.

Questions? Contact Deena@kbig.biz.

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ABOUT US

The mission of the KCHBA’s Young Professionals group is to provide career-minded individuals with opportunities to develop professionally, civically and socially through activities that support the future of the home-building industry. Any KCHBA member under the age of 45 is welcome to join.

WHY SHOULD YOU JOIN THE YPS?

Getting involved in a professional organization can be intimidating. The YP group is a welcoming place for new people to learn about what the KCHBA has to offer so that they can become more comfortable attending events, joining committees and getting the most out of their membership!

Networking: The KCHBA’s YP group is great because you Net will be surrounded by like-minded individuals who are also looking to grow their networks.

Philanthropy: KCHBA’s YP group is also focused on giving back to the community. The group coordinates services opportunities for members to work together and make an impact.

Leadership Opportunities: The members of the Young Leade Professionals Council are the next generation of leaders in our industry. For those who are interested in taking on a larger role with the KCHBA, there are opportunities available to help plan events, support advocacy initiatives and grow into leadership positions.

2020 YP LEADERSHIP

Chai Chairman: Brian Tebbenkamp, Patriot Homes Vice-Chairman: Stephen Spallo, James Hardie Siding

For more information contact Jordynn@kchba.org or call 816.942.8800 7

OSHA 10 Hour Construction Program Nov. 19: 8:00 a.m. – 4:30 p.m.

Nov. 20: 8:00 – 11:00 a.m.

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©2020 Ferguson Enterprises LLC 0720 2058070

T

he KCHBA Foundation Committee has decided to postpone its annual Topgolf outing until March 2021. The event is being rescheduled so that even more KCHBA members have an opportunity to participate. Last year’s event was so much fun, we don’t want anyone to miss out due to concerns and/or restrictions related to Covid-19. Look for updated information via email once a new date has been set.

Home Building Continues Historic Climb

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ingle-family starts experienced continued gains in September, according to data from the U.S. Department of Housing and Urban Development and the Census Bureau. Contrasting the different subsectors of housing, while single-family permits are showing continued strength, multifamily permits continue to weaken as a consequence of the 2020 virus crisis.

The multifamily sector, which includes apartment buildings and condos (96percent built-for-rent currently), decreased to a 307,000 annual pace. The weakness for multifamily development is consistent with our forecast, as multifamily permits for 5+ unit production are now down more than 8 percent on a year-to-date basis.

The pace of single-family starts in September was the highest production rate since the summer of 2007. Single-family building increased 8.5 percent to a 1.1 million seasonally adjusted annual rate. The September reading of starts was consistent with surging builder confidence, as single-family construction rises to meet strong buyer traffic, supported by low interest rates, changing geography of demand, and a growing number of sales that have not started construction. However, builders continue to face challenges in terms of elevated lumber prices and supply chain shortages of other building materials.

Total housing starts were up almost 2 percent in September on the decline for multifamily construction. Single-family permits continue to rise and are now up 9.9 percent on a year-to-date basis.

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As an indicator of the strength of the housing rebound, there are now 539,000 single-family homes under construction. This is 3 percent higher than a year ago, despite the declines for construction starts in the Spring. At its peak level of decline in April, single-family starts were down 34 percent compared to the pre-recession peak in February.

Continued on page 11

KCHBA Postpones Inaugural

I

n an effort to ensure everyone stays safe and healthy leading up to the holidays, the KCHBA Executive Committee has decided to postpone this year’s annual Inaugural event given thecurrent city and state Covid-19 guidelines and restrictions, it was determined that our traditional inaugural celebration would not be possible.

KCHBA will share updated information as soon as a new date is chosen. Â

Historic Climb Continued from page 10

There are currently 670,000 apartments under construction, off a post-Great Recession high mark set in August (684,000). This count will continue to decline in the months ahead on weakening rental demand, particularly in high density areas.

Material cost increases and shortages are having an impact on the construction pipeline. For August, the count of single-family homes that have an authorized permit but have not started construction totaled 104,000, a 22.4 percent increase compared to a year ago. Builders are reporting growing delays due to these supply-chain issues.

On a regional and year-to-date basis (January through September of 2020 compared to that same time frame a year ago), combined single-family and multifamily starts are 11 percent higher in the Midwest, 5.7 percent higher in the South, 4.5 percent higher in the West and 1.4 percent lower in the Northeast.

NAHB Eye on Housing, Oct. 20, 2020

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This information is for real estate and building professionals only and is not intended for consumer distribution.

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Home Builders Foundations Fund Check Presentations

Community Housing of Wyandotte County

Friends of Johnson County Developmental Support

Habitat for Humanity

Veterans Community Project

Make-A-Wish

Rebuilding Together Kansas City

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Vote for Carl Harris for Third Vice Chair at NAHB

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he leadership at the National Association of Home Builders (NAHB) plays a prominent role in advocating for the residential construction industry at the national level.

To serve on the leadership ladder at NAHB, candidates for the Chair and Vice Chair positions must be voted on by the Leadership Council. This council includes NAHB directors, life directors and senior life directors from across the country.

