February 2018
Now’s the Time to Try Out that Great Idea
IBS Wrap-Up – pages 4-5 Sponsor Some Fun! – page 13 HBA and KCMO Work Together – page 14
“It’s as good as it gets,” said Economist Elliot Eisenberg with regard to the economic outlook for 2018. Eisenberg spoke to a crowd of about 250 at the HBA’s 2018 Economic Forecast Breakfast on Jan. 30 at the DoubleTree in Overland Park. “It’s not the highs of 2007 but the economy is good,” he said.
Kansas City. The labor market hasn’t been this tight since 1999, according to Eisenberg.
Eisenberg said unemployment is hitting historic lows both nationally and in Kansas City. The stock market is doing amazingly well, inflation is low and household debt is in good shape.
Within the real estate industry, Eisenberg said the inventory of existing homes for sale has been shrinking for the last 31 months and demand for multi-family is also declining as Millennials start families and look to purchase homes.
“There is no housing bubble,” Eisenberg noted. He did mention one aspect of the economy that is not doing as well: gross domestic product (GDP) is still growing at only a 2.1-2.3 percent rate. “It’s not going to get better,” said Eisenberg. The only way GDP will grow is if more people enter the workforce and the workforce as a whole works better (productivity) but both are currently in decline, according to Eisenberg. New competitions at the Home Show – page 6
Currently, the national unemployment rate hovers around 4 percent — and a little lower than that in
“We are out of people,” said Eisenberg.
Eisenberg confirmed that Millennials are waiting longer to purchase their first home due to their level of student debt. Fifteen years ago, student debt was one of the smallest debt classes, but today it is one of the largest debt classes (second only to mortgage debt). This is lengthening the time it takes for Millennials to purchase their first home — but they will purchase eventually, Eisenberg believes. Besides waiting longer to purchase a home, Eisenberg also believes the biggest challenge for home builders is the need for entry-level homes for Millennials. The in-
dustry is building large, 2,400-square-foot or larger homes but what needs to be built are 1,400 square-feet, $250,000 entry-level homes, he told attendees. “You’re building the wrong homes,” said Eisenberg, “but I understand why — because you have to, given the rising cost of materials, increasing regulatory burdens and shortage of labor.” Continued on page 2
www.kchba.org | Volume 24, No. 1 | February 2018
Kansas Legislative Day
Feb/March Calendar Feb 8
Associates Council
Feb 20
Board of Directors
Feb 28
Kansas Area Council
March 6
Missouri Legislative Day
March 28-30
Certified Sales Professional Classes
On Wednesday, Jan. 17, KCHBA representatives and members of the Kansas Building Industry Association (KBIA) gathered in Topeka for Kansas Legislative Day. The afternoon was spent visiting legislators to discuss issues of importance to the housing industry. Notable meetings included Speaker of the House Ron Ryckman, Senator Julia Lynn, Senator Dinah Sykes and Representative Tom Cox.
Sen. Dinah Sykes met with HBA members Lyn Leet, Kansas Gas Service, and David Elliott, Construction & Planning Services, as well as NAHB Field Representative Justin Reyes and HBA staff members Courtney Reyes and Kari English. KCHBA members broke into two groups to visit legislators. Several met with Speaker Ryckman
For more information or to register for any event, go to www.kchba.org or call 816-942-8800
© Cambria 2018
a valuable opportunity to discuss the harmful effect that taxing labor would have on Kansas business owners on a personal level. Another topic of discussion was workforce development, the HBA’s efforts to alleviate the labor
The HBA’s immediate priority in the Kansas Legislature is protecting the sales tax exemption on labor as it relates to new construction and residential remodeling. Any addition of a sales tax on labor services would dramatically increase the cost of building a new home, make it more difficult to qualify for
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Rep. Jan Kessinger and Rep. Sean Tarwater met with HBA members Dee Grisamore, Grisamore Real Estate Group, and Bill Arnold, Trendstone, as well as HBA staff member Katie Walkley.
