Lot Values for Single-Family Detached Homes Built in 2020 Reached New Record High Levels

According to the latest Census Bureau’s Survey of Construction (SOC) data, with analysis provided by the National Association of Home Builders (NAHB), lot values for single-family detached homes started in 2020 surged 18%. This resulted in the median lot price reaching a new record high of $53,000. The survey is limited to speculatively built homes only and does not include custom built homes. The NAHB concludes that while the 18% jump in lot values is unprecedented, it is consistent with other building material price hikes and coincides with other supply challenges that have been constraining the pandemic-fueled housing boom. Even when adjusted for inflation, lot values are now approaching the record levels of the housing boom of 2005–2006 when half of lots were going for over $43,000, which is equivalent to about $55,000 when converted into inflation-adjusted 2020 dollars. The New England region led the way with the highest lot prices, but the Mountain region was quickly catching up. The Pacific region has the smallest lot sizes. On the other side of the spectrum are the South–East South Central and South Atlantic, where most of the lots sold significantly below the national median.