Land Shortage Impeding New Home Supply

Land Shortage Impeding New Home Supply

In a May survey by the National Association of Homebuilders, 60% of respondents stated that the overall supply of developed lots was low to very low, the highest percentage since the NAHB began asking the question in 1997. The shortage is especially acute for Class A lots located in core markets. John Burns with John Burns Real Estates Consulting contends that, with the low supply of lots and the expensive price of choice parcels, builders have been forced to build larger, more expensive homes which explains the shortage of entry-level supply. With current land prices and entry-level price points, catering to this segment of the market remains economically unfeasible.

Read More

Previous Housing Market in Period of Normalcy
Next KB Q2 Earnings Beat the Street

About author

Steve Devorak
Steve Devorak 152 posts

Steve Devorak is a former Director of Land Acquisition and Project Manager with extensive experience in the Southern California land market.

View all posts by this author →

You might also like

Land/Projects

Chinese Developer, Landsea, Makes Splash in Orange County

Landsea Group of Nanjing, through its US subsidiary, Landsea Holdings Corp., closed on the Portola Center South project in Lake Forest. The project will consist of 569 homes at build-out

Land/Projects

TRI Pointe CEO on Infill Development

Doug Bauer, CEO of TRI Pointe Group, discusses some of the challenges and opportunities of infill development as well as his firm’s infill projects nationwide. In what is a growing

Land/Projects

Park Circle Master Planned Community Approved by Board of Supervisors

Touchstone Communities announced the approval of the 73.9-acre master planned community, located in Valley Center, California, by the San Diego County Board of Supervisors.