Lot Values Rise at Record High Rate Nationally

With half as many homes being started before the Recession, a new record has been set for lots for sale.  Not since 2006 has the cost of a lot exceeded its highest amount of $43,000, but in 2015, the average cost of a lot was $45,000, which is a record high for lot sales.  Lot values indicate an appreciation in the investment of real estate nationwide.  It is another positive indication of the recovery of the housing market, and it also allows builders to be able to value the new homes they build at higher prices as well.
One of the reasons for the increase in lot values is that there is actually a shortage of lots for sale according to the National Association of Home Builders (NAHB).  This lot shortage seems to be a nationwide problem as the land is available, but developed lots are scarce.  Thanks to the regulatory costs which are going up at a significant rate, ultimately this translates to a rise in development costs.  The work to develop new lots for sale costs more and thus boosts the cost and value of the lot.


Another factor is that the land that is being purchased for development is trending closer to denser urban areas.  These areas typically have costlier land because of their location and proximity to the city.  Many areas of St. Tammany Parish are located close to shopping, dining, and entertainment hubs – some of which are brand new.  Shopping districts around Covington have increased exponentially in the last 8 years requiring a large amount of road construction, expansion, and renovation in order to handle the increase in drivers and traffic.

Luckily, there have been large tracts of land that were zoned residential or had zoning changes to accommodate residential construction close to Covington.  These new subdivisions and neighborhoods have been built with the distinct advantage of having lots and homes for sale that had easy access to an unusual amount of social and retail locations that would not typically be associated with quiet, country, bedroom community new home communities.  Lot values in the St. Tammany Parish area can be higher than the national average, but they come with amazing community amenities as well as location amenities.  There are many new communities springing up in St. Tammany Parish, and Ron Lee Homes, a custom home builder can design and build new custom homes on your lot or on a lot you purchase.  Contact Ron Lee Homes Today by calling 985-626-7619 or E-mail Info@RonLeeHomes.com.

Click Here for the Source of the Information.

National Lot Size Average Helps Builders and Home Buyers

The number of jobs available in the construction sector have become a positive “negative” for the United States’ real estate market.  Employers are reporting more open positions for construction employees and sub-contractors.  This shortage of workers is actually contributing greatly to the slow completion of new homes for sale on the market.  However, new home sales for single-family detached homes has increased 13% year-over-year, reporting 592,000 homes completed in June, 2016.  Lot size has also started to play a role in the completion of  new homes for builders in an unexpected way. The lack of developed lots has also slowed down new home builders as they are trying to keep up with the demand from new home buyers in the housing market.

However, there is a “silver lining” to the lack of developed lots.  Builders may find that they don’t have to look as hard for lots on which to build because the Census Bureau’s Survey of Construction (SOC) found that new home buyers preferred lots that were less than 8,600 square feet – approximately 1/5-acre lots.  Since an acre is 43,560 square feet, this means that approximately 5 homes could fit comfortably on a space the size of a football field.  This is also good news for first-time home buyers.  The types and sizes of homes that would fit on a 1/5-acre lot would probably fall within the price range of the first-time home buyers.  Most builders paying attention to housing trends build new homes based on buyers’ preferences.  As lot sizes decrease, the availability of affordable housing has the potential to increase.

In Louisiana, the SOC reported that new home buyers buying single-family homes in Louisiana prefer lot sizes that are .16-acre.  This is less than the national trend of 1/5 acre.  Ron Lee Homes in St. Tammany Parish Louisiana can design and build you a completely custom new home either on a lot you already own or on any new lot for sale in the new subdivisions in the West St. Tammany Parish area.  We also have garden home floorplans and smaller square footage floorplans that have been designed and engineered for smaller lots.  New home buyers frequently modify our previously designed floorplans to their specifications in order to have Ron Lee Homes build the home of their dreams.  If you already own your lot or would like to buyer a lot in one of the many neighborhoods throughout the St. Tammany Parish area, Contact Us Today, Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

Click Here and Here for the Sources of the Information.