New construction homes in Kansas City: builders permit the most August homes since at least 2019 while sales slow

New construction homes in Kansas City just had the most August permits since at least 2019, while new-home sales slow. The Home Builders Association of Greater Kansas City said on Oct. 6, 2026 that August brought 629 single-family permits, up from 315 a year earlier. The prior high August on its file was 502, in 2021. January through August 2026 totals 4,018, about 40 percent ahead of those months in 2025 (2,873), and 370 short of the 2025 full year of 4,388. September new-home closings still fell 11.2 percent, to 262, while existing-home closings fell 6.2 percent, to 2,854.

This report is part of the research library on the Saving KC Homebuyers site, filed with the Kansas City market reports. The September contract count for the five large counties is in pending sales, September 2026.

Why did new-home closings fall faster than older homes?

September new-home closings were 262, down from 295 a year earlier, and KCRAR calls that an 11.2 percent drop. Existing closings were 2,854, down from 3,043, a 6.2 percent drop. New-home days on market rose 8.4 percent. New-home supply moved from 5.4 months to 5.1. Year-to-date new closings were still up 4.3 percent.

The permit side of the same season is the other half of the story. The builders association published its August file on Oct. 6, 2026. Every month from January through August 2026 was above the same month of 2025, and August was the high point.

January through August 2026 was 4,018 single-family permits, about 40 percent ahead of January through August 2025, which was 2,873. That is 370 short of the 2025 full year of 4,388. August 2026 is the highest August on the file. The prior high was 502, in August 2021. January through August 2021 was 4,220, which is above this year's 4,018. The association said August was nearly 100 percent higher than August 2025.

KCRAR's September report says the Fed raised its benchmark a quarter point on Sept. 16, 2026, to a range of 3.75% to 4%, and that the 30-year mortgage moved above 7% in late September from an August average of 6.67%, citing Freddie Mac. That rate path is the association's account.

From January through September, new-construction closings were 2,665, up from 2,556 a year earlier. KCRAR states that change as +4.3%. September itself was the soft month.

The September averages were 116 days for a new home and 35 days for an existing home. A year earlier those averages were 107 and 32. The gap was already wide. The change this year is the 8.4 percent rise in the new-home wait.

One-unit building permits are still ahead of last year's Census count even while September sales of new houses slowed. Census counted 5,202 one-unit homes permitted in the Kansas City, MO-KS metro in 2025, up from 4,875 in 2024. Through August 2026 the estimate was already 3,915, compared with 3,435 through August 2025.

How do new construction homes in Kansas City change an older-home sale?

New homes were 1,491 of 8,832 listings in September, which is 16.9 percent, and 262 of 3,116 closings, which is 8.4 percent. Existing homes brought 96.7 percent of the original price. A longer new-home list does not set the price of an older house. The offer sheet on that house does.

Inventory was 7,341 existing homes and 1,491 new homes. Closings were 2,854 and 262. Pending sales were 2,382 existing and 238 new. None of those figures is a forecast for one address.

If you are going to list, the repair question is separate from the wait. Buyers who can tour a new house will notice a roof, a kitchen, or a foundation. The calculator leaves repairs blank until you type a quote. A related walk-through is selling when the house needs major repairs.

What the headline numbers don't show

The September sales drop is real. It still leaves out the difference between a permit, an apartment building, a late report, and a house a buyer can tour this weekend.

Is a permit the same thing as a house for sale?

A permit is permission to start a building. It is not a listing and not a sale. Census counted 5,202 one-unit permits in the Kansas City metro in 2025. KCRAR counted 262 new-construction closings in September 2026. The August builders-association count uses a third map. Those starts are not this month's listings.

Did house permits and apartment permits move together?

Kansas City, Missouri one-unit permits rose from 429 to 516. Units in buildings of 5 or more fell from 2,160 to 1,161, so the city's total units fell from 2,878 to 1,869. Lee's Summit apartments in that size rose from 93 to 1,179. House permits and apartment permits are different products.

Which permit count is which?

The 2025 one-unit estimate is 5,202 and the reported-only count is 4,964. Five large counties sum to 4,011. Through August 2026 the estimate was 3,915 and the reported count was 3,577. Census fills in late offices inside the estimate. The Heartland sales map is wider than the Census metro.

What are local builders saying?

KCUR framed its July 12, 2026 story as a housing construction slump, but not in Kansas City. Citing the Census Bureau, the story said May permits in the metro rose 66.7 percent from May 2025 and 5.7 percent from April. Shawn Woods of Ashlar Homes described March through May as lackluster after a strong start.

Nick Erickson of the Housing Affordability Institute said that after Kansas City adopted a strict energy code, "production in Kansas City ground to a halt for a few months." The story says the city rolled back portions of that code in February 2026. The sales comments from Shawn Woods of Ashlar Homes in Blue Springs come from the same July 12 story.

"January and February, we started off the year incredibly well, so sales were way ahead of where they were in the previous year," he said. "And then March, April, and May have kind of been lackluster."

Shawn Woods, CEO, Ashlar Homes, Blue Springs, quoted by KCUR and Missouri Business Alert, July 12, 2026

Woods estimated Ashlar sold 20 to 25 percent fewer homes in March, April, and May than in those months of 2025. He also said a large pickup may have to wait.

"For any large uptick or large increase, I think we're going to have to wait till spring of next year, and see what the interest rates hold."

Shawn Woods, CEO, Ashlar Homes, Blue Springs, quoted by KCUR, July 12, 2026

What does this mean if you have to sell on a deadline?

A tax sale date does not move because a new house nearby is slow to sell. An empty inherited house still has taxes, insurance, and utilities. A landlord still has showings, or a vacant unit. The calculator uses the existing-home wait, your costs, and a cash offer you type yourself.

More on this desk: the October investor update and the Missouri property tax guide.