REALTORMag
Shortages of buildable lots reached a new record low in May, according to a survey of homebuilders within the National Association of Home Builders/Wells Fargo Housing Market Index. Sixty-four percent of builders reported that the supply of lots in their markets was “low” or “very low,” marking the highest percentage of reported shortage since NAHB began collecting such data in 1997.
The lot shortage may be part of the reason why new homes are being built at a rate of under 1.2 million a year. In 2005, when only 53 percent of builders reported a shortage of lots, total housing starts were more than 2 million.
