U.S. Land Inventory Shrinks 24% as Development Boom Exhausts Supply

A new Realtor.com report reveals a 23.6% drop in land listings since 2019, with median prices per acre soaring 76.6% due to the 2020-2022 development boom.

By: AXL Media

Published: Apr 22, 2026, 4:37 AM EDT

Source: Bisnow

Regional Price Surges and Market Disconnect

The rise in land costs has not been uniform across the country, with the Northeast and Midwest experiencing the most aggressive inflation. Land prices in the Northeast have spiked by 101% since 2019, while the Midwest followed closely with an 89% increase. Interestingly, while home inventory has begun to recover increasing 20% year-over-year land inventory remains stagnant. This disconnect stems from the fact that once a parcel is developed into housing, that specific inventory is permanently removed from the land market, creating a persistent "dent" in the supply of raw acreage.

Raw Land vs. Shovel-Ready Sites

The report highlights a significant pricing disparity between raw, undeveloped land and building-ready sites.

Raw Land: Prices have surged by 86.5% per acre since 2019. This higher percentage increase is attributed to a lower starting price point and the speculative nature of its future development potential.

Building-Ready Sites: Pricing for sites that are already prepared for construction has risen by a more moderate 53%.