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The ability of HBA members to meet with legislators face to face presented
shortage and the need to promote the skilled trades in schools. In the evening, members attended a reception held by KBIA that was open to all Kansas legislators.
Great Idea When asked whether there will be a recession in the next five years, Eisenberg said yes. The longest the United States has ever gone without a recession is 10 years and currently the U.S. is at eight years so the likelihood of a recession in the next five years is good. “But it probably won’t be as severe as the last one,” said Eisenberg.
Continued from page 1
In the meantime, Eisenberg said the economy will be good for the next 1.5 years as it gets an added boost from the recent tax reforms. With that in mind, Eisenberg suggested that if there is a new product you’ve been wanting to test in the market or a change you’ve been mulling, now’s the time to try it.
February 2018 | Volume 24, No. 1 | www.kchba.org
Missouri Legislative Session Begins Missouri lawmakers reconvened on January 3 to begin the 2018 legislative session. It has now been over a month and things are moving quickly. Both chambers have a significant amount of committee work on priority bills including tort reform, labor issues and tax reform.
early childhood initiative, and also pension, healthcare and Medicaid coverage. There are a few bills directly relating to the home building industry, which the HBA will continue to monitor. A roofer registration bill has been re-filed, allowing for voluntary registration of roofing contractors. The Realtors are putting forth a bill that would establish the “First Time Home Buyer Savings Account,” which the HBA supported in 2017. Also, a hearing was held recently on a pro-business workers’ compensation bill that would help regulate premiums.
The budget debate this year is expected to be difficult. First, the effects of tax reform at the federal level have yet to be seen. In addition, state tax cuts from a 2014 income tax bill will have a continued impact on incoming revenue. The legislature may have to work through a substantial budget shortfall during the appropriation process. Lawmakers may struggle to fund not only issues from last year such as prescription drug coverage and in-home care, but also additional challenges for the current budget cycle. These include continuing to fully fund the education formula, provide for the
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www.kchba.org | Volume 24, No. 1 | February 2018
2018 NAHB International Builders’ Show Draws a Larger, Enthusiastic Crowd An optimistic home building industry filled the exhibit halls of Orlando’s Orange County Convention Center as the National Association of Home Builders (NAHB) hosted one of the largest turnouts in recent years at the NAHB International Builders’ Show (IBS) Jan. 9-11.
In addition to meeting suppliers and seeing product demos throughout the three-day show, attendees networked with peers and attended any of more than 140 education sessions led by industry experts on a wide range of industry topics.
Home building professionals from around the world attended this year’s IBS—the biggest component of the annual Design & Construction Week, which also includes the Kitchen & Bath Industry Show (KBIS). The combined events drew more than 85,000 attendees. Of that total, about 60,000 were IBS registrants.
“After attending just two [education] sessions, I already found exactly what I came for,” said Walt Schumm, a custom home builder and president of C.D., LLC in Crestwood, Ky. “I’ve made several new connections with whom I think we’ll strike up business relationships. Plus, it’s really interesting to see a huge presence from Asian and European vendors on the show floor. The products they’ve got on display are just unbelievable.”
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“Each and every year, a tremendous amount of work goes into making IBS an extremely valuable, can’t-miss event for anyone in residential construction,” said Geoff Cassidy, NAHB senior vice president of exhibitions and meetings. “And once again, the show was an incredible success with a palpable enthusiasm reflective of the momentum in the home building industry.”
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Exhibit space for IBS also expanded from last year’s 569,000 square feet to this year’s 583,000 square feet, where more than 1,500 exhibitors displayed the latest in building products and technology. Many of the exhibitors noted the increased foot traffic this year.
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Next year, IBS and Design & Construction Week will be held in Las Vegas Feb. 19-21, 2019.
February 2018 | Volume 24, No. 1 | www.kchba.org
IBS attendees could tour the New American Home.
Thanks go to Spire for sponsoring the KCHBA cocktail party.
HBA members and staff at the KCHBA cocktail party.
Floating staircase at the New American Home.
