Not for Sale: The Best Land in America

The pace of U.S. home construction hasn’t picked up much from a year ago. One reason, says Capital Economics property economist Matthew Pointon, is a shortage of land—not that enough land isn’t available, but rather that builders are having a tough time finding prime land at prices they’re willing to pay.

Residential starts increased 2.1 percent in July, from the prior month, for an annualized rate of 1.2 million. A year ago, starts were at a 1.1 million annualized rate. A survey by the National Association of Home Builders (NAHB) in May found that 64 percent of homebuilders reported the supply of lots in their markets was low or very low—the highest percentage of reported lot shortages since the data were first collected in 1997.