Sixty-four percent of builders reported that the overall supply of developed lots in their area was either “low” or “very low” in the June 2017 NAHB/Wells Fargo Housing Market Index (HMI) survey. This number is unchanged from the May 2016 survey, and is the highest share reported since the NAHB began periodically asking the question in 1997.
The NAHB’s Eye On Housing blog reports that this low supply of developed lots is hindering a faster housing market recovery. This is especially true in desirable living locations, where fewer lots translates to higher home prices. In June 2017, 81 percent of home builders said the price of developed lots in the most desirable locations was somewhat to substantially higher than it was a year earlier.