This year, Carl Harris, a member of the Wichita Area Builders Association (WABA), is running for 2021 Third Vice Chairman.

The KCHBA Board of Directors has approved the endorsement of Harris for third vice chair. Harris’ election will be held during the 2021 International Builders Show Virtual Experience (IBSx) in February.

Harris has been a builder of homes and commercial buildings in Newton, Kan., since the early 1980s. Harris received a Bachelor of Business Administration in 1983 from Wichita State University.

In 1985, Carl, with his father and sister, founded Carl Harris Co., Inc., a specialty subcontracting firm specializing in structural steel and precast concrete erection services.

Since then, Harris’ business has diversified and grown into several offshoots that cover residential building and commercial construction, with affiliations with firms in drywall installation, plumbing and property management services. Over the last 34+ years, Harris has helped transform the skylines and increase property values throughout southcentral Kansas.

Harris has also served as mayor of his hometown of Newton and served on the Planning Commission. Harris and his wife Lori enjoy working together in their business and serving their community.

Harris’ dedication to his home state, the people in his community and the betterment of home building standards locally and nationally position him well to serve you and the Federation. We look forward to seeing Carl Harris assume the role of Third Vice Chair and stand ready to assist him in his work on behalf of our industry.

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Share of Home Buyers Getting Outbid Almost Doubles

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recent study found 62 percent of buyers who were actively engaged in the process of finding a home in the third quarter 2020 have spent upwards of three months searching for a home without success.

more buyers are choosing to wait until next year or later to try again. In the third quarter of 2020, 20 percent of long-term active buyers said they would give up, compared to 15 percent a year earlier.

Although the top reason long-time searchers have not pulled the trigger continues to be the inability to find an affordable home (38 percent), that share is lower than a year ago (45 percent). In contrast, the share who blame it on getting outbid by higher offers from other buyers almost doubled in the last year, from 15 percent to 27 percent.

When asked what they’ll do next if still unable to find a home in the next few months, 26 percent of these veteran house hunters say they’ll buy a more expensive home than originally intended, three times the share with that strategy a year earlier (9 percent).

The share who will expand their search area is also higher, up from 35 percent to 43 percent, which is consistent with findings showing increased home building in lower-density markets. The one thing long-term active buyers are less likely to do than a year ago is continue looking for the ‘right’ home in the same preferred location, down from 52 percent to 47 percent.

The increase marks the third consecutive year-over-year gain in the share of buyers who are likely to quit searching for a home until the inventory situation improves.

NAHB Eye on Housing, Nov. 2, 2020

Difficulties finding a home to buy is having another consequence:

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New Members

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The right property. The right builder. The right materials.

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Inlanta Mortgage Carey Hiatt 100 E. 6th St Kearney, MO 64060 (816) 903-4663 www.careyhiatt.inlanta.com

Choosing the right lender matters too. Our experienced team, extensive construction and mortgage loan programs and streamlined processes have made us one of Kansas City’s top home lenders. We stand ready to help builders and consumers finance home construction, from application to closing.

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Anniversaries 1958 Renner Garage Door 1972 Riffe Construction Co. 1975 Lambie Custom Homes, Inc. 1983 Wallboard Specialties, Inc. 1995 Gianni Custom Homes, LLC Rodrock Homes, LLC 1998 Gale Homes II 2000 Brackmann Construction Curby’s Lawn & Garden 2001 Sun Lumber Company, LLC Mize CPAs, Inc.

2014 Interurban Restoration & Construction Sprint Lumber Inc 2015 Raynor Garage Door Co., Inc. of KC Patriot Homes Inc. Kansas City Remodel & Handyman Allen, LLC Higgins Stone Company 2016 Kohler Company Roberts Chevrolet Buick 2017 Grata Development Precise Forms, Inc 2018 Madi Mali Homes LLC Makita U.S.A., Inc.

2002 Affinity Homes Starr Homes LLC 2004 Erosion Control Inc. 2005 New Mark Homes, LLC. 2006 Owens Built Properties Inc. The Kansas City Star 2010 Curth Concrete Basement Construction 2012 Hunt Midwest Residential Wells Fargo Home Mortgage 2013 Lakeshore Homes LLC Clayton House, LLC

HBA Staff Will Ruder Executive Vice President will@kchba.org 816-733-2216 Dawn Allen Director of Member Services & Partnerships dawn@kchba.org 816-733-2241 Kelcee Allen Director of Parade of Homes/Digital Content Strategist kelcee@kchba.org 816-733-2246 Kari English Senior Director of Communications & Strategy kari@kchba.org 816-733-2213 Marcia Jurgens Vice President of Administration marcia@kchba.org 816-733-2215 Courtney Reyes Director of Government Affairs & Workforce Development courtney@kchba.org 816-733-2214 Paige Waltman Manager of Communications & Education paige@kchba.org 816-733-2217 Jordynn Webster Manager of Government Affairs & Workforce Development jordynn@kchba.org 816-733-2218

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2019 Classic Kitchens Design Studio Behr Paint Company Heartland Housing Partners, LLC Budget Blinds of Concordia/ Blue Springs PV Investments, LLC Midwest Premier Flooring Distinguished Boards and Beams

Single-Family Permits Rebounds in September

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fter a slight dip in August, the number of single-family housing permits issued in September in the Kansas City region climbed in September with a 20 percent increase over the previous month and a 17 percent increase year-to-date compared to the first nine months of 2019, according to statistics compiled by the Home Builders Association of Greater Kansas City (KCHBA).

