A Shrinking Land Pipeline Is Driving Up Costs Nationwide

A 24% drop in land listings is reshaping development economics.

Nina Dale
April 23, 2026

In partnership with

Good morning. The construction boom of 2020–2022 didn't just burn through lumber and labor, it quietly devoured years of buildable land supply, and developers are still feeling the squeeze.

🎙️ Episode of the Week: Brixmor CEO Brian Finnegan shares how Brixmor built a 60M+ SF retail platform around everyday demand, and why that strategy is paying off.

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Market Snapshot

S&P 500

GSPC

7,137.90

Pct Chg:
+1.05%

FTSE NAREIT

FNER

821.65

Pct Chg:
-0.96%

10Y Treasury

TNX

4.305%

Pct Chg:
+0.013

SOFR

30-DAY AVERAGE

3.64%

Pct Chg:
-0.00

*Data as of 4/22/2026 market close.

Land Shortage

A Shrinking Land Pipeline Is Driving Up Costs Nationwide

A post-pandemic building surge has left the U.S. with less developable land, and much higher prices.

By the numbers: Raw land listings have dropped 23.6% since 2019, with just over 425,000 listings recorded in Q1 2026, according to Realtor.com. Meanwhile, housing inventory has rebounded, climbing 20% YoY as projects initiated during the low-rate era (2020–2022) hit the market.

Supply-demand disconnect: Historically, land and home listings moved in sync, but that relationship broke in 2024. Builders rapidly converted previously acquired land into new housing, effectively removing parcels from the market for good and creating a lasting supply gap.

Prices surge across regions: The median price per acre reached $62,365—up 76.6% since 2019. Gains were most pronounced in the Northeast (+101%) and Midwest (+89%), reflecting tightening supply and sustained demand.

Raw vs. ready-to-build land: Raw land prices have jumped 86.5% since 2019, outpacing the 53% increase for shovel-ready sites. The sharper rise reflects speculative upside and lower starting price points for undeveloped parcels.

Pipeline pressure: Despite improving housing inventory, land supply remains constrained. Developers are still working through the backlog of lots purchased during the pandemic-era boom, limiting new land availability and potentially driving up future construction costs.

➥ THE TAKEAWAY

Less land, higher costs: The land market isn’t bouncing back anytime soon. Years of aggressive building permanently reduced supply, meaning higher land costs are likely to ripple through development pipelines and keep upward pressure on home prices.

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✍️ Editor’s Picks

Emerging risks: Cyber, environmental, and catastrophic perils can disrupt portfolios. Arcstone Insurance Advisor's blueprint guides risk management, income protection, and steady operations. (sponsored)
Power play: Switch secured a first-of-its-kind $2.6B credit facility to front massive utility prepayments, offering a new workaround for data center developers facing soaring upfront power costs.
Sentiment reset: CRE finance sentiment plunged 20% in Q1 2026 back to baseline as geopolitical shocks rattled rates and liquidity, even as underlying demand for deals and financing held up.
Register now: Learn why grocery-anchored retail is outperforming, from surging investment and tight vacancy to the key factors behind identifying top-performing centers in today’s evolving retail landscape. (sponsored)
Early expansion: REIT highs signal a new cycle’s early phase—not a peak—driven by reset valuations and improving fundamentals.
Lending showdown: Private credit and banks are locked in fierce competition for CRE loans, with each leveraging distinct strengths to capture borrowers in a crowded, post-crisis market.
Data disruption: Maryland shut down its property records database after detecting suspicious activity, cutting off a key tool for real estate professionals.

🏘️ MULTIFAMILY

Pricing Disconnect: Multifamily pricing is breaking from traditional rent-cap rate dynamics as investors lean on future expectations and capital pressures over current income fundamentals.
Senior bet: Investcorp acquired a $200M bicoastal portfolio of multifamily and senior housing assets, signaling a renewed push into senior living amid strong demographic demand.
Capital deployment: Hilltop Residential raised $288M to acquire up to $2B in multifamily assets, betting on growth markets despite ongoing rent pressure.
Controversial buy: Alpha Management, a landlord with a history of property neglect allegations, acquired a $36M Brighton apartment portfolio near major Boston universities.

🏭 Industrial

Industrial frontier: A planned 9.4M SF industrial project in Palmdale could reshape L.A.’s logistics market by pushing large-scale development into cheaper, land-rich fringe areas.
Storage slump: Self-storage rents fell across all major U.S. markets as oversupply and weak housing demand continue to drag pricing despite rising investment activity.
Industrial refi: Industrial Logistics Properties Trust secured a $1.6B CMBS loan to refinance a 19M SF portfolio, underscoring continued strength and lender appetite in the industrial sector.
Desert demand: Phoenix’s industrial market is rebalancing as strong absorption outpaces new supply, driving record investment activity and declining vacancy.

🏬 RETAIL

Retail remix: Staples is reviving Party City through in-store shop-in-shops at 700 locations, blending party supplies with its print services to drive traffic and sales.
Delivery wars: Walmart is expanding same-day delivery for marketplace sellers by using store backrooms as mini-fulfillment hubs to better compete with Amazon.
Mall metrics: Macerich is redefining Class A mall investing by shifting focus from occupancy to productivity, tenant quality and leasing execution as key drivers of value.

🏢 OFFICE

Office revival: A once-struggling Midtown tower is commanding record rents after a $50M amenity overhaul, highlighting the flight to high-end, experience-driven office space.
Tech footprint: Meta renewed 146K SF of Seattle-area office space despite planned layoffs, signaling a more selective—not shrinking—approach to its real estate footprint.
Robot ripple: AI-driven leasing boom in the Bay Area has rapidly expanded robotics and drone firms’ footprint to 7.6M SF, boosting demand and exposing future power-constrained space shortages.
Debt distress: A $54M loan tied to two Playa Vista office buildings entered special servicing after missed payments, as vacancy challenges and tenant losses continue to pressure asset performance.

🏨 HOSPITALITY

Endless shrimp: Red Lobster is reviving its Endless Shrimp deal post-bankruptcy with tighter limits, higher pricing, and in-store only availability as it works to rebuild sales without repeating past losses.
Hotel hangover: A $35M Hotel Lincoln loan hit special servicing after default, as owner Nakash seeks an extension amid ongoing hospitality distress.
Auction appetite: Hotel assets dominated Crexi auctions in Q1, driving 72% of volume and surging bids as investors chase value-add and recovery opportunities amid improving market momentum.

📈 CHART OF THE DAY

Apartment supply has sharply normalized in early 2026—down roughly 50% from peak levels nationally—though uneven market-level activity suggests the slowdown may be more of a pause than a permanent reset.