In spite of higher interest rates and higher costs for building materials, new home construction in the area remains steady. That doesn’t mean housing is affordable, however.
The number of permits issued for new single-family homes in Clinton in 2022, 2023 and in the first half of 2024 was six, nine and four, respectively. According to Chuck Bailey, Community Development Director for the city, the annual number of new homes typically is less than 10 but moves up and down.
What hasn’t gone down is the cost to build, which prices many people out of the new home market.
“We have a growing vacuum,” Bailey said. “We have a shortage of housing for low- to middle-income people.”
He said that many homeowners choose to remodel, updating cabinets and finishes and opening up interior spaces, because they cannot afford to upgrade.
“Everyone is hanging on to what they have because of construction costs,” he said, noting a void in the starter home market for houses in the $200,000 to $300,000 range.
That dynamic also is true for renters, he added. He said that an abundance of smaller, low-rent, older homes with a $400 monthly lease has disappeared. Those same homes now rent for $600 or more per month.
Home construction has continued at a relatively even pace in the county, said Scott Largent, Henry County Assessor. He said many of the individuals who build have cash available and are not as dependent on interest rates.
Largent’s records show new residential construction countywide, which also includes the city of Clinton, was valued at $10.4 million in 2022 and at $18.1 million in 2023. New residential construction in 2024 to date is at $16 million. Those numbers include new homes, additions and larger structures, such as garages, Largent said.
Home values ranged widely for both the city and the county. For example, single-family home building permits in 2022 within city limits ranged from $165,000 to $2 million plus, Bailey said. Of the nine permits, only half were issued for less than $300,000.
Assessor’s records show that in Henry County, 16 new homes with price tags greater than $300,000 were added to the county’s rolls in 2023. The value of those homes was nearly 43% of all new residential construction.
The shortage of affordable housing in Clinton and Henry County is common, according to a research report on housing affordability and supply published in April 2023 by the National Association of Realtors.
“Households earning $75,000 – the median household income in the U.S. – can afford to buy a home up to $256,000. For example, nearly 51 percent of households earn $75,000 or less. In a balanced market, these households would be able to afford to buy 51 percent of homes available for sale. However, only 23 percent of the listings currently have a price lower than $256,000,” the report stated.
For comparison, the median household income in Clinton in 2020 was $44,658 and projected to be $48,768 in 2025, according to the city’s website.
The rising cost to build a home has opened up a market for Brent Hastie, owner of OnPoint Home Design & Contracting. His company, based in Archie, currently has three new homes under construction in the Jamestown subdivision on the south side of Clinton.
“We’ve been busier than ever the last couple of years,” he said. His company has focused on the starter home market, which has less competition and provides steady work for his employees. Buyers in this category include first-time buyers, empty nesters and single-parent families.
“We complete a ‘spec’ house in 120 days,” he said. “We start construction 30 days from when the building permit is issued.”
A typical house for Hastie is 1,550 to 1,660 square feet with three bedrooms, two baths and a two-car garage. The homes are low maintenance. All are built on slabs with zero entry because the price per yard of concrete has more than doubled in the past few years, he said.
“What started out as an effort to build in the starter home market is now all about trying to keep costs down,” he said. “Now it’s almost a necessity. When we build a custom house, the buyer has to decide whether it’s beneficial to spend $40,000 to $50,000 to add a basement.”
When he started in 2006, the houses Hastie built sold for $130,000. The same house today sells for $279,000 – which is less than the starter market value of $350,000 that he finds closer to Kansas City.
Hastie said the product he builds fits better in a city like Clinton, which is right on the edge of the greater Kansas City area, and especially with a planned urban development like Jamestown. With the subdivision mapped out, the city is willing to grant smaller lot sizes and setbacks, which allows a builder to put more houses per acre and keep a better handle on costs. He’s optimistic about a second development he’s pursuing in an older part of Clinton.
“I believe in affordability and accessibility,” he said.
