Land Subdivision NAICS 237210

        Land Subdivision

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Purchase Report

Industry Summary

The 4,500 land subdivision firms in the US purchase and prepare property for division into multiple lots and subsequent sale to builders for residential, commercial, or industrial use. They typically develop property that they own, but may also subdivide and prepare sites for other property owners. About 66% of land subdivision firms have no employees. They rely on subcontractors to perform all services in preparing land for development.

Complying with Government Regulation

Land subdivision firms must comply with a wide range of federal, state, and local regulations governing land development.

Local Opposition To Development

Concerns over rampant growth or changes to existing neighborhoods can lead to opposition to new land subdivision projects.


Recent Developments

Jul 7, 2025 - New Single-Family Home Sales Plummet
  • New single-family home sales fell 13.7% month-over-month and were down 6.3% year-over-year in May 2025, according to the US Census Bureau. May’s total new home sales reached 623,000 units. According to Dow Jones estimates, Wall Street analysts had expected May sales to reach 695,000. In recent quarterly reports, some homebuilders said high interest rates and weaker consumer confidence weighed on demand. As sales of new homes remain soft, inventories of unsold homes are increasing. At the end of May, there were 507,000 new homes for sale, up 15% compared to May 2024. The number of unsold new homes in May was the highest since the summer of 2022, after the Federal Reserve began increasing interest rates.
  • Home builder confidence in the single-family market dropped in June to the lowest level since December 2022 amid high mortgage rates, tariff concerns, and increased economic uncertainty, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell two points to 32 in June 2025. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 37% of builders have reduced home prices to lure potential buyers off the sidelines, although the average price reduction of 5% has remained unchanged since November 2024.
  • The total value of nonresidential building starts rose 18% in May, according to Dodge Construction Network. Commercial construction starts increased 28% amid stronger activity in the retail, office, and warehouse subsectors. Healthcare helped boost institutional starts to 19% growth in May over April. Manufacturing starts were down 13%. Dodge Construction Network associate director of forecasting Sarah Martin said, “Construction starts rebounded across most sectors in May, bouncing back from a sluggish April. However, year-to-date figures remain below last year’s pace. Ongoing uncertainty around trade policy and the economic outlook is likely to keep construction activity in check in the months ahead.”
  • Demand for building design services improved in May over the prior month, but architectural billings remain soft, according to a June report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) rose to 47.2 in May 2025 from April’s reading of 43.2. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries rose to 51.4 in May compared to 48.0 in April, and the index for the value of new design contracts increased from 43.3 to 45.9. The AIA’s Chief Economist, Kermit Baker said, “Business conditions remained sluggish nationwide in May, with nonresidential construction activity continuing to decline in several major metro areas. Firms across all specializations reported declining billings this month. However, the pace of decline slowed at firms specializing in multifamily residential projects. These, along with institutional work, are likely to be the first to return to growth when conditions begin to improve.”

Industry Revenue

Land Subdivision


Industry Structure

Industry size & Structure

The average land subdivision firm with employees has about 8 workers and generates about $3.7 million in annual revenue.

    • The land subdivision industry consists of 4,500 firms with 37,100 employees and generate about $16.8 billion annually.
    • The average single operator (non-employer) firm generates $176,000 in annual revenue.
    • Single operator firms rely on subcontractors to perform all services in preparing land for development.
    • About 79% of firms with employees have less than 5 employees. Only about 74 firms have over 100 employees.
    • The largest states for land subdivision are Texas, California, and Florida.

                            Industry Forecast

                            Industry Forecast
                            Land Subdivision Industry Growth
                            Source: Vertical IQ and Inforum

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