NAHB’s measure of lot shortages hit a new record in May. In answer to special questions on the survey for the NAHB/Wells Fargo Housing Market Index, 64 percent of builders reported that the supply of lots in their markets was low or very low—up from 62 percent last year and the highest the lot shortage percentage has been since NAHB began collecting the information in 1997.
Perhaps most notable is that builders reported this record shortage at a time when new homes are being started at a rate of under 1.2 million a year. in 2005, when total housing starts were over 2.0 million, the share of builders reporting a shortage of lots was “only” 53 per cent.
