Zillow has identified more than 300,000 empty lots for sale across the United States as a significant opportunity to address the nation's ongoing housing shortage, according to new research released by the real estate company. As of June, 300,242 empty lots of five acres or fewer were listed for sale on Zillow, representing 17.4% of all for-sale listings [1]. If a single home were built on each of these lots, the national housing deficit could be reduced from 4.7 million homes to approximately 4.44 million, a 6.3% decrease, according to Zillow's estimates. The company notes that many of these parcels may be large enough to support more than one home, making their estimate conservative [1].
The typical lot for sale is 0.57 acres with a median price of $79,000 [1]. Rural markets have the highest concentration of empty lots, accounting for 25.3% of listings, compared to 13.6% in suburban areas and 9% in urban markets. Rural lots are also the least expensive, with a median price of about $75,000 per acre, while suburban and urban lots are priced at over $181,000 and approximately $500,000 per acre, respectively [1].
Florida leads the nation with 42,601 empty lots for sale, followed by Texas (40,907), California (18,508), North Carolina (14,226), and Georgia (10,334). The largest share of empty lots as a percentage of total listings is found in North Dakota (45.9%), South Dakota (38.7%), and Alaska (34.6%) [1].
Zillow Senior Economist Kara Ng emphasized that these lots represent the "lowest-hanging fruit" for addressing a housing shortage that has been building for two decades. Ng suggested that loosening zoning rules, streamlining permitting, and expanding access to financing could help reduce the cost and uncertainty associated with new construction. Additionally, Zillow highlighted the potential of manufactured homes, which can be built faster and at lower cost than traditional site-built homes, as another solution to the shortage. The company is also participating in a 12-week federal technology initiative with the U.S. Census Bureau’s Opportunity Project, aimed at increasing access to small-dollar housing loans in rural communities and reducing barriers for buyers interested in purchasing and building on empty lots [1].
CONCLUSION
Zillow's research points to the substantial potential of over 300,000 empty lots to help alleviate the U.S. housing shortage, particularly in rural areas where land is more affordable. Policy changes and expanded financing options, along with increased use of manufactured homes, could further unlock this opportunity and reduce the national housing deficit [1].