Luxury homes are becoming more expensive because good land is hard to come by.
Realtor.com reports that median list prices for land in the top luxury markets in the U.S. is up 8.7 percent in this first half of 2016 compared to the same period last year.
The shortage of vacant, developed lots in prime areas is the main cause for the rise in land prices. Like most housing market woes, these problems can be traced back to the 2007 recession, as Robert Dietz, NAHB’s chief economist, explained to Realtor.com.
The greatest jumps in median land prices were experienced in some of the ritziest locales, including Beverly Hills, The Hamptons, and downtown Miami.