One-fourth of new single-family detached homes were built on infill lots or were constructed after teardowns, according to the latest Annual Builder Practices Survey, which the National Association of Home Builders highlighted in a recent post.
Homes built on infill lots constituted 18.6% of new homes, while homes built after tearing down an existing building constituted 6.4% of new homes. Another way of stating it was that one in four new single-family detached homes were built in established neighborhoods in 2020.
The lack of developable land is likely to boost infill development and helps explain its relatively high market share. Given the record high lot shortages reported by the September 2021 survey for NAHB/Wells Fargo Home Market Index (HMI), new homes built on infill lots will likely command a growing share.
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