The median price for a high-end lot in the U.S. was $635,000 in the first half of this year, according to Realtor.com data. Beverly Hills, CA, Southampton, NY, and downtown neighborhoods in Miami and Chicago saw the greatest jumps in luxury land prices.
Realtor.com has also recorded an 8.7% jump in luxury lots for the first half of 2016, compared with the same period last year. The price jump can be accorded to a shortage of vacant lots in prime locations, according to a survey by the National Association of Home Builders. This low land supply is tied to the tightening of restrictions on acquisition, development, and construction in the aftermath of the 2007 real-estate collapse.
“The legacy of the Great Recession was that banks weren’t lending,” says Robert Dietz, NAHB’s chief economist.