Planning + Development

Lot Values Reached Record Highs in 2021

Lot values for single-family detached housing starts surged to new highs across the majority of Census divisions in 2021
Sept. 13, 2022

After rising steadily throughout 2021, the U.S. median lot price for single-family detached housing starts stands at $55,000, reaching a new record in six out of nine Census divisions, NAHB Eye on Housing reports. In New England and Pacific, lot values surged 67% and 39%, respectively, to reach historic highs as a result of record lot shortages, building material price hikes, and relentless supply chain challenges.

New England saw the most substantial growth in 2021 when its median lot price reached $200,000, almost quadrupling the national median. Despite having the smallest lots, the Pacific division also saw its median lot price rise significantly to $143,000 in 2021, the second most expensive value in the nation.

When adjusted for inflation, lot values are now close to the record levels of the housing boom of 2005-2006 when half of lots were valued over $43,000, which is equivalent to about $57,800 when converted into inflation-adjusted 2021 dollars. At the same time, home building shifted towards smaller lots, resulting in record high prices per acre.

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