A shortage of buildable lots, especially in the most desirable locations, has emerged as one of the key factors holding back a more robust housing recovery, according to the latest survey on the topic conducted by the National Association of Home Builders (NAHB).
“In our August 2013 survey, 59 percent of builders reported that the supply of buildable lots in their markets was low or very low–up from 43 percent September of last year, and the largest low supply percentage we’ve seen since we began conducting these surveys in 1997,” NAHB chief economist David Crowe stated in a press release. “One reason is that many residential developers left the industry, abandoned certain markets or simply stopped buying land and developing lots during the downturn.”
The 59 percent includes 39 percent who characterized the supply of buildable lots simply as “low” and 20 percent who said the supply of lots was “very low.” Another 22 percent said the supply of lots was “normal,” 10 percent said it was “high” and four percent said “very high.” Six percent said they didn’t know or weren’t sure.
SouthGate Companies of Iowa City is currently building new streets and neighborhoods in several areas of Iowa City and Coralville. On the east side of Iowa City, SouthGate is paving sections of two streets in the Lindemann neighborhood on Lindemann Drive and Jeremy Court. On the west side of Iowa City near the Coralville border, SouthGate has just completed paving Eagle Place, which is the newest section of the popular Cardinal Ridge subdivision. Currently, SouthGate is only offering these lots to clients that are building with SouthGate Homes. They may offer the lots for sale at a future date.
SouthGate is also master planning future developments along Camp Cardinal Boulevard in Iowa City and Coralville, as well as Sandhill Estates on the south side of Iowa City.