5
There’s lots of time for networking at IBS!
www.kchba.org | Volume 24, No. 1 | February 2018
Home Show Focus on Next Gen The 2018 Greater Kansas City Home Show will offer new competitions for junior and senior high students. The Workforce Development taskforce has expanded last year’s student woodworking competition at the Greater Kansas City Home Show into a program known as the KC Manufacturing and Design Expo (KC MADE). Open to students in construction and manufacturing programs at local trade/high schools (grades 9-12), the contest will display woodworking mixed wood/metalwork projects during the Home Show, March 23-25, 2018. Projects are not limited in scope and can range from a tiny house to a dining room table. A panel of judges
will determine the award winners based on specific criteria. Winners will be announced during the Home Show. For information on entering the KC MADE contest, contact Courtney@kchba.org.
in each age group will be invited to the Home Show where their designs will be presented on stage. From there, two finalists in each age group will be selected for a live challenge at the Greater Kansas City Home Show. The final onsite project will be judged by a panel of experts in the design field and one winner will be selected from each age
group. Visit KCHomeShowChallenge. com for details and the entry form. There will also be fun for younger home show visitors – the Kids’ Zone will feature play equipment, music and science experiments. Plan now to visit the 70th annual Home Show and bring the entire family!
The Home Show Junior Design Challenge, open to students in grades 7 through 12, is brand new for 2018. Playing the role of interior designer, each entrant will submit the design for a teenager’s bedroom. Ten semi-finalists
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February 2018 | Volume 24, No. 1 | www.kchba.org
Teams Are Forming for the Hammer Out Hunger Challenge – Join One Today! The HBA is partnering with Harvesters again for the Spring Parade of Homes and Jerry Ratway is spearheading the challenge of raising $21,000 - or 63,000 meals. This time, there will be three teams: a Kansas team, a Missouri North team and a Missouri South team. We have three builders who have graciously agreed to be our honorary captains: • Gary Kerns, 2018 HBA President, Missouri North Captain • Jerry Braklow, 2018 HBA Secretary/ Treasurer, Kansas Captain • Shawn Woods, 2018 HBA Vice President, Missouri South Captain Now we need team members! Contact Jerry Ratway (ratway@weberflooring.
816-246-5373
816-765-4080
com) if you are interested in participating on a team and Hammering Out Hunger in KC. Builders FirstSource carries a wide selection of high quality building materials suited for both homeowner and professional builders’ needs. We take pride in personal service, and our talented and experienced team provides support to meet the needs of your specific project. Builders FirstSource provides quality materials that will perform well and look great.
Thank you to Rosehill Gardens for sponsoring lunch for our teams!
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The year’s most outstanding work in residential real estate sales, marketing and design was honored by the National Association of Home Builders (NAHB) at the National Sales and Marketing Awards gala (known as “The Nationals”), on Jan. 9 in Orlando at the 2018 International Builders’ Show.
A diverse panel of industry professionals from across the country selected
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Jodi Palin, vice president of sales and marketing for Summit Homes in Lee’s Summit, Mo., received the Sales Manager of the Year award at the gala. “She oversees a large team and a large amount of inventory, but has a positive attitude when things get bumpy,” The Nationals Winners Book states. “She can solve problems quickly. She is always looking for new training materials for her team, and thinking of great ways to keep the sales team motivated for success.”
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www.kchba.org | Volume 24, No. 1 | February 2018
Louisburg Extends Housing Trim size: Incentive Program 4.75 x 4.75
Dedicated to helping you put buyers into homes
Save on building fees in Louisburg, Print ad Kansas. The city has extended its housUncoated ing permit credit through 2018 for all new single-family residences. Most single-family residential permits are issued in less than three days, and often the same day! Builders should contact City Hall prior to construction at 913837-5811 to verify their savings. As a minimum, the city follows 2003 IBC and Welcomeaccepts Home to construction Louisburg, Kansasdesigned to newer codes. A typical homeowner can save from $1,200 to $1,500. Louisburg is just 15 minutes south of Overland Park in Miami County, Kansas. Make your home in Louisburg where you’ll be greeted by small-town charm, friendly neighbors, award-winning schools and just a short drive to work in metro Kansas City.
