For the fourth consecutive quarter, new lot supply inventory has increased, but data from Zonda still reflects a ‘significantly undersupplied’ market nationally

Zonda’s New Home Lot Supply Index (LSI) increased 77% from the second quarter of 2022, coming in at 63.4 and now back to mid- to late 2020 levels. On a quarter-over-quarter basis, supply increased by 7.3% from the first quarter of 2023.

Despite the increase on both a year-over-year and quarterly basis, the second quarter data still reflects a “significantly undersupplied” market nationally, according to Zonda.