New Home Lot Supply Index for select markets

Lot inventory in nearly every top market is currently considered seriously undersupplied.

• The markets that tightened the most on a year-over-year basis in 4Q20 were Baltimore, San Diego, and Nashville.
• 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, Raleigh, and Atlanta 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.

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