Your goal is to turn buyers into homeowners. Our goal is to provide financing to make that happen. So no matter what your client’s home buying goals, we can help you by providing financing options to meet nearly any homebuyer need.
Contact your Wells Fargo Home Mortgage branch today. Northland Office: 816-505-4110 Lee’s Summit Office: 816-329-2109 Overland Park Office: 913-319-7970 KC Bank Office: 913-234-7703
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7.25” February 2018 | Volume 24, No. 1 | www.kchba.org
Mark your calendar for 2018 Area Council meetings: Kansas – Johnson County Wastewater Sponsored by Bank of Blue
Mar. 28
Missouri North – KCMO City Council Members
April 18
Missouri South
May 22
Combined Area Council – Workforce Development
Aug. 22
Kansas Area Council
Sept. 25
Missouri North
Oct. 24
Missouri South
4.75”
Feb. 28 Valley
All members are invited to attend any Area Council meeting. The meetings are an excellent opportunity to network and learn about current issues facing the industry.
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www.kchba.org | Volume 24, No. 1 | February 2018
Member Anniversaries Building made easier.
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1948 McCray Lumber and Millwork 1948 Overhead Door Company of K.C. 1967 Moffitt Built 1972 Shamrock Cabinet 1974 Graham Construction Company 1983 Jim Haas Builders, LLC 1984 Brown Midwest, LC 1985 Locks & Pulls 1986 Riffe Homes, Inc. 1987 Premier Surfaces Prieb Homes, Inc. 1988 Bickford & Company, Inc. Dixon Construction Company, Inc. 1989 Hearthside Homes of Kansas City, Inc. 1990 Sherri L. Weaver Design, LLC United Heating, Cooling & Plumbing 1991 Dahmer Construction, Inc. 1996 Morrill & Janes Bank 1997 Owen Lumber Company 2000 J Davis Drywall LLC 2001 Royal Metal Industries, Inc. 2002 Gahagan & Eddy Building Company LLC Teague Lumber Company 2004 Steve Scherer Construction Company 2005 Crockett Electric Inc
2006 Kreimendahl Painting Principal Builders, LLC Quigley Custom Homes, LLC Window World 2007 Blackburn’s All Star Roofing, Inc. K Hill Builders SCI 2008 A Place Called Home Const. Co., Inc. Estes Custom Homes, LLC 2009 Mooremark, Inc. Performance Plus Homes Rosehill Gardens, Inc Singleton Construction LLC 2010 Associated Air Products Integrated Electronics, Inc. Legacy Custom Homes LLC 2011 Hilmann Home Building Inc K. C. Builders & Design, Inc Price Residential Group LLC ProSource of Kansas City 2012 Alenco, Inc. Ashlar Homes, LLC Covenant Homes, LLC Grisamore Real Estate Group Kansas Gas Service Klopfenstine Construction, Inc. 2013 Calyn Homes LLC Cardinal Crest Homes Digital Lagoon, Inc. Foushee Homes, Inc. McFarland Custom Builders Refined Interior Staging Solutions Wolf Creek Homes, LLC Wyss Construction, LLC 2014 Armstrong-Citywide Inc Aspen Contracting, Inc. Building Solutions Continued on page 11
February 2018 | Volume 24, No. 1 | www.kchba.org
Anniversaries Continued from page 10
2014 Darol Rodrock Homes Evan-Talan Homes, Inc Gabriel Homes Inc. JFE Construction Syler Construction, Inc. 2015 A Total Door, Inc Befort Construction, LLC Boise Cascade BMD Clean Efficient Energy Company, LLC Dan Smith Home Building Company Dwight Friedley Building Co, LLC Edward Wayne, Inc. Encore Building Company Groves Custom Homes, LLC Nick Zvacek Construction, LLC Still Contractors, LLC. StrucSure Home Warranty Taylor Sterling Construction 2016 Compi Distributors, Inc. Eagle 1 Construction Ethan Allen Retail, Inc. Homebridge Financial Services, Inc. McBee Custom Homes Safe Haven Security Services TF Forming Systems Inc UMB Bank 2017 BC Residential Homes, LLC BCI-Bowen Custom Homes Cuzco Painting & Remodeling, Inc. Ebberts Construction Clean-Up, Inc. Grants Custom Homes Harding Homes Kat Excavation, Inc. KC Building Company LDH Construction, Inc. Marvin Windows and Doors Parker Enterprise Samsung Semco Outdoor The Blind Broker Tim Hoelting Homes, LLC Wells Bank
