The shortage of lots that has been hindering the housing recovery eased somewhat in 2019, but remains elevated by historical standards, according to a recent survey conducted by the National Association of Home Builders (NAHB). The survey consisted of a set of special questions included on the instrument for the September 2019 NAHB/Wells Fargo Housing Market Index (HMI).
The survey asked a panel of single-family builders, stratified by number of homes started and region of the country, to categorize the supply of lots in their market areas as “very high,” “high,” “normal,” “low,” or “very low,” as well as giving them an option to say they didn’t know or were not sure. In response, 58% of builders said the supply of lots was low (40%) or very low (18%). This is down somewhat from the all-time peak of 65% in September of 2018, but higher than it had been at any time prior to 2013 (NAHB has been asking the same lot supply questions on its HMI survey periodically since 1997).
See more at NAHB’s Eye on Housing blog.