300,000+ Zillow Lots Could Shrink Housing Shortage

Over 300,000 vacant lots listed for sale on Zillow in June 2026 represent a significant opportunity to address the U.S. housing shortage, which Zillow estimates at 4.7 million homes. Developing a single home on each of these lots, measuring 5 acres or less, could reduce this deficit by approximately 6.3%, bringing the shortage down to about 4.44 million units. These empty lots constitute 17.4% of all properties listed on Zillow, with the typical lot size being 0.57 acres, often sufficient for multiple dwellings under relaxed zoning regulations. This suggests the 6.3% impact estimate may be conservative.

The distribution of these buildable lots is geographically uneven, presenting varying opportunities for developers. Florida leads with 42,601 lots, followed by Texas with 40,907, and California with 18,508. North Carolina and Georgia also show substantial numbers. States like North Dakota, South Dakota, and Alaska have the highest proportion of lots relative to other property types in their listings. Rural markets exhibit the highest concentration of lots, making up 25.3% of for-sale listings, compared to 13.6% in suburban areas and 9% in urban centers.

Land prices vary considerably by location, influencing the feasibility of development for smaller builders. The median price per acre for rural lots is around $75,000, while suburban lots command over $181,000 per acre, and urban lots reach approximately $500,000 per acre. Nationally, the median listed lot price is $79,000 for a 0.57-acre parcel. Kara Ng, a senior economist at Zillow, described these lots as "low-hanging fruit" for tackling the two-decade-old housing deficit. However, she noted that current regulations and cost structures prevent development on many of these parcels, indicating that policy and financing hurdles need to be overcome.