U.S. homebuilders are seeing lot supply rebound sharply after the pandemic-era housing boom drained inventories to historic lows, Fast Company writes.
New data from Zonda show the New Home Lot Supply Index climbed to 81.6 in the fourth quarter of 2025, signaling a much looser market as builders pulled back on new starts amid slower sales. Lot supply rose in 28 of the 30 major metro areas tracked, with Sun Belt markets showing some of the biggest shifts.
Austin and Denver now stand out as “significantly oversupplied,” a notable reversal from just a year ago, when no major markets carried that designation.
While roughly half of large metros remain undersupplied, the balance is clearly changing as consumer demand cools under pressure from high interest rates, affordability challenges, and broader economic uncertainty.
The growing inventory of buildable lots could ease future construction constraints but also reflects the cautious stance builders are taking in response to a softer housing market.
Read the full story from Fast Company.
