You are absolutely on the right path, IMHO... in my market we have a lot of land, but the zoning of it is such that it is arduous to build. Likewise, what can be built profitably is not necessarily affordable for buyer. I see gaps at every price point - the first time buyer has to either buy a poorly built new construction that they can barely afford, or they have to buy older construction where they may not have the equity or capital to property maintain. At the top of market, IE: luxury, builders are hesitant to build without a ready buyer because of the massive outlay, especially knowing that those buyers are very selective. Middle of the market you end up with properties that smell of builders trying to push up price and perceived amenities while being very careful to not push up their costs. So you end up with nice houses on terrible lots, or you end up with cheap construction with a varnish of granite and stainless steel appliances to make it look better than it is.