Lot values for single-family detached housing starts in 2021 increased across the United States to a median price of $55,000, according to an NAHB analysis of the Census Bureau’s Survey of Construction data. When adjusted for inflation, lot values are close to the record levels of the housing boom of 2005-2006, the NAHB says. While lot prices have increased, home building has also shifted toward smaller lots, resulting in record high prices per acre.
In New England and Pacific, lot values surged 67% and 39%, respectively, and reached new historic highs, even after adjustments for inflation. As a result, half of single family detached homes started in New England were built on lots valued at or more than $200,000. Though these new lot values seem sky high, these are consistent with record lot shortages, recent significant building material price hikes and unprecedented supply challenges that have been constraining the pandemic-fueled housing boom in 2021.
The Pacific division has the smallest lots. However, median lot value reached $143,000 in 2021, the second most expensive value in the nation and a new record for the division, even after adjusting for inflation. As a result, Pacific division lots stand out for being most expensive in the nation in terms of per acre costs.
Similarly, the Middle Atlantic division recorded a strong rise in lot values and set a new record with half of lots priced at or above $90,000. This made the Middle Atlantic division SFD lots third most expensive in the US. The Mountain division followed with a median lot price of $75,000, a new divisional record.
