The untapped opportunity that could help close America’s housing shortage - Fox Business

What the report says

Fox Business reported that new Zillow research identified 300,242 vacant lots of five acres or less listed for sale on its platform in June, suggesting a potential near-term source of land for new housing. Zillow said those parcels represented 17.4% of all listings for sale and could help ease the country’s housing shortage if developed.

According to the report, Zillow estimates the U.S. housing deficit at 4.7 million homes. If one home were built on each listed lot, that gap would fall to roughly 4.44 million homes, or about 6.3% less. Zillow described the estimate as conservative because some parcels may be able to accommodate more than one home. The typical lot measured 0.57 acres and had a median listing price of $79,000.

Florida had the largest number of empty lots for sale, followed by Texas, California, North Carolina and Georgia. As a share of all listings, vacant lots were most prominent in North Dakota, South Dakota and Alaska. Zillow also found that rural markets had a higher concentration of lots than suburban or urban markets, and rural land was substantially cheaper per acre than land in denser areas.

The findings matter because land availability, zoning rules, permitting timelines and financing constraints all affect how quickly housing supply can grow. Fox Business reported that Zillow’s senior economist Kara Ng pointed to zoning flexibility, faster approvals and better access to construction financing as ways to reduce barriers. Zillow also said manufactured homes and small-dollar housing loans in rural areas could be part of the response.