The tightest market in the country (of the markets Metrostudy tracks) is San Diego, which was one of the markets to nosedive earliest and deepest. There is a 15.5 month supply of developed lots, based upon the last four quarters worth of lot demand. A normal level in that market would be closer to 30-36 months, particularly with that market’s high development hurdles.
The Texas markets figure prominently on this list. Texas has led the way throughout this recovery, with consistently strong demand. Texas didn’t have a bubble in the same way that Arizona and Florida had a bubble, so that state’s housing market didn’t have as much inventory overhang to start out with.
The portions of Maryland that are close to Washington DC are tight, with only a year and a half of supply. Demand is strong in that market, with some submarkets benefiting from the base realignment (BRAC) programs.