How to Find Land to Build a Home When Lots Are Scarce

Why are vacant lots so hard to find?

In established neighborhoods, most of the land was built on decades ago. The few empty parcels that remain tend to sell quickly or never reach the open market at all.

The shortage shows up in national data too. In the September 2026 NAHB/Wells Fargo Housing Market Index, 42% of builders rated current lot availability as poor and another 38% rated it fair. In May 2025, 64% of single-family builders reported a shortage of lots, a higher share than in any year between 1997 and 2016, according to the National Association of Home Builders.

The housing stock is also getting older. The median owner-occupied home in the U.S. is more than 40 years old, according to the Harvard Joint Center for Housing Studies. Those older homes often sit on bigger lots than newer subdivisions offer, which is one reason resale homes in established areas stay in demand. Little open land plus plenty of aging homes in desirable locations has changed how buyers and builders search.

“The demand is still there, but the traditional vacant lot is getting harder to find,” Pysz said. “A buyer may know the exact neighborhood, school area or even the street where they want to build. At that point, the search has to go beyond what is currently listed for sale.”

Where can you build if there are no vacant lots?

When a vacant land search turns up nothing, buyers usually end up looking at one of three kinds of property.

Homes worth more for their lot. Some properties sell mainly for their location and lot size rather than the house itself. A small or outdated home on a sought-after street can become the site of a new build once the existing structure comes down.

Oversized parcels that can be divided. A larger lot may have room for two homes if local zoning allows it. Splitting one parcel into two buildable lots creates an opportunity that would never show up in a search for vacant land.

Homes nobody is selling yet. If a buyer is set on a particular block and the listings come up empty, an agent can look up homes that fit and write to the owners.

Each option requires its own due diligence, from zoning rules and demolition permits to utility work and surveys. Those details vary by municipality, so buyers should confirm what is allowed on a specific property before committing to it.

Is every older house a teardown?

No. An older home in a strong location is not automatically headed for demolition. Renovating can make more financial sense than rebuilding, especially when the structure is sound and the layout can be updated.

Pysz has seen both outcomes in Elmhurst. Most of his recent deals are headed for new construction, but a house on South Cedar Avenue is staying put and getting a major renovation.

“Not every older house is automatically a teardown,” Pysz said. “Sometimes the house makes sense to renovate. Other times, the land may present a better opportunity for new construction. Every property has to be looked at individually.”

Buyers weighing the two paths should look at a few factors:

• The condition of the foundation, roof and major systems
• What local zoning allows for a new build, including size, height and setbacks
• The combined cost of demolition, permits and new utility connections compared with the cost of renovating
• Whether the existing home has features worth keeping, such as mature trees, original architectural details or a floor plan that already works

A home inspection and a walkthrough with a builder or contractor can answer most of those questions before an offer goes in. Buyers still deciding how much work they want to take on can weigh the tradeoffs between a turnkey home and a fixer-upper. If renovating wins out, it helps to know the pros and cons of buying a fixer-upper before committing.

How does a lot split create a building site?

A lot split divides one parcel into two or more separate lots, each of which can be sold and built on. The process typically requires approval from the local planning or zoning department, a new survey and confirmation that each new lot meets minimum size and frontage requirements.

On Comstock Avenue in Elmhurst, two new construction projects trace back to a single piece of land that was split in two. Nobody listed two empty lots there. The lots were created.

“Comstock is a good example of what is happening,” Pysz said. “The opportunity wasn’t obvious from simply searching for vacant land. It required looking at the property differently and recognizing what could potentially be done with it.”

Not every large lot qualifies. Zoning codes, easements and utility access can all rule out a split, which is why feasibility should be checked with the municipality early in the process.

Can you buy a house that isn’t for sale?

Yes, and in Pysz’s corner of suburban Chicago, it’s becoming a common route to a building site. An agent can research properties that fit a buyer’s criteria, such as lot dimensions, location or school area, and then reach out to the owners.

“Some homeowners have no intention of selling until an offer gives them a reason to consider it,” Pysz said. “That is where the idea of a ‘make me move’ offer becomes very real.”

A make-me-move offer has to be strong enough to get an owner to consider a sale they had not planned. Buyers taking this route should be ready to be flexible on price or timing, and they should expect that some owners will say no. Working through an agent keeps the outreach professional and helps structure terms that work for both sides.

Owners should know this too. On a street where builders are hunting, a house can get a knock on the door for its lot and location alone, whether or not it was ever for sale.

What does a real estate agent do in a new construction search?

When a buyer plans to build, the work is usually split between two professionals. The builder handles design and construction. The agent handles the real estate side: finding a property that fits, evaluating its potential and negotiating the purchase.

Pysz is clear that he doesn’t build houses. His job ends where the builder’s begins: he finds the property and gets it under contract, and the builder takes it from design through construction. For buyers, that means working with an agent who knows the local market street by street and can spot opportunities that never appear in a search. It also helps to go in knowing the pros and cons of new construction, from cost per square foot to build timelines.

Financing is another piece to sort out early. Buying land or a teardown and then building often involves a construction loan, which works differently from a standard mortgage. Buyers working with a larger builder may also be offered in-house financing, so it’s worth comparing builder and traditional mortgages before signing on. A lender can walk through the options before the search begins.

Finding a place to build in an established neighborhood takes more legwork than it used to. No listings doesn’t mean no options. It means widening the search to older homes, bigger parcels and owners who haven’t thought about selling yet.

“In Elmhurst, the next building lot may already have a house sitting on it,” Pysz said. “The challenge is finding it before everyone else does.”

Ready to start looking for a place to build? Connect with a REMAX agent who knows your target neighborhood.