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New Home Lot Supply Drops To Cycle Lows According To Zonda
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Today, the experts at Zonda, the housing industry’s foremost advisors, released the New Home Lot Supply Index (LSI) for 3Q2020. The New Home LSI, backed by data from Zonda, shows lot supply tightened year-over-year across the United States. The index is a residential real estate indicator based on the number of single-family vacant developed lots and the rate those lots are absorbed.
“Lot inventory reached new lows in the third quarter and unequivocally represents a land sellers’ market,” said Ali Wolf, chief economist at Zonda. “Record low lot supply tells us it won’t be easy to backfill the pipeline in the coming months after the exceptional year for new home sales in 2020.”