Lot Values Reached Record Highs in 2021
After rising steadily throughout 2021, the U.S. median lot price for single-family detached housing starts stands at $55,000, reaching a new record in six out of nine Census divisions, NAHB Eye on Housing reports. In New England and Pacific, lot values surged 67% and 39%, respectively, to reach historic highs as a result of record lot shortages, building material price hikes, and relentless supply chain challenges.
New England saw the most substantial growth in 2021 when its median lot price reached $200,000, almost quadrupling the national median. Despite having the smallest lots, the Pacific division also saw its median lot price rise significantly to $143,000 in 2021, the second most expensive value in the nation.
When adjusted for inflation, lot values are now close to the record levels of the housing boom of 2005-2006 when half of lots were valued over $43,000, which is equivalent to about $57,800 when converted into inflation-adjusted 2021 dollars. At the same time, home building shifted towards smaller lots, resulting in record high prices per acre.