“The upward trend in housing starts in Kansas City this year is similar to what’s being seen across the nation right now,” said KCHBA Executive Vice President Will Ruder. “As demonstrated during our recently concluded Fall Parade of Homes, the home buying public is increasingly seeking out new home construction to meet their housing needs, and our members are striving to meet that growing demand.”

Once again, Kansas City, Mo., issued the most single-family permits in September with 131, an increase over last month when 98 permits were issued in that city. Other top permitting cities in September include Olathe, Kan., with 57; Lee’s Summit, Mo., and Shawnee, Kan., both with 34; and Overland Park, Kan., with 31.

The Official Publication of the Home Builders Association of Greater Kansas City

November 2020 • Volume 26 • Issue 10 Copyright 2020

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 2020 Executive Committee President Jerry Braklow Vice President Kevin Kirtley Executive Vice President Will Ruder Secretary/Treasurer Tommy Bickimer Immediate Past President Shawn Woods 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) 733-2215 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 kchba.org

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Residential Building Permit Statistics

Residential BuildingSEPTEMBER Permit Statistics 2020 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 0 0 0 0 3 4 0 0 2 21 0 30

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

0 0 0 0 0 3 4 0 0 2 21 0 30

5 186 11 0 0 10 30 14 24 11 92 7 390

0 0 0 0 0 0 0 0 0 0 396 0 396

5 186 11 0 0 10 30 14 24 11 488 7 786

11 5 1 89 7 0 11 0 0 5 129

0 0 0 0 0 0 0 0 0 0 0

11 5 1 89 7 0 11 0 0 5 129

30 21 3 479 37 0 38 0 0 34 642

0 0 0 315 0 0 0 0 0 0 315

30 21 3 794 37 0 38 0 0 34 957

26 0 14 0 0 8 10 13 0 34 0 0 0 105

54 0 0 0 0 0 0 0 0 0 0 0 0 54

80 0 14 0 0 8 10 13 0 34 0 0 0 159

195 0 85 12 0 66 55 93 0 300 0 0 0 806

54 0 48 0 0 0 0 116 0 314 0 0 0 532

249 0 133 12 0 66 55 209 0 614 0 0 0 1338

29 0 0 8 5 0 0 42

0 0 0 0 0 0 0 0

29 0 0 8 5 0 0 42

200 43 7 88 18 0 0 356

0 0 0 0 0 0 0 0

200 43 7 88 18 0 0 356

10 0 0 3 2 3 20 0 0 57 31 3 0 34 11 0 174

0 0 0 0 0 0 0 0 0 272 0 0 0 0 0 0 272

10 0 0 3 2 3 20 0 0 329 31 3 0 34 11 0 446

46 0 0 62 24 37 164 0 0 469 264 50 0 99 84 1 1300

56 0 0 0 0 0 392 0 0 368 0 0 0 67 0 0 883

102 0 0 62 24 37 556 0 0 837 264 50 0 166 84 1 2183

September 2020

Single MultiS-F M-F Total Family Family Total Units Units Units Units^ Units% Units YTD YTD YTD LEAVENWORTH COUNTY Basehor 28 0 81 0 28 81 Lansing 0 0 11 0 0 11 Leav. County 21 0 67 0 21 67 Leavenworth 0 0 30 0 0 30 Tonganoxie 3 2 29 2 5 31 52 2 54 218 2 220 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Cty MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill Totals

0 0 10 10

0 0 0 0

0 0 10 10

6 0 193 199

0 0 0 0

6 0 193 199

0 7 0 0 6 13

0 0 0 0 0 0

0 7 0 0 6 13

6 46 0 1 23 76

0 0 0 0 0 0

6 46 0 1 23 76

555

328

883

3987

2128

6115

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

2013 273 224 335 444 337 333 409 354 384 369 340 288 4,090

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 457 463 477 463 571 549 562 564 504 598 567 569 512 485 480 514 514 353 583 485 502 354 468 276

2019 234 234 357 411 391 387 471 429 396 500 410 434

2020 355 475 438 434 374 420 493 443 555

4,271

4,700

5,517

6,197

4,654

3,987

5,673

Comparison of Permits By Units Issued Year to Date

2013 - 2020 2013 2014 2015 2016 2017 2018 2019 2020

S-F Units 3093 3163 3449 4282 4644 4558 3310 3987

M-F Units 2098 3168 2521 3521 1627 2562 1929 2128

Total Units 5191 6331 5970 7803 6271 7120 5239 6115

^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 2020 Home Builders Assoc of Greater Kansas City. All rights reserved.

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