Price of Residential Lots Increases 15%

Home builders paid an average 15% more for residential lots in Orange County last year, according to housing newsletter U.S. Housing Markets, with the biggest price jumps occurring in Irvine, Huntington Beach and Newport Beach. Most residential land here costs more than $500,000 an acre, making lots commensurately expensive. A 4,000-square-foot finished lot for a smaller home cost a builder $70,000 to $100,000. Larger lots for pricier homes ranged from $85,000 to $120,000. Builders said two factors contributed to the price increase--the larger percentage of pricier coastal land that came on the market last year and the rush to buy well-located lots before they were gone.

Melinda Fulmer covers real estate for The Times. She can be reached at (714) 966-7832.