New Members Elevate Design + Build, LLC Mike Yancik P.O. Box 58 Blue Springs, MO 64013 (816) 885-8663 www.ElevateDesignBuildKC.com Foundation Recovery Systems Shannon Sehnert PO Box 636 Moberly, MO 65270 (800) 466-8664 www.foundationrecoverysystems.com Hi Line Construction, LLC Jib Felter P.O. Box 2988 Olathe, KS 66063 (913) 333-7830
New Affiliates Christensen Lumber, Inc. Kyle Clifford John Queen 20300 W. 207th Street Spring Hill, KS 66083 (816) 935-9239 Hi Line Construction, LLC Jim Swanson P.O. Box 2988 Olathe, KS 66063 (913) 333-7830 Pella Products of Kansas City Kevin Tully Alex De Jong 11333 Strang Line Rd Lenexa, KS 66215 Platte Valley Bank Craig Hedrick, NMLS #405347 Billy Weiland, NMLS #499332 2400 NW Prairie View Rd Platte City, MO 64079 (816) 746-7638 11
www.kchba.org | Volume 24, No. 1 | February 2018
Kansas Legislative Update
75°
Kansas legislators returned to Topeka on January 8 to begin the 2018 session. The legislature opened with uncertainty as to who would assume the role of acting governor as Brownback’s appointment to U.S. Ambassador for International Religious Freedom had not yet been confirmed. The Senate’s Foreign Relations committee finally confirmed Brownback’s appointment on January 24, prompting his official resignation. Lt. Governor Colyer was sworn into office as governor on Wednesday, January 31st. Colyer has not yet named his Lt. Governor appointment.
Every degree matters.. ™
Controversy stormed the capitol as Governor Brownback proposed an additional $600 million in funding to finance education (K-12) over the next five years with no mention of tax increases during his State of State Address. Policy makers are concerned that Brownback’s plan would put the state in a deep budget hole
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KCHBA Partners with
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The annual Spring Seminar held by Johnson County Contractor Licensing is scheduled for February 20 through February 22 at the Overland Park Convention Center, 6000 College Boulevard, Overland Park, KS. Johnson County is the nation’s largest producer of construction code continuing education. Contact the Contractor Licensing office for registration.
This new partnership brings our members access to the nation’s leading Association Medical Benefits program. Some of the highlights are:
• Average 15%-20% Savings over Standard Market Plans • National PPO and Pharmacy Networks • Multiple Plan Designs to Choose From • Online Enrollment & Plan Management KCHBA members can learn more about the Outfront program at
www.ckcins.com/KCHBA or by calling us at
877- 388-1499 12
by 2020. As legislators have now began to work toward a more feasible funding model, the HBA is urging leadership to keep the skilled labor shortage in mind when determining the education budget as well as to avoid any funding requirements that could deter schools from promoting the skilled trades. Of importance to the home building industry, a bill has recently been introduced that attempts to repeal the current legislation that prohibits local municipalities from requiring fire sprinklers in single family units. The HBA will continue to monitor and oppose this bill. We also expect the legislature to examine all exemptions to fund the state government including the sales tax exemption on labor services. We will continue to communicate to policy makers the importance of this exemption to the home building industry.
