Developed home lots hit 96-month supply in Treasure Valley 

As new construction has slowed to bring new-home inventory into a good supply-demand balance, the number of developed lots has skyrocketed in the Treasure Valley.

Eric Allen, director of the Utah/Idaho region for national housing market research firm Metrostudy, said in a report the “very rapid pace” at which lot inventory has increased leaves the valley with enough developed lots to fill 96 months of demand for detached homes. That’s based on the current rate of absorption.

A healthy supply historically consists of 12 to 18 months-worth of developed lots.

At the same time, Allen said the inventory of built homes has reached a balanced level in the Treasure Valley, with 1,368 homes making up a 6.3-month supply as of March. That’s down from the 7.3-month supply of March 2008.

Homes in the $150,000 to $200,000 range make up a more substantial portion of inventory than they did previously.

“A return to affordability has been a healthy and necessary result of the housing downturn, as prices have fallen in markets across the country,” Allen said.

NEW! Online only subscription. 24/7 access to premium online subscriber content for only $79.00 a year!
CLICK HERE TO SIGN UP TODAY!

Comments are closed.