New Home Lot Supply Index Slide 11.6% in 55.1 in Q4 2020
Costa Mesa, CA, February 22, 2021-Zonda’s New Home Lot Supply Index slid to 55.1 in Q4 2020.
This represents a 20.4% drop year over year and an 11.6% drop from Q3.
“The housing market is firing on all cylinders, from engaged shoppers to nearly 15-year highs for home sales and a hot land market. Lot inventory tells us about supply and demand dynamics and today, there is a sellers' market. Land is one of the hottest commodities around, says Ali Wolf, chief economist.
* The markets that tightened the most on a year-over-year basis in 4Q20 were Baltimore, Maryland; San Diego, California; and Nashville, Tennessee.
* Baltimore’s tight inventory is due to some growth moratoriums and select parts of the market that are getting close to buildout.
* Lot demand is strong in San Diego and builders would build far more homes if the land allowed it, but the geographic barriers pose challenges.
* Nashville’s housing market thrived throughout 2020 and early-2021 as the pandemic caused many to re-evaluate where they lived. Builders are enjoying the heightened demand but topography issues are part of the reason there aren’t more lots available.
* Jacksonville, Florida; Raleigh, North Carolina; and Atlanta, Georgia are the top markets for new home sales, according to our New Home Pending Sales Index. In the same markets, the New Home LSI captures a 12%, 28%, and 28%, respectively, drop in finished lots.