As new home construction prices have reached unprecedented levels in the last year, so too have the empty lots where those homes may eventually be built.
According to a new study just released by the National Association of Home Builders, the median lot price nationally is now at $55,000, with some regions of the country far exceeding that figure.
In New England, where there is less land to go around, the average lot price reached the $200,000 mark last year. The already expensive states of the Pacific coast came in a distant second at $143,000.
In the Mountain states, which in the NAHB study include Arizona, Colorado, and New Mexico, the average lot price was up to $75,000. The lowest prices were seen in the South Atlantic and East South Central, which includes Alabama and Mississippi, coming in at $42,000.
The NAHB study, Single-Family Lot Values Reach Record Highs, notes that the lot prices are “consistent with record lot shortages,” but also influenced by both increased building material costs and supply chain challenges.
In late 2021, the NAHB noted in a survey that 76% of responding home builders said the available supply of developed lots in their areas was either low or very low. That 76% was the highest recorded figure in the category since the association first posted the question to builders some two decades ago.
Looking at the most recent figures, the NAHB report notes that “lot values are now close to the record levels of the housing boom of 2005-2006.” Then, half of the nation’s available lots were on the market for an average asking price of $43,000.
Allowing for inflation since then, that means the average price then was around $57,800.
The latest trends lines are additionally fueled by “home building shifted toward small lots,” resulting in record-high prices per acre.
By Garry Boulard
