Lot Values Rise at Record High Rate Nationally
With half as many homes being started before the Recession, a new record has been set for lots for sale. Not since 2006 has the cost of a lot exceeded its highest amount of $43,000, but in 2015, the average cost of a lot was $45,000, which is a record high for lot sales. Lot values indicate an appreciation in the investment of real estate nationwide. It is another positive indication of the recovery of the housing market, and it also allows builders to be able to value the new homes they build at higher prices as well.
One of the reasons for the increase in lot values is that there is actually a shortage of lots for sale according to the
National Association of Home Builders (NAHB). This lot shortage seems to be a nationwide problem as the land is available, but developed lots are scarce. Thanks to the regulatory costs which are going up at a significant rate, ultimately this translates to a rise in development costs. The work to develop new lots for sale costs more and thus boosts the cost and value of the lot.
Another factor is that the land that is being purchased for development is trending closer to denser urban areas. These areas typically have costlier land because of their location and proximity to the city. Many areas of St. Tammany Parish are located close to shopping, dining, and entertainment hubs – some of which are brand new. Shopping districts around Covington have increased exponentially in the last 8 years requiring a large amount of road construction, expansion, and renovation in order to handle the increase in drivers and traffic.
Luckily, there have been large tracts of land that were zoned residential or had zoning changes to accommodate residential construction close to Covington. These new subdivisions and neighborhoods have been built with the distinct advantage of having lots and homes for sale that had easy access to an unusual amount of social and retail locations that would not typically be associated with quiet, country, bedroom community new home communities. Lot values in the St. Tammany Parish area can be higher than the national average, but they come with amazing community amenities as well as location amenities. There are many new communities springing up in St. Tammany Parish, and Ron Lee Homes, a custom home builder can design and build new custom homes on your lot or on a lot you purchase. Contact Ron Lee Homes Today by calling 985-626-7619 or E-mail [email protected].
