Five years ago, housing’s story was one of excess. Today, it is about shortages.
The tightest market in the country (of the markets Metrostudy tracks) is San Diego, which was one of the markets to nosedive earliest and deepest. There is a 15.5 month supply of developed lots, based upon the last four quarters worth of lot demand. A normal level in that market would be closer to 30-36 months, particularly with that market’s high development hurdles.
The Texas markets figure prominently on this list. Texas has led the way throughout this recovery, with consistently strong demand. Texas didn’t have a bubble in the same way that Arizona and Florida had a bubble, so that state’s housing market didn’t have as much inventory overhang to start out with.
The portions of Maryland that are close to Washington DC are tight, with only a year and a half of supply. Demand is strong in that market, with some submarkets benefiting from the base realignment (BRAC) programs.
Published August 28, 2013 | Builder Online