February 2018 | Volume 24, No. 1 | www.kchba.org
Combine Fun and Business– Sponsor the HBA’s Sporting Events for 2018
Thanks to These HBA 2018 Sponsors PLATINUM
Kansas City Star Media Company Mike Bryant Heating & Cooling Wells Fargo Home Mortgage
DIAMOND
Stewart Title
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Bank of Blue Valley SILVER Bovard Insurance Group Henges Insulation & Fireplace Builders FirstSource Capitol Federal Morgan Wightman Supply Fasone & Partners North American Savings Bank Ferguson Enterprises Pacific Mutual Door First Federal Bank Shamrock Cabinet High Definition Drywall K&E Flatwork Kansas Gas Service BRONZE Kansas Granite Mart Commerce Bank Kenny’s Tile Complete Home Concepts Kitchens & Baths by Briggs Cornerstone Companies McCray Lumber & Millwork CrossFirst Bank Northcraft Flooring & Design Hermes Landscaping Owen Lumber Kansas City Title Phelps Engineering Locks & Pulls Rew Materials Pella Products of Kansas City Spire ProSource Raynor Garage Door Star Companies ReeceNichols Sun Lumber Wilson Lighting Trendstone/Cambria United Heating, Cooling & Plumbing
Don’t miss a shot at the opportunity to network with over 150 builder and associate members at either the annual Golf Tournament on May 31 or the 2018 Clay Shoot (October 11). The presenting sponsor of each event will receive these benefits: • Greet golfers/shooters and provide logoed items to them • One golf foursome/shooting team • Presence and signage at event • Presentation of awards • Top tier logo placement on golf communications (Flyer, BBN stories, TWHBA items) Sponsoring an HBA event puts your company in front of hundreds of potential business contacts--and you’ll have a great time, too! Contact Dawn (dawn@ kchba.org) to let her know you’re interested in either the golf tournament or clay shoot.
Come to Pitt State to Find Your Next Employee HBA members will be visiting Pitt State on Feb. 27 from 6:00 p.m. to 8:00 p.m. to meet students currently in the university’s residential construction program, tour their state-ofthe-art facility and provide a short overview of the opportunities available at their companies (both builders and associates welcome).
HBA Staff
Josh Clark Executive Vice President jclark@kchba.org 816-733-2216 Marcia Jurgens Vice President of Administration marcia@kchba.org, 816-733-2215
Don’t wait until May when most graduates will already have jobs. This is a great opportunity to network with potential employees and introduce them to your company now!
Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219
If you are interested in attending, RSVP by Feb. 21 to Courtney@kchba.org or call 816-942-8800. 13
Dawn Allen Director of Member Services & Events dawn@kchba.org, 816-733-2239
Tricia French Membership & Events Support tricia@kchba.org, 816-733-2217
Kelcee Schlotzhauer Permit and Show Sales Coordinator kelcee@kchba.org, 816-733-2246
Courtney Reyes Government Affairs Manager-Kansas Workforce Development courtney@kchba.org, 816-733-2214
Katie Walkley Government Affairs Manager-Missouri katie@kchba.org, 816-733-2241 Kari English Communications Director kari@kchba.org, 816-733-2213
Nicole Orr Administrative Assistant nicole@kchba.org, 816-733-2221
www.kchba.org | Volume 24, No. 1 | February 2018
Progress on Building Issues in Kansas City
THE
In late 2017, HBA builders met with KCMO City Manager Troy Schulte, Councilwoman Heather Hall, and high-level Planning and Development staff to discuss ongoing issues in the city such as inconsistencies in plan review and inspections, delays, and lack of follow-up from previous meetings. It was a productive meeting, with the city clarifying certain processes, committing to a 7-day plan review turnaround time, planning quarterly meetings with builders, and more. Councilwoman Hall was instrumental in arranging this meeting and the HBA appreciates her support of the home building industry.
