Housing affordability is often discussed in terms of interest rates, labor costs, or construction materials. But one of the most fundamental—and frequently overlooked—drivers of housing access and pricing is the availability of finished lots. When the supply of developed lots declines, it creates a bottleneck that limits new home production, restricts consumer choice, and ultimately drives housing prices higher.
The long-term data for the Knoxville Metro area tells this story clearly. According to MarketGraphics Research Group’s Developed Lot Inventory History for the six-county Knoxville region, finished lot inventory peaked at more than 24,500 lots in 2009 before entering a prolonged period of decline. By 2025, that inventory had fallen to approximately 11,461 lots—less than half of the peak level. Even compared to the late 1990s and early 2000s, today’s lot supply is historically low. This decline has meaningful consequences for the housing market.
Finished Lots Are the Foundation of New Housing…