Zillow Highlights Vast Inventory of Vacant Lots as Potential Supply Solution
Zillow Highlights Vast Inventory of Vacant Lots as Potential Supply Solution
Zillow Group, Inc. has released a new analysis suggesting that a vast inventory of vacant, for-sale lots across the United States could serve as a critical resource for addressing the ongoing housing shortage. According to the real estate giant, hundreds of thousands of these empty lots currently sit idle on the market, presenting an immediate opportunity for new development without the need to rezone other land types.
The utilization of these existing parcels could streamline the construction process, as they are often already serviced by necessary infrastructure or located in established areas. By focusing development efforts on these available plots, the industry could potentially increase the pace of new home construction more rapidly than waiting for new subdivisions to be approved and built from scratch.
The shortage of housing inventory has been a persistent challenge in the U.S. market, driving up prices and creating competition among buyers. While construction efforts have ramped up in recent years, various constraints, including labor shortages and supply chain issues, have slowed the recovery of inventory levels to pre-pandemic norms. Identifying “shovel-ready” land is increasingly viewed as a vital step in closing the gap between supply and demand.
Shares of Zillow were trading lower by 1.19% at the time of the report. As a company deeply integrated in the housing ecosystem through its internet real estate marketplace, Zillow’s data provides a macroeconomic view of supply constraints that affect homebuilders, buyers, and investors alike.
What to watch
- Future Zillow reports regarding the rate of new construction starts on existing vacant lots.
- Market data tracking the absorption rate of available land inventory versus finished homes.
- Trends in zoning regulations that might encourage development on these specific vacant parcels.
Source: original release