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• The Planning and Development Department will guarantee a plan review turnaround time of 7 days for IRC covered building permit submittals, starting immediately
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• City staff distributed information about certified plans, an option to submit plans reviewed by a licensed design professional for an expedited city review process
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• It was clarified that Kansas City accepts and encourages the use of master plans • Continue to hold quarterly meetings with the HBA to maintain open communication • The department will notify the HBA about new areas of inspection that are now being enforced that previously were not common to regular inspections
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City staff also provided a list of common issues they encounter with residential plan submittals. The HBA encourages builders to review this list to avoid
Fasonepartners.com 14
extra rounds of reviews Common Issues with Residential Plans • Follow the plans once they are reviewed (prior to inspection). [Note that inspectors are to indicate when you have deviated from the plans] • Verify that all requirements of plan submittal are met prior to application, per the IB100 application form • Verify that the engineer has looked at the plan prior to designing field changes • Timely submittal of deferral packages (e.g. truss packages) – don’t wait until needed for inspection • For plans similar to previously reviewed plans, reference the prior plan and note any differences • Include site plans with site-specific plan submittal Re-Submittals: • Reference the existing project number with re-submittal documents • Cloud all changes on drawings and include a written description of responses for clarity • Verify that responses have been provided to all requested items prior to making the re-submittal The HBA and Kansas City share the goal of a streamlined building process that encourages growth and delivers high quality housing to the community. Please continue to send the HBA feedback about your experiences as the collaboration moves forward. Assistant Director Greg Franzen also stated that you should not hesitate to contact him or any CPD staff anytime there is a question.
February 2018 | Volume 24, No. 1 | www.kchba.org
Residential Building Permit Statistics More Than 6,000 December 2017 Single-Family Permits Residential Building Permit Statistics DECEMBER 2017 Issued in 2017 Single MultiS-F M-F Total Single MultiS-F M-F Total Number marks an achievement not seen since 2007 The number of single family permits totaled 6,197 in 2017 – the first time in 10 years permit activity has surpassed the 6,000 level, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. With an increase of 680 permits, 2017 registered a 12 percent increase over the total for 2016. Additionally, this number of permits approaches the median annual level of 6,385 reported over the past 37 years. “About six months into 2017 we were pretty sure that the number of permits pulled in 2017 would surpass the previous year’s number,” said Josh Clark, executive vice president of the HBA. “But we didn’t think it would be more than 10 percent so to have a 13 percent increase in permits pulled is very exciting and reinforces the HBA’s confidence that the home-building industry is strong.” Nationally, the National Association of Home Builders Chief Economist Robert Dietz predicts further growth in 2018, stating that “builders are continuing to increase single-family production to meet growing demand for housing. With low unemployment and increasing owner-occupied household formation, single-family starts should continue to make gains in 2018.” Kansas City, Mo., topped the list of area cities with the largest number of permits issued in 2017 with 935, although this is a decrease of 155 permits from 2016. Other cities at the top of the 2017 permitting list are: • Olathe with 637 permits issued • Lee’s Summit at 468 permits issued • Overland Park with 460 permits issued • Kansas City, KS/Wyandotte County with 308 permits issued
