Despite new policies designed to boost housing supply, overall land transactions are down nearly 90% compared to three years ago. Many developers remain cautious, held back by rezoning delays, higher carrying costs, and uncertainty in the broader economy.

KEY TAKEAWAYS

• Single-family lots in demand
  These lots remain one of the strongest segments because they allow for four- and six-plex developments without requiring rezoning. This creates a faster route to construction and reduces financial risk.

• Rezoning challenges
  Properties that require multiple years of approvals face significant holding costs — often 8–10% annually once interest, taxes, and fees are factored in.

• Selective buyers
  With more properties on the market, buyers are choosing well-located sites with fewer barriers. Land that is clean, priced appropriately, and ready for development continues to trade.

Joe Varing emphasized that smaller subdivisions and in-fill developments offer the most practical opportunities today. He notes:

“Single-family lots … will offer a much higher return on investment than buying a piece of raw land and taking it through the process, then waiting multiple years to get it approved – if you can get it approved.