Lot values for single-family, detached homes have never been higher. In 2020, prices jumped 18% to a median lot price nationwide of $53,000, according to an analysis of Census Bureau data by the National Association of Home Builders.
The higher prices for lots—along with material costs—have pressed on buyers’ and builders’ budgets in building new homes.
Lots are priciest in the New England area. Half of all single-family detached spec homes started in the region in 2020 had lot values of more than $120,000. “New England is known for strict local zoning regulations that often require very low densities,” Natalia Siniavskaia, the NAHB’s assistant vice president for housing policy research, writes on the association’s Eye on Housing blog.
The Pacific division tends to have the smallest lots in the country but has the second priciest—a median lot value of $103,000 in 2020.
The Mountain division also set a new record high for its lots in 2020. Half of the lots are priced at or above $73,000.