NEWPORT BEACH, Calif.— A fresh report from Zonda, a housing market research firm, reveals that the supply of single-family lots across the United States continued to loosen in the first quarter of 2025, marking the third consecutive quarterly increase and reaching the highest level in five years.
According to Zonda’s New Home Lot Supply Index (LSI), the index rose to 64.3 in Q1 2025, representing a 12.1% increase year-over-year and a 5.7% gain from the previous quarter. Despite the upward trend, the market remains “significantly undersupplied,” a designation it has held since 2017.
The LSI is a key indicator that measures the availability of vacant developed lots in relation to new housing starts—a critical gauge for builders, developers, and policymakers watching the supply-demand balance in residential real estate.
“Today’s housing market is shaped by the intersection of politics, economics, affordability, and consumer sentiment,” said Ali Wolf, chief economist for Zonda and NewHomeSource. “The resulting impact is a choppy market, and mixed messages on the lot supply front. Zonda’s LSI in the first quarter came in at the highest level in five years thanks to slower housing starts and more cautious consumers, but remained significantly undersupplied.”
Wolf highlighted that while the market is still tight, progress is being made. The increase in available lots is partially attributed to slower construction activity and more hesitant buyer behavior, both of which have extended the shelf life of available lots.
Upcoming lot supply, which tracks lots projected for delivery in the next 12 to 18 months, also showed positive growth. Compared to Q1 2024, upcoming lots rose 4.7%, and were up 6.5% from the previous quarter. Perhaps more notably, upcoming lot inventory is now 26.3% higher than in Q1 2019, signaling that recent land development investments are beginning to yield results.
“There has been a lot of money invested in land and lot development in recent years, and we are seeing the fruit of that labor show up in total upcoming lots,” Wolf added. “The big question now is how aggressive builders will be in the shifting market with housing starts, new community openings, and their land acquisition plans.”
As the real estate sector navigates ongoing uncertainties in affordability and demand, Zonda’s data will continue to play a central role in helping industry stakeholders adapt their strategies.
For more detailed analysis and market insights, visit Zonda’s website. The company will also be sharing more updates at its upcoming events, including Future Place (October 27–29) and the Multifamily Executive Conference (November 4–6).
Zonda is a premier provider of housing market data and solutions, serving builders, developers, mortgage professionals, and multifamily executives.