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
Family Family Total Units^ Units% Units 0 8 4 0 0 1 0 3 7 7 9 1 40
0 0 0 0 0 0 0 0 0 0 0 0 0
0 8 4 0 0 1 0 3 7 7 9 1 40
Units YTD
Units YTD
Units YTD
3 103 84 2 3 8 8 39 93 49 281 14 687
0 0 0 0 0 0 0 0 0 0 0 0 0
3 103 84 2 3 8 8 39 93 49 281 14 687
3 2 1 29 5 0 6 0 0 4 50
0 0 0 0 0 0 0 0 0 0 0
3 2 1 29 5 0 6 0 0 4 50
69 19 27 684 125 0 58 5 0 155 1142
0 0 0 0 0 0 0 0 0 0 0
37 0 31 0 0 5 7 3 0 20 1 0 0 104
0 0 0 0 0 0 0 79 0 0 0 0 0 79
37 0 31 0 0 5 7 82 0 20 1 0 0 183
227 0 147 4 20 123 79 80 6 429 56 0 0 1171
0 0 0 0 0 0 0 602 0 308 0 0 0 910
227 0 147 4 20 123 79 682 6 737 56 0 0 2081
11 6 0 7 2 0 0 26
0 0 0 0 0 0 0 0
11 6 0 7 2 0 0 26
169 58 0 182 43 14 3 469
276 0 0 0 0 0 0 276
445 58 0 182 43 14 3 745
0 0 1 8 4 5 46 0 1 45 41 4 0 25 14 0 194
0 0 0 0 0 0 26 0 0 286 0 0 0 0 0 0 312
0 0 1 8 4 5 72 0 1 331 41 4 0 25 14 0 506
19 0 10 105 61 54 307 4 6 637 460 54 9 181 124 3 2034
120 0 0 0 0 0 519 0 0 316 287 6 0 0 0 0 1248
139 0 10 105 61 54 826 4 6 953 747 60 9 181 124 3 3282
15
Family Family Total Units Units^ Units% Units YTD LEAVENWORTH COUNTY Basehor 7 0 82 7 Lansing 18 0 24 18 Leav. County 3 0 90 3 Leavenworth 0 0 11 0 Tonganoxie 1 0 46 1 29 0 29 253 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill
Units YTD
Units YTD
0 0 0 0 0 0
82 24 90 11 46 253
0 0 14 14
0 0 0 0
0 0 14 14
12 2 308 322
0 0 0 0
12 2 308 322
3 5 0 1 2 11
0 0 0 0 0 0
3 5 0 1 2 11
25 58 0 12 24 119
0 0 0 0 0 0
25 58 0 12 24 119
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 273 287 224 216 335 362 444 439 337 385 333 364 409 375 354 352 384 383 369 468 340 312 288 328
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 457 477 571 562 504 567 512 480 514 583 502 468
4,090 4,271
4,700
5,517
6,197
69 19 27 684 125 0 Totals 468 391 859 6197 2434 8631 58 5 Comparison of Single Family 0 155 Building Units for Greater Kansas City 1142 (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
2010 137 145 252 228 213 239 180 243 173 279 173 209 2,471
2,301
3,299
Comparison of Permits By Units Issued Year to Date 2010 - 2017 2010 2011 2012 2013 2014 2015 2016 2017
S-F Units 2471 2301 3299 4090 4271 4700 5517 6197
M-F Units 253 600 1775 2879 3910 3995 4451 2434
Total Units 2724 2901 5074 6969 8181 8695 9968 8631
^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. Rev 1.29.18
www.kchba.org | Volume 24, No. 1 | February 2018
This month’s pro tip is:
‘Building More Appetites’ Cookbook The “Building an Appetite” cookbook series was inspired by Doug Wistner, son of NAHB Immediate Past Chairman Granger MacDonald and his wife Kathy. Doug was a passionate cook who passed away unexpectedly in January 2015. To honor his memory, the MacDonald family created a cookbook series known as “Building an Appetite.” The first cookbook was a compilation of recipes submitted by NAHB members and their families, as well as staff. All sales proceeds have gone to support the National Housing Endowment/NAHB Doug Wistner Scholarship Fund. Because the first edition was such a success, we decided to create a second edition, “Building More Appetites.” So whip up your favorite recipe, take some pictures of it, and submit your selection using the form at nahb.org by summer 2018. “Building More Appetites” will be available for purchase at future NAHB meetings and online.
BEFORE YOU BUILD YOUR NEXT HOME, STOP BY OURS. Working with builders to grow our community since 1989. Visit bankbv.com for more info.
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COMMUNITY | PHILANTHROPY | ENTREPRENEURSHIP
BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY February 2018 • Volume 24 • Issue 1
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 Katie Walkley and Kari English Graphics Karla Peterie, Creative Services
BUILDING COMMUNITY In business since 1927,
NASB is one of the largest construction & development lenders in the Kansas City area.
2018 Executive Committee
Home Builders Association of Greater Kansas City
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 16
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