Homebuilder lot supply years estimate how many years of future home closings a builder's lot inventory represents at a stated historical closing pace.
A simplified formulation is:
lot supply years = controlled homesites ÷ trailing annual home closings
It is a land-duration measure, not a guarantee of future deliveries.
Years of supply turn a large lot count into operating context
Taylor Morrison reported 75,626 owned and controlled homebuilding lots at the end of the first quarter of 2026.
Based on trailing twelve-month closings, the company said that represented 6.2 years of total lot supply, including 3.0 years of owned supply.
The duration view makes raw lot count easier to interpret relative to the builder's current operating scale.
Total and owned supply answer different questions
Total lot supply can include land controlled through options or other off-balance-sheet arrangements.
Owned lot supply isolates the portion funded more directly on the balance sheet.
A builder can therefore maintain several years of total supply while keeping owned years materially lower.
The denominator can change quickly
If home closings fall, years of supply can rise even without buying more lots.
If closings accelerate, the same land inventory can represent fewer years.
Investors should separate changes in lot inventory from changes in the closing-rate denominator.
Primary-source examples
- Taylor Morrison first-quarter 2026 results
- Taylor Morrison March 2026 Form 10-Q
- Taylor Morrison fourth-quarter 2025 results
Homebuilder lot supply years are most useful as a land-pipeline duration measure. Read them with closings, active communities, owned-versus-controlled lots, and land investment.
Part of the Homebuilder Operating Model
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