The pandemic housing boom led to unprecedented demand, causing active housing inventory and new build supplies to hit record lows. However, since mid-2022, the housing market has seen increased slack, particularly in some regions of the Sun Belt and Mountain West. The New Home Lot Supply Index reached a high of 68.4 in Q2 2025, reflecting a greater availability of developed lots. Slower production of housing starts and variable consumer demand contributed to this trend, with significant increases in lot supply observed in key metro areas like Tampa, Austin, Nashville, and Charlotte.
The New Home Lot Supply Index climbed to 68.4 in Q2 2025, indicating a greater supply of vacant developed lots than the historic low of 35.8 in Q2 2022.
Zonda's chief economist Ali Wolf noted that while builders wanted to increase housing starts in 2025, they had to slow production due to fluctuations in consumer demand.
The loosened lot supply in major metro areas, tracked over the last year, fell in 22 of the 30 markets, highlighting shifts in housing demand.
Tampa, Austin, Nashville, and Charlotte saw the most significant year-over-year loosening of lot supply, showing market differentiation in recovery from the pandemic housing boom.
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