NEWPORT BEACH, Calif., Feb. 12, 2025 /PRNewswire/ -- The New Home Lot Supply Index (LSI – single-family vacant developed lots reflecting rate absorption via housing starts) for 4Q24 loosened quarter-over-quarter for the second quarter, while lot supply tightened year-over-year.

"Land and lot supply is at the healthiest levels we've seen in years," said Ali Wolf, chief economist with Zonda. "Between 2021 and 2022, builders expressed concerns about a potential shortage of buildable lots due to rapid demand growth. However, lot supply surged in late 2022 and early 2023 as consumer demand softened while lot development continued. Currently, the market is characterized by steady growth in both lot supply and new housing starts."

• The LSI came in at 60.8 for 4Q24, representing a 1.7% decrease from 4Q23. The 4Q24 data shows a "significantly undersupplied" market nationally, which has been the case since 2017.
• On a quarter-over-quarter basis, supply increased by 5.4% from 3Q24.

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