Currently Reading

Builders Reporting Developed Lot Shortages

Planning + Development

Builders Reporting Developed Lot Shortages

Along with labor and material shortages, home builders are struggling to find available lots

October 26, 2021
Vacant lot
Photo: Eli Pousson

While labor and material shortages are creating drawn-out obstacles for home builders, a low supply of developed lots across the U.S. is also delaying housing starts, the NAHB’s Eye on Housing reports.

A recent survey conducted by the NAHB found that 76 percent of builders reported low to very low supply of developed lots in their respective areas, a record high supply shortage since the NAHB first began collecting data in the 1990s.  

The information comes from special questions on the survey for the NAHB/Wells Fargo Housing Market Index (HMI).   Responding to questions on the September 2021 HMI survey, 46 percent of single-family builders characterized the supply of lots simply as low, and 30 percent said the supply of lots was very low, for a total of 76 percent of builders indicating some type of problem with lot supply.

In addition to the overall supply, since 2013 the HMI survey has also asked builders to rate the supply of A, B and C lots in the areas where they build separately.  As usual, shortages tended to be most acute among lots in the most desirable, or “A,” locations.  Seventy-four percent of builders said that the supply of “A” lots was low or very low, compared to 67 percent for “B” lots and 57 percent for “C” lots.  All three percentages are at record highs, however, indicating that lot supply problems are historically widespread irrespective of the desirability of the locations.

Read More

Related Stories

Land Planning

The Nation’s Largest Builders Are Speeding up Land Purchases, but What Happens if the Market Cools?

Home builders across the U.S. are buying up lots at a lightning pace, but a cooling market could spell trouble for overconfident developers


Builders and Developers Report Tighter Credit in the First Quarter of 2022

Availability of credit for land acquisition and development worsened at the start of 2022, builders say 

Land Planning

Land Market Records Largest Gains in Nearly a Decade

Land sales saw a substantial uptick throughout 2021 as demand for housing development reached a new high


More in Category


Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.