Lack of construction-ready lots 'key factor' in slowing housing recovery

LIVE NOW: Inman Connect San Francisco
Tune-in now to catch the livestream. Don't miss this chance to see real estate leaders tackle the industry's top problems.

The scarcity of affordable lots prepped for construction is part of the puzzle of conditions — along with rising interest rates and tight lending standards — that has slowed the housing recovery, according to the National Association of Homebuilders (NAHB).

In an August survey conducted by NAHB, 58.6 percent of the 341 homebuilders that responded said that the supply of build-ready lots was either “low” or “very low” in their markets. That lack of supply, along with a tempered rise in home prices and an increase in the cost of build-ready lots, is one of the “key factors” stalling the housing recovery, the Wall Street Journal reported.

Source: Wall Street Journal