Single-family home construction in Lawrence continues to decline as home prices rise

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Construction of single-family homes in Lawrence continued to decline in 2024, reaching a new low with only 57 permits granted by the city.

After averaging in the mid-100s for years, single-family home construction dropped off considerably in 2022 and fell even lower last year.  

“It’s just been even worse than what we would have anticipated,” said Bobbie Flory, executive director of the Lawrence Homebuilders Association. 

At the same time, sale prices for single-family homes have continued to rise. 

Flory said less new housing reverberates across the local economy. With less housing, the city can support fewer businesses and has a smaller tax base. Flory said the development of residential and commercial property needs to be balanced, with housing to support new workers and growth. 

“There’s a lot of economic impact, not just to the community, but also to the city of Lawrence to make their budget,” Flory said.

Jeff Crick, director of planning and development for Lawrence, said home building can be simplified to five key factors: land, labor, lumber, laws and loans. 

Crick said most of the city’s role is with laws, and lots of the other factors are out of the city’s control, like the increased price of building materials and labor. 

Bobbie Flory

Flory said one of the biggest factors in the decline of new homes is a lack of available lots to build on. She said many lots available to develop are undesirable because of drainage issues or challenging topography. 

She said Lawrence has developed a reputation of being a challenging place to develop because of strict regulations. 

“I think just taking a look at the regulatory environment that we’re in I think would really be helpful in easing the development process,” she said. “An attitude and a desire of wanting new growth is what we need.”

Crick said the question of how to approach new development is a question of values in the community.

Much of what’s built into the city’s strategic plan and new land development code is to ensure the city remains committed to its transportation and sustainability goals. 

“It’s something I’m always watching for,” Crick said. “I know my staff is always watching. We have those kinds of reviews: Is it giving us what we want? Is this where the community wants us to be? It’s a great conversation we love to have with the community every time we can.”

People in Lawrence all have different views on what makes the city special, Crick said. Working to continue to grow and adjust while keeping the qualities that make Lawrence unique can be a challenge. 

Jeff Crick

“There’s probably going to be some changes that are going to happen because the world’s just evolving around us,” Crick said. “And one of the things we always talk about and always try to keep in mind is, you know, it’s very tough sometimes to envision a change because it’s not what we’re used to. But, we don’t also want to change so much that we’re not us in the same way.” 

Flory said the city’s strategic plan and new land development code signaled to builders the city wanted more development on infill lots and increased density. 

“So, there’s kind of been a little bit of movement, even from our city, on those growth issues that I think have had an impact and have sent the signal that, you know, traditional single-family growth is not what they’re looking for,” Flory said.

Flory said the price increase for homes is simple supply and demand: If new homes aren’t being built fast enough, the price goes up. And the impacts reverberate, she said. Housing is connected. If someone wants to sell their house but don’t have somewhere else to go because the open housing inventory is low, they will likely stay put, which takes a possible house off the market.

Trying to create more affordable housing options was a guiding light for changes to the land development code, Crick said. He hopes the new code will help alleviate high prices by creating more options for housing throughout the city. 

“Our old code was good at giving some options, but not allowing others,” Crick said. “We hope the new one is really good at giving a much wider, wider menu of options and availability.”

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Cuyler Dunn (he/him), a contributor to The Lawrence Times since April 2022, is a student at the University of Kansas School of Journalism. He is a graduate of Lawrence High School where he was the editor-in-chief of the school’s newspaper, The Budget, and was named the 2022 Kansas High School Journalist of the Year. Read his complete bio here. Read more of his work for the Times here.

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