Lot Shortage: A Lingering Problem for Builders

Filed in Economics by on May 29, 2015 3 Comments

Fig1HousingStartsSupplyofLotsIn a May survey conducted by NAHB, 62% of builders reported that the overall supply of developed lots in their areas was low to very low. By comparison, 43% of builders reported this was a problem in September 2012.

The 62% response pertaining to a dearth of lots is the highest percentage recorded since NAHB began periodically asking the question in 1997 on its monthly survey for the NAHB/Wells Fargo Housing Market Index. Read a further analysis on the Eye on Housing blog by NAHB economist Ashok Chaluvadi.

Comments (3)

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  1. John Bitely says:

    NIMBY is coming alive again, how quick people forget that homes equal jobs. No Lots, No homes.
    Also cost for infrastructure is going up like crazy due to shortage of excavators and nothing has been done about all the requirements on these items. (well some requirements have gotten tougher)

  2. Henry Butler says:

    I held on to a lot of lots when the market made a down turn. My friends said I was stupid. Now that prices are rising, I hear a different song.

    It’s too bad that many builders blew their inventory by selling at too low prices. Builders and buyers are in for a rude awakening when they have to build and pay for more lots at current prices.

  3. The West Dallas lots went from $2,500 to $15,000 in 2015 alone. This area is hot because of the proximity to Downtown Dallas & close to Oak Lawn area.

    As home builders for DFW CONSTRUCTION,we are already experiencing a tremendous price jump!! We are forced to sell medium homes higher than we anticipated. Good luck builders.

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