Economics

Lot Values Outpace Inflation and Hit Record High

Nov. 12, 2019

The West South Central division is the comeback kid. The West South Central division doubled its lot values from peak housing boom levels to exceed the national averagedespite being the lowest in the nation before 2013. Nationally, rising lot values also hit a record high, outpacing inflation and defying the trends of smaller lot sizes and slowed home production.

According to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC) data, median single-family lot prices outpaced inflation once again (4.4% vs 2.4%) and reached new record high in 2018, with half of the lots selling at or above $49,500. The most dramatic rise in lot values is observed in the West South Central division where median lot values more than doubled since the housing boom years.

While this constitutes a new nominal national record, lot values adjusted for inflation have not reached the housing boom peak levels. In the midst of the building boom – when twice as many single-family homes were started – half of the lots were going for over $43,000, which is over $53,000 when converted in $2018.

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