REALTORMag
Affordability issues have probably been making more of your clients nervous, and here’s one culprit you can point to: lot shortages. The lack of lots suitable for new construction hit a new high in 36 major markets in August, according to a new report from housing research firm Metrostudy. Meanwhile, demand for new lots in those markets zoomed to all-time highs.
For nearly two years, builders have said they’ve faced a scarcity of lots in prime locations at a reasonable price. It’s preventing them from being able to take on more affordable projects in major markets, they say. The shortage also has caused home values to escalate, says Robert Dietz, chief economist at the National Association of Home Builders.
