NAHB Insight: Housing Lot Supply Survey
The National Association of Home Builders (NAHB) found that the housing lot supply is one of the more pressing challenges facing homebuilders. According to the NAHB/Wells Fargo Housing Market Index (HMI) survey, 67% of respondents reported feeling that the supply of lots is low. This figure is split by 38% relaying the supply as “low” and an additional 26% said it was “very low.” This statistic comes at the highest ever reported since NAHB first began tracking the number in 1997.
While the current housing lot supply may not be favorable to many homebuilders, there are still many signs that the market overall is becoming more favorable. From reports on the housing market steadying and expectations of leveling housing costs, builders are extremely resilient and will succeed despite headwinds.
“In addition to overall lot supply, the HMI survey asks builders to rate the supply of A, B and C lots individually. Not surprisingly, shortages tend to be most acute among lots in the most desirable, or “A,” locations. In the May 2025 survey, 67% of builders said that the supply of “A” lots was low or very low, compared to 62% for “B” lots and 52% for “C” lots. None of these percentages were drastically different than they had been in 2024.” Reported economists at NAHB.
