Last Friday’s infographic showed how the price of land has risen over the last 40 years in various regions across the country. Now, switching gears we learn that the NAHB’s Eye on Housing is reporting that lot shortages hit a record high in May with 64% of builders reporting that the supply was low/very low in their market. This number is 62% higher than last year and the highest since the NAHB began collecting data in 1997.
“The percentage varies somewhat, based on region of the country, size of builder, and type of lot. Although the categories are seldom defined precisely, builders often think in terms of A, B and C lots, based on the desirability of their location. As you might expect, the shortage tends to be most acute for A lots. In the May 2016 survey, 69 percent of the builders said A lots were in short supply, compared to 60 percent for B lots, and 47 percent for C lots.”