Buildable-lot shortage a growing problem

For many families, selecting and navigating a move into a new home is the fulfillment of a dream. But for others, moving into their dream home would mean a house designed specifically for them, custom built on their own lot. This latter group is now facing a growing problem — a shortage of desirable lots to build their custom-designed home.

Finding suitable lots remains a top concern among builders. Sixty-two percent of builders reported that the overall supply of developed lots in their areas was low to very low, according to a survey conducted this month by the National Association of Home Builders.

That marks the largest percentage of builders who have called lot shortages a severe problem since NAHB began tracking it in 1997.

The problem has grown in recent years. In September 2012, the percentage of builders who called lot shortages a problem was at 43 percent — compared to 62 percent today.

“The continued low supply of developed lots is a hindrance to the housing recovery that is still quite modest by most standards,” according to a post on NAHB’s Eye on Housing blog as reported by the National Association of Realtors. “A shortage of buildable lots, especially in the most desirable locations translates into higher prices, as 38 percent of home builders said the price of developed ‘A’ lots was somewhat higher than it was a year ago, and 32 percent said the price was substantially higher.”

Q: Where are property taxes the highest?

A: The Northeast and Midwest, in general, have the highest property tax burdens when compared to the West and Southwest, according to a new analysis by the Lincoln Institute of Land Policy.

The agency recently released its annual 50-state property tax comparison study, an analysis of effective property tax rates in each state.

“The property tax remains the foundation of sound municipal fiscal health,” said George W. McCarthy, president of the Lincoln Institute.

Homeowners in Bridgeport, Connecticut, are paying the highest property taxes on homes worth $150,000 to $300,000, followed by Detroit; Aurora, Illinois; Newark, New Jersey; and Milwaukee.

On the other hand, cities with the lowest effective residential property tax rates are in Denver; Birmingham, Alabama; Washington, D.C.; Honolulu; and Boston.