Land developers will benefit from improved lending conditions and real estate values.
Los Angeles, CA (PRWEB) October 28, 2013
Operators in the Land Development industry are responsible for preparing a site for building construction. Industry-specific activities vary between projects, but commonly include purchasing land, obtaining regulatory approval for subdivision and development, preparing the site (e.g. surveying and excavating) and installing basic amenities, such as utility connections, roads and sidewalks. “Some of the industry's larger companies add value by developing lifestyle amenities for residential communities, such as artificial lakes,” according to IBISWorld Industry Analyst Stephen Morea. About two-thirds of industry revenue is generated from servicing the residential property market; the balance comes from servicing commercial, institutional and, to a lesser extent, industrial and nonbuilding property markets.
In the five years to 2013, industry revenue is expected to decline at an annualized rate of 1.6% to total $19.6 billion. In 2008 and 2009, the industry struggled through the housing market's most severe downturn since the Great Depression, reflecting the subprime mortgage crisis, the bursting of the real estate bubble and the collapse of credit markets. Real estate markets began to recover in 2010 and recorded growth in the subsequent years, a trend that helped raise the Land Development industry out of the doldrums. Industry revenue is expected to grow 5.1% in 2013.
Aided by improvements in the general economy, this growth will continue over the five years to 2018. “The industry will benefit from improvements in demand for housing construction, higher levels of lending activity and increases in real estate values,” says Morea. As unoccupied homes are purchased and housing inventories fall over the next five years, demand for industry services will grow as new subdivisions are drawn up in response to rising homebuyer demand for newly built houses.
For more information, visit IBISWorld’s Land Development in the US industry report page.
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IBISWorld industry Report Key Topics
The Land Development industry services land (except cemeteries), subdivides properties into lots and develops building lots to sell to builders. Land subdivision precedes building activity. Servicing of land may include excavation work for the installation of roads and utility lines, and operators may subcontract excavation and other activity to specialist contractors. The industry includes large, diversified general contractors that also undertake land development activities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
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