More Lots, Lower Prices: Why Austin, Dallas, and Atlanta Stand Out for Homebuyers

Long before a newly built house hits the market for sale, it’s an empty lot waiting to be sold. The more lots available in a market, the less expensive the lot. And the less expensive the lot… the less expensive the house.

So where should you be looking if you’re hoping to shave a little bit off your new home’s final price? Three markets standout, according to new research from Zonda. Two are in Texas – Austin and Dallas. The other is Atlanta, Georgia.

All three markets are listed as being “appropriately supplied,” meaning there are enough lots to meet demand without driving prices higher.

Zonda found that lot supply generally increased across the country over the last little while, though most markets are still undersupplied. Indeed, the market has been undersupplied since 2017. While it’s not the only thing contributing to the affordability crisis, every dollar counts.

“Land and lot supply is at the healthiest levels we’ve seen in years,” said Ali Wolf, chief economist with Zonda. “Between 2021 and 2022, builders expressed concerns about a potential shortage of buildable lots due to rapid demand growth. However, lot supply surged in late 2022 and early 2023 as consumer demand softened while lot development continued. The market is characterized by steady growth in both lot supply and new housing starts.”

The tightest markets? Look south to Miami, San Diego and Los Angeles.

The markets where land supply loosened the most on a year-over-year basis were led by Orlando, San Francisco, and Nashville.

"Total upcoming lots provide valuable insights into the trajectory of the land and lot markets over the next year, and the outlook is positive," said Wolf. "Now, all eyes are on housing starts. Assuming consumers can navigate the current environment of persistently high interest rates, we anticipate modest growth in single-family starts during 2025.”

New Home Lot Supply Index by Market