The National Association of Home Builders reports that housing builders are becoming increasingly concerned over the limited number of lots available for new development. Restrictive regulations, a shortage of financing for development, stricter zoning laws and buyers’ preference to live in or near cities – where there is very little unused land left – are cited as the prime reasons behind the lot shortage problem.
Economists also say that tighter supplies are increasing the costs to build homes.
It bears watching. Clearly, it is limiting the number of new homes for sale.