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America’s housing shortage could shrink by more than 6% if homes were built on the more than 300,000 vacant residential lots currently listed for sale across the U.S., according to research released Tuesday by Zillow Group Inc. The report found 300,242 vacant lots measuring 5 acres or less listed for sale in June, representing 17.4% of all homes and land listed on Zillow. Building one home on each lot would reduce the nation’s estimated housing deficit from 4.7 million homes to roughly 4.44 million, a 6.3% decline. Zillow said the estimate is conservative because the typical lot spans 0.57 acres, making it large enough in many cases to support more than one home. “The more than 300,000 lots currently listed for sale represent the lowest-hanging fruit in addressing a housing shortage that’s two decades in the making,” Kara Ng, senior economist at Zillow, said. “The challenge is making it feasible to build. Loosening zoning rules, streamlining permitting and expanding access to financing would reduce the cost and uncertainty that hold construction back, turning available lots into much-needed homes. The ROAD to Housing Act is an encouraging sign that policymakers understand what it will take to close the gap, but some of this reform will need to happen at the state and local levels,” Ng added. Florida had the largest number of vacant lots listed for sale at 42,601, followed by Texas with 40,907, California with 18,508, North Carolina with 14,226 and Georgia with 10,341. Rural markets accounted for the largest share of vacant lots, with 25.3% of all listings, compared with 13.6% in suburban areas and 9% in urban markets. Rural land was also the least expensive on a per-acre basis. Zillow said closing the housing gap will require more than available land. The company called for modernized zoning rules, faster permitting, expanded financing options and greater use of manufactured homes, which can typically be built more quickly and at lower cost than traditional homes. Zillow is also participating in a 12-week federal technology sprint with the U.S. Census Bureau’s Opportunity Project to explore ways to improve access to small-dollar housing loans for rural buyers interested in building on vacant lots.Untapped Supply
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This article America Has a 4.7 Million Home Shortage, but Zillow Says 300,000 Vacant Lots Sitting for Sale in These States Could Ease the Pain Fast originally appeared on Benzinga.com.
