Building off of two previously published blogs detailing record-small sizes and record-high prices of new single-family lots, the National Association of Home Builders has released new analysis showing lot values are at their lowest share, less than 17 percent, of new single-family home sale prices since 1999.
Currently, New England has the highest share in the nation, with strict zoning regulation an important contributing factor, NAHB reports on their Eye On Housing blog.
Nationally, the share of lot values in new home prices fluctuated around 20 percent during the housing boom years, peaked at 21 percent in 2009 and has been declining ever since, despite the rising and record-setting lot prices. The declining share of new home sale prices attributed to lots suggests that other construction costs, including cost of labor and materials, are outpacing the rising lot values.
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