As builders seek to meet housing demand, the price of land rises

The housing market continues to be a buzz of activity. This hot market is extending into other connected sectors of the economy as well. Home construction has risen sharply this year, as builders seek to remedy the housing inventory shortage. As a result, the price of undeveloped land has skyrocketed in some of the nation’s hottest housing markets.

Realtor.com recently published a report of the ten metro areas in the United States that have seen the highest increases in the price of land over the last year. A number of geographical and economic factors are at play in different localities, but the general trend is clear enough. The price of undeveloped land, measured in the Realtor.com report in average price-per-square foot, is rising quite dramatically in major metro around the country.

This price of land indicates the amount of activity occurring in the building and real estate sectors, so areas where the price of land is increasing will generally have a very hot housing market. The top ten metro areas listed in the Realtor.com study are mostly located in the South and the Pacific Northwest, with some expectable outliers like L.A. and other ones that are more surprising, such as Syracuse, New York.

The area that has seen the greatest increase is North Port in Sarasota County, Florida. There the price-per-square foot has increased 92% over the last year to a median price of $2.52 per square foot.The population of Florida has experienced tremendous growth of the last decade, which has only been increased by the events of the last year.

Another area that has seen a large influx of people is the Pacific Northwest. Spokane, Washington, Portland, Oregon, and Boise City, Idaho are three of the metros with the greatest increase in cost. With the greater flexibility accorded by remote work, many people have left California and other traditional population centers.

In Portland, the median price-per-square foot rose 72% to a staggering $9.17. This is in part due to highly restrictive zoning laws. Boise City has had quite the boom over the last year, with the median home price 32.4% year over year. As of May, the median price had risen above $500,000.

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