LAND AND LOT SUPPLY: HEALTHIEST LEVEL IN YEARS

—New Home Lot Supply Index Up for the Fourth Consecutive Quarter—

NEWPORT BEACH, Calif., Aug. 12, 2025 /PRNewswire/ -- Zonda's New Home Lot Supply Index (LSI) for 2Q25, showed lot supply loosened both year-over-year and quarter-over-quarter across the United States, notching the fourth consecutive increase from previous quarters.

The index is a residential real estate indicator of the number of single-family vacant developed lots and the rate the lots are absorbed via housing starts. (▶️See the lot development stages)

"The timing of land and lot deliveries is a growing challenge in today's housing market," said Ali Wolf, chief economist for Zonda and NewHomeSoure. "While builders had planned to increase housing starts in 2025, they slowed production as the year progressed due to choppy consumer demand and rising resale supply. This slower pace of construction contributed to the 5-year high in Zonda's LSI, as fewer lots were converted into starts."

• The New Home LSI came in at 68.4 for 2Q25, representing a 20.6% increase from 2Q24. The 2Q25 data shows a "significantly undersupplied" market nationally. The market has been "significantly undersupplied" since 2017.
• On a quarter-over-quarter basis, supply increased by 6.3% from 1Q25.
• The LSI counts the total vacant developed lot supply and adjusts it for overall starts.
• Despite the loosening trend, lot inventory was still categorized as "significantly undersupplied" in most markets in 2Q25.

"The land and lot backdrop reveals a key insight: we don't have a glut of supply, but the market is ready to support more construction once builders feel confident again," said Wolf.

🔑 See full insights and analysis. 

Homebuyers can learn more on NewHomeSource.com:

• 10 U.S. cities drawing the most interest from homebuyers in summer 2025
• Pick the perfect lot for your new home
• What you need to know about lot and construction loans

Join us at upcoming Zonda events including the Mortgage Playbook Webinar, Sept. 9 and Future Place, Oct. 27-29.

About Zonda
Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing. zondahome.com

About NewHomeSource (NHS)
NewHomeSource.com is America's #1 source for consumers as they search for new construction communities and homes. NewHomeSource also has the most extensive collection of ratings and reviews for homebuilders nationwide. As the only independent source of reviews from verified homebuyers, TrustBuilder delivers the honest insights you need to make decisions with confidence. newhomesource.com

For media inquiries or to schedule an interview with Chief Economist Ali Wolf:
Contact: Diane Begin
Email: [email protected]
Phone: 224-836-5615

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