Land Development for New Construction Homes: Before Groundbreaking

New Construction Homes by Natasha Lingle

When we drive around the long-established neighborhoods of familiar market areas, it’s easy to forget that they were once bare land. At some point, a developer, a subdivider, or a builder saw the potential in that piece of land and decided to transform it from bare land to building lots and new houses.

How does land transition from a bare undeveloped state to shovel-ready building lots? Before any construction goes up on bare land, a lot of steps have to be accomplished.

The process starts with market and land studies commissioned by a developer, who may also be a builder. Feasibility studies of the proposed development assess the potential market demand and supply for new homes and the competition. An initial survey along with an environmental assessment and soil analysis verifies suitability of the land for residential construction.

If these studies yield positive results, the developer hires an engineering and architectural firm to draw preliminary plans and specifications for the development. The plans show placement of roads and utilities—electric, gas, water, sewer, drainage—and preliminary platting of building lots.

Of course, the local governing body (township, city, or county) must approve the plans. When the land development has cleared all of these hurdles, the developer can move to close on the financing to acquire the property, stake the lots, and begin installation of utility infrastructure and temporary roads.

Compared to new land development, infill development takes advantage of existing infrastructure, streets, and utilities. Zoning disputes can, however, hamstring infill developments, particularly when transitioning from commercial uses to residential and mixed use.

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