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.
About author
You might also like
Bressi Ranch housing project gets the OK
By Steve Puterski After a marathon session of presentations, discussions and remarks from the public, city council approved on Tuesday a controversial project in Bressi Ranch. After nearly four hours
City of Industry Plans to Sell Large Parcel in Chino Hills
The approximately 2,500-acre Tres Hermanos Ranch property owned by the City of Industry, but falling within the borders of Diamond Bar and Chino Hills, will be marketed soon by land
Coastal Commission Considers Allowing More Residential in San Diego County
At the California Coastal Commission’s January 7, 2015 meeting, the Commission will consider expansion of the IP-3-1 (industrial park) Zone to allow for residential development that meets certain pre-defined criteria.
