Residential Lot Prices Hit Record High

 

Average price of residential lots in the US.

The National Association of Home Builders reports that Lot values in the West South Central region, which includes Texas, have more than doubled since the last housing boom in 2006-2007.  As of 2018, half of the lots in the West South Central division sold for more than $62,000, 25% above the national median lot value for single-family spec homes of $49,500. This represents a significant jump in the division lot values since the building boom when more than half of lots were priced under $30,000 in the West South Central region.

As home builders seek to deliver starter homes which is where the majority of the demand is for new homes, higher construction costs and increased lot costs make that effort more challenging.  More home builders are beginning to tip their toes into the starter home market because that is simply where the sustainable new home demand resides.

To read the complete NAHB article, visit Lot Values Hit Record Highs.

 

 

 

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