More than 300,000 empty lots for sale could close America's housing shortage by 6%
Zillow (NASDAQ:Z) released new research estimating the U.S. housing shortage at 4.7 million homes, identifying 300,242 empty lots of 5 acres or less listed for sale on its platform in June 2026, equal to 17.4% of all for-sale listings.
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Rhea-AI Summary
Zillow (NASDAQ:Z) released new research estimating the U.S. housing shortage at 4.7 million homes, identifying 300,242 empty lots of 5 acres or less listed for sale on its platform in June 2026, equal to 17.4% of all for-sale listings. Building one home on each lot could trim the deficit to roughly 4.44 million homes, a 6.3% reduction, which Zillow describes as conservative given the typical lot size of 0.57 acres.
The largest lot counts are in Florida (42,601), Texas (40,907) and California (18,508), while rural markets show the highest concentration of empty lots at 25.3% of listings, versus 13.6% in suburbs and 9% in urban areas. Rural land has a median price of about $75,000 per acre, compared with more than $181,000 in suburbs and about $500,000 in cities. Zillow is also taking part in a 12-week federal tech sprint with the U.S. Census Bureau's Opportunity Project to explore ways to expand access to small-dollar housing loans in rural communities and reduce frictions for buyers seeking to purchase and build on an empty lot.
Details
News Market Reaction – Z
On Jul 21, the day this news came out, Z closed 3.57% below the previous close.
Data tracked by StockTitan Argus for the Jul 21 session.
Key Figures
- Housing deficit
- 4.7 million homes
- Current U.S. housing shortage
- Empty lots listed
- 300,242 lots
- Zillow listings in June 2026
- Listing share
- 17.4%
- Share of all for-sale listings in June 2026
- Deficit reduction
- 6.3%
- Reduction if one home were built on each listed lot
- Remaining deficit
- 4.44 million homes
- Projected deficit after building on each listed lot
- Typical lot size
- 0.57 acres
- Typical empty lot for sale
- Federal tech sprint
- 12 weeks
- Zillow participation with the U.S. Census Bureau's Opportunity Project
- U.S. median lot price
- $79,000
- Median price in the article's state table
Historical Context
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Deficit plateaued while affordability improved and construction added housing units.
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Nationwide premium agent membership launched with consumer insights and AI workflow tools.
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Company scheduled second-quarter 2026 results release and investor webcast for August 5.
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June report showed higher sales, listings and home values amid limited inventory growth.
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GoDaddy partnership highlighted housing data alongside its entrepreneurial cities ranking.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Building one home on each empty lot listed for sale on Zillow would reduce the national housing deficit to 4.44 million homes
- A housing shortage of 4.7 million homes is the key driver of America's housing affordability crisis.
- 300,242 empty lots smaller than 5 acres were listed for sale on Zillow in June 2026, representing
17.4% of all for-sale listings. Building one home on each of those lots would reduce America's housing deficit by6.3% . - Zillow is participating in a federal tech sprint to find ways to reduce friction for rural buyers looking to build on an empty lot.
More than 300,000 empty lots 5 acres or smaller were listed for sale on Zillow in June, making up
"The more than 300,000 lots currently listed for sale represent the lowest-hanging fruit in addressing a housing shortage that's two decades in the making," said Kara Ng, senior economist at Zillow. "The challenge is making it feasible to build. Loosening zoning rules, streamlining permitting and expanding access to financing would reduce the cost and uncertainty that hold construction back, turning available lots into much-needed homes. The ROAD to Housing Act is an encouraging sign that policymakers understand what it will take to close the gap, but some of this reform will need to happen at the state and local levels."
Where the empty lots are
The five states with the most empty lots listed are
Rural markets have the highest concentration of empty lots, at
Clearing the path to more homes
Closing a gap this large requires solutions that address the problem from multiple angles. Zillow advocates for measures that make it easier and less expensive to build, such as modernizing zoning to allow more density, streamlining permitting, expanding financing options and expanding access to lower-cost housing options like manufactured homes. Manufactured homes are particularly well-suited to helping close this gap, as they can be built faster and at a fraction of the cost of traditional, site-built construction. Recent legislation, including the 21st Century ROAD to Housing Act, is already addressing some of those barriers.
One hurdle for buyers interested in these lots is navigating a fragmented process — finding land, selecting a home type and securing financing are typically three separate and confusing steps. Zillow is working to change that through innovative solutions. This summer, the company has been participating in a 12-week federal tech sprint with the
State | Empty lots | Share of | Median | Median price |
300,242 | 17.4 % | 0.57 | ||
7,651 | 20.2 % | 0.75 | ||
1,131 | 34.6 % | 1.24 | ||
8,131 | 16.2 % | 1.03 | ||
6,621 | 25.1 % | 0.50 | ||
18,508 | 16.8 % | 0.63 | ||
6,284 | 13.9 % | 0.97 | ||
425 | 7.6 % | 1.26 | ||
462 | 9.2 % | 0.75 | ||
42,601 | 18.1 % | 0.26 | ||
10,341 | 14.1 % | 1.00 | ||
1,411 | 16.9 % | 1.00 | ||
3,175 | 19.3 % | 0.98 | ||
6,668 | 22.2 % | 0.43 | ||
4,124 | 15.0 % | 0.43 | ||
4,145 | 25.0 % | 0.39 | ||
2,018 | 19.4 % | 0.44 | ||
4,370 | 20.1 % | 0.87 | ||
9,159 | 29.5 % | 0.50 | ||
1,231 | 15.7 % | 1.80 | ||
1,676 | 8.7 % | 0.75 | ||
846 | 6.2 % | 1.17 | ||
8,597 | 21.5 % | 0.59 | ||
4,962 | 19.3 % | 0.58 | ||
4,273 | 24.7 % | 0.69 | ||
5,607 | 18.6 % | 0.50 | ||
2,395 | 21.3 % | 0.83 | ||
2,773 | 30.4 % | 0.27 | ||
2,869 | 15.5 % | 0.72 | ||
573 | 12.6 % | 1.23 | ||
1,352 | 6.5 % | 0.49 | ||
4,293 | 30.3 % | 1.00 | ||
3,554 | 8.1 % | 0.78 | ||
14,226 | 18.2 % | 1.02 | ||
2,023 | 45.9 % | 0.40 | ||
4,313 | 13.0 % | 0.46 | ||
5,723 | 19.9 % | 0.84 | ||
3,745 | 16.1 % | 0.51 | ||
6,511 | 18.3 % | 0.38 | ||
159 | 9.0 % | 0.86 | ||
5,547 | 12.2 % | 0.77 | ||
2,466 | 38.7 % | 0.50 | ||
9,748 | 17.9 % | 0.85 | ||
40,907 | 16.2 % | 0.52 | ||
3,553 | 15.7 % | 0.67 | ||
382 | 11.7 % | 1.70 | ||
4,843 | 14.9 % | 1.00 | ||
5,563 | 13.9 % | 0.50 | ||
1,685 | 26.2 % | 0.94 | ||
5,372 | 23.8 % | 0.64 | ||
1,167 | 24.4 % | 0.54 |
About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.
As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.
Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.
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SOURCE Zillow
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