Construction of new homes is climbing nationwide and skyrocketing across the Midwest, but such work in Lawrence is anything but brisk.

Housing starts this year in Lawrence are off to their slowest start in more than two decades, despite a national market that has shown increases during five of the past six months.

Blame a glut of new homes available for sale in town – especially those listed for more than $200,000, said Mike McGrew, vice chairman for Coldwell Banker McGrew Real Estate in Lawrence.

“The market is saturated,” McGrew said. “I do think there are some spots in the new construction market that there’s too much inventory. Builders are wisely not adding to that. You kind of have to wait for the market to catch up.

“Builders and Realtors are exercising a little self restraint in that price range.”

Of the 97 new homes in Lawrence currently listed for sale by Realtors, only 23 are available for less than $200,000, McGrew said. The median price – the number for which half are listed for more and half are listed for less – is $329,900.

“That’s a big number,” he said.

High construction costs and a lack of available lots are slowing construction of new homes in Lawrence, where housing starts through May were at their lowest level since 1982. Foundation work has started for this new home at 438 Ala., in an established Lawrence neighborhood.

In Lawrence, builders have secured permits for 72 new homes during the first five months of this year, according to reports from the city’s Department of Neighborhood Resources. The total is the lowest through May of any year since 1982, when there were 62 permits issued.

Lawrence’s pace for housing starts defies regional and national trends.

The U.S. Commerce Department reported Thursday that housing starts were up nationwide by 0.2 percent in May, the fifth time in six months that such starts had increased. The Midwest’s increase for the month was 18.7 percent.

While national economists talk about the red-hot housing market and discuss fears of a “housing bubble” that could collapse, Lawrence builders are facing other challenges.

It’s difficult to buy a lot in Lawrence for less than $60,000, which in turn leads to homes being built for at least $270,000, McGrew said.

Bobbie Flory, executive director for the Lawrence Home Builders Assn., said the inability to provide affordable housing was the main driver behind the sluggish housing starts.

Also contributing: rising construction costs and a relative lack of land available for construction, she said.

“We’re not able to build in a price range in Lawrence that everybody can afford,” Flory said. “People are paying a premium to live in Lawrence.”

Buyers aren’t the only ones getting squeezed, Flory said. Builders typically have 27 contractors working on each house project, and the Lawrence slowdown is affecting them, too.

“When the permit numbers go down, there’s more competition for the jobs that are out there,” Flory said.

Homes aren’t the only sector of the building industry that is struggling.

The city issued permits in May for construction valued at $4.7 million. The total was down from $16.5 million a year earlier, and the lowest total for the month since $2.7 million in May 1986.