In 2024, the construction of single-family homes in Lawrence saw a significant downturn, with only 57 permits issued by the city—a stark contrast to previous years when the average hovered around the mid-100s. This decline has raised concerns among local stakeholders, particularly regarding its broader economic implications. The executive director of the Lawrence Homebuilders Association, Bobbie Flory, expressed that the situation is worse than initially anticipated. Concurrently, home prices have continued to rise, exacerbating housing affordability issues. City officials and industry leaders agree that addressing this issue requires a balanced approach between residential and commercial development to support the community's growth while preserving its unique character.

The drop in new home construction in Lawrence has not only affected the housing market but also reverberated across the local economy. According to Bobbie Flory, the reduced number of new homes means fewer opportunities for businesses and a smaller tax base for the city. Flory emphasized the importance of balancing residential and commercial property development to accommodate new workers and foster growth. She pointed out that less new housing can limit the city's ability to support various sectors, impacting the overall economic health of Lawrence. Jeff Crick, the director of planning and development, highlighted that home building hinges on five critical factors: land, labor, lumber, laws, and loans. While the city primarily influences the regulatory environment, other elements like material costs and labor availability are beyond municipal control.

One of the main challenges contributing to the decline in new home construction is the scarcity of suitable lots. Many available plots face issues such as drainage problems or difficult topography, making them less desirable for development. Additionally, Lawrence has developed a reputation for stringent regulations, which Flory believes complicates the development process. She suggested that reviewing the regulatory framework could ease development and encourage new growth. Flory also noted that the city's strategic plan and updated land development code signal a shift towards favoring infill lots and higher density, indicating that traditional single-family home growth may no longer be the priority. This shift reflects the community's evolving values and goals, including sustainability and transportation objectives.

Flory explained that the rising home prices are a direct result of supply and demand dynamics. With fewer new homes being built, the limited inventory drives up prices, affecting both buyers and sellers. If individuals cannot find alternative housing options, they may delay selling their current homes, further constraining the market. In response, the city aims to create more affordable housing options through changes in the land development code. Jeff Crick hopes these modifications will offer a wider range of housing choices, alleviating high prices and supporting diverse living arrangements throughout Lawrence. Ultimately, striking a balance between preserving the city's unique qualities and adapting to changing needs remains a central challenge for planners and residents alike.