04:02 PM EDT, 07/21/2026 (MT Newswires) -- The US housing market faces a long-running supply shortage, and building homes on empty for-sale lots could be one way of shrinking that gap, Zillow Group ( ZG ) (Z, ZG) said Tuesday.

More than 300,000 empty lots smaller than 5 acres were listed for sale on Zillow ( ZG ) in June, reflecting 17.4% of all for-sale listings across the nation, according to the real estate marketplace.

Building a single home on each would shrink America's housing shortage by 6.3% to roughly 4.44 million homes, Zillow ( ZG ) said.

The solution represents the "lowest-hanging fruit" in tackling a supply crisis that has developed over the last two decades, Zillow ( ZG ) Senior Economist Kara Ng said.

"The challenge is making it feasible to build," Ng added. "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."

Florida, Texas, and California top the list of states with the highest number of empty lots. Vacant parcels make up more than one-third of all for-sale listings in North Dakota, South Dakota, and Alaska, according to the report.

Rural markets held the highest concentration of empty lots and are the least expensive on a per-acre basis, compared to suburbs and urban areas, Zillow ( ZG ) said.

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