A new analysis from the National Association of Home Builders (NAHB) reported that the national median lot value declined in 2025. As the first barrier to building spec homes, the estimated 4% decrease is a positive trend for builders.
While this data varies based on region, the Northeast and West reported record highs and a trend towards smaller lots.
Builder concerns over lot shortages decreased since 2021, when it hit an all-time low.
“According to the May 2025 NAHB/Wells Fargo Housing Market Index (HMI) survey, 64% of builders rated the supply of developed lots as low or very low,” said Natalia Siniavskaia, NAHB assistant vice president for housing policy research. “The more recent June 2026 HMI survey found that lot availability remains uneven across markets, with 42% of respondents rating it as poor and 17% describing it as good.”
