Many shortages have eased since the end of the pandemic—lumber, windows, appliances. And now building lots can be counted in that category. According to the May 2023 survey for the NAHB Wells Fargo Housing Market Index, 67% of single-family home builders described the supply of lots as either "low" or "very low." More or 47% of these builders put the number of lots in the low category while the remaining 25% said it was "very low."  

Though the total majority still finds some shortages, what's good about the most recent results is that they are down from a big 76%, the last time the National Association of Home Builders conducted the survey in September 2021. On the other hand, it's important to understand that the latest numbers represent the second highest incidence of lot shortages on record since NAHB began collecting such data in 1997. Moreover, the survey found that the current 67% of buildings reporting a shortage is high relative to the current level of production. 

To put the shortage of lots into context, the survey looked at it versus housing starts and production. Over the last six months, total housing starts have hovered at an annual rate of 1.4 million. Eighteen years ago, in 2005, total housing starts peaked at 2 million and 53% of builders reported lot shortages, so shortages are hardly a new phenomenon.