Press Contact

Valerie Sheets
vsheets@zondahome.com

Products

New Home LSI: New home lot inventory reaches new low

May 12, 2021

The New Home Lot Supply Index (LSI) hit a new low in 1Q21. The LSI dropped 24.2% year-over-year as builders are buying finished vacant lots as quickly as they are available to help meet today’s homebuying demand.  

New Home Lot Supply Index for select markets

  • Lot inventory in all the top markets remain “significantly undersupplied.”
  • The markets that tightened the most on a year-over-year basis in 1Q21 were Los Angeles, San Francisco, and Baltimore. With the increased interest in for-sale product, particularly in a suburban setting, builders in these markets have been quickly securing as many lots as they can. Topography issues and NIMBY puts a cap on lot development, though.
  • Los Angeles, San Diego, and Baltimore are the tightest for lot supply among major markets.

“The silver lining in today’s extreme lot shortage is that it should be short lived,” says Wolf. “Builders have been aggressively buying land in different stages of development, and many of these lots will turn into homes for sale in the coming year or two.”

Ali Wolf, Chief Economist at Zonda Economics


Methodology

The Zonda New Home Lot Supply Index (LSI) is built on proprietary, industry-leading data that covers the production new home market across the United States. The index values represent single-family vacant developed lot supply, lots that are ready to be built on, relative to equilibrium. Released quarterly, the New Home LSI provides an unrivaled look into the lot markets across the country, offering a current quarter snapshot as well as insight into the directional trend.

The New Home LSI is calculated based on each markets’ specific equilibrium as determined by our team of local experts and historical activity. The comparative current value is adjusted to capture the “true” months of supply figure by applying a greater weight to vacant developed lots in subdivisions with more starts activity. Each index value is associated with a phrase highlighting the current lot supply dynamics. A value of 100, represents perfect equilibrium, while a value of 125 and above equals “Significantly Oversupplied”, 115-125 – “Slightly Oversupplied”, 85-115 – “Appropriately Supply”, 75-85 – “Slightly Undersupplied”, and 75 and below – “Significantly Undersupplied.”

The foundation of the index is a quarterly release conducted by Zonda. It is necessary to monitor residential lot supply to understand how new home markets may be impacted by the incoming pipeline.

 

Ali Wolf

Chief Economist

Ali Wolf

Chief Economist

Recent news

Services Information Request

You’re on your way to meeting our team! We’ll be in touch soon to help push your business forward.

By clicking this button, you agree to our
Terms & Privacy Policy

Tech Services Sign Up

You’re on your way to meeting our team! We’ll be in touch soon to help push your business forward.

By clicking this button, you agree to our
Terms & Privacy Policy

BP Research Perspective

Complete the form and a member of our team will reach out to you

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with Builder

Please complete and submit the form below to access our rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with MFE

Please complete the form below to access the Multifamily Executive rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with AHF

Please complete the form below to access the Affordable Housing Finance rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with JLC

Please complete the form below to access the Journal of Light Construction rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with Architect

Please complete and submit the form below to access our rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with PSN

Please complete the form below to access the Pool and Spa News rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with AI

Please complete the form below to access the Aquatics International rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with ProSales

Please complete the form below to access the ProSales rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Work together with Remodeling

Please complete the form below to access the Remodeling rate card.

By clicking this button, you agree to our
Terms & Privacy Policy

Get your free listing

Sign up today to secure your free listing on Livabl.com and to learn more about Zonda’s newest listing platform.

By clicking this button, you agree to our
Terms & Privacy Policy
By clicking this button, you agree to our
Terms & Privacy Policy

Don't miss an update

Sign up for our newsletter to get timely housing market information, event and webinar updates, and product updates.

By clicking this button, you agree to our
Terms & Privacy Policy

Discover how Zonda can help grow your business

Complete the form below and a Zonda rep in your region will contact you with more information

By clicking this button, you agree to our
Terms & Privacy Policy
By clicking this button, you agree to our
Terms & Privacy Policy

Demo Zonda MortgagePro

Complete the form below and a member of our team will reach out to schedule a demo.

By clicking this button, you agree to our
Terms & Privacy Policy

Zonda Satellite

Request a demo to see how satellite imagery and AI can track the progress of land and construction

By clicking this button, you agree to our
Terms & Privacy Policy

Zonda Virtual

Complete the form and a team member will contact you to schedule a demo of our digital solutions

By clicking this button, you agree to our
Terms & Privacy Policy

Frame Information Request

We’ll be in touch soon to help push your business forward.

By clicking this button, you agree to our
Terms & Privacy Policy

BuildingProductPro

Complete the form and a member of our team will reach out to schedule a demo

By clicking this button, you agree to our
Terms & Privacy Policy

BP Research Perspective

Complete the form and a member of our team will reach out to you

By clicking this button, you agree to our
Terms & Privacy Policy

Residential Remodeling Index

Complete the form and a member of our team will reach out to schedule a demo

By clicking this button, you agree to our
Terms & Privacy Policy
By clicking this button, you agree to our
Terms & Privacy Policy