Land Development in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 23721Revenue
$9.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
27,428
Businesses
12,091
Wages
$X.Xbn
Land Development in the US industry analysis
Land developers are responsible for preparing sites prior to construction. Industry-specific activities vary between projects, but common activities include purchasing land, obtaining regulatory approval for subdivision, preparing sites and installing basic amenities such as roads and sidewalks. Only companies that earn a majority of their revenue from these prebuilding activities are considered to be part of the industry. Site preparation services offered by developers in other construction-related industries are not included in the industry. Decreases in nonresidential construction activity and increases in office rental vacancies amid the COVID-19 pandemic have negatively affected industry performance. Land Development industry revenue has plunged at a CAGR of 4.3% over the past five years and is expected to total $9.4 billion in 2023, when revenue will fall by an estimated 4.9%. Profit will drop due to wages increasing as a share of total revenue.
Trends and Insights
- The residential market carried the industry through the early stages of the COVID-19 pandemic. Land developers were shielded from revenue loss in 2020 thanks to a boom in residential construction following urban flight caused by the pandemic.
- Demand from the nonresidential sector faltered because of the COVID-19 pandemic. The mass shutdown of the economy halted countless building projects across the country, many of which did not resume until 2022.
- Texas is the largest state for land developers. Texas is home to many private and governmental construction and infrastructure projects, meaning land development services are in high demand.
- The industry is made up of many small, regional developers. There is no major land developer with a notable market share.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 4.3 % over the past five years, to reach an estimated $9.4bn in 2023.
Trends and Insights
Residential housing ferried the industry through COVID-19
- Land developers rely on a healthy residential construction market for a crucial portion of their business. Housing starts and the value of residential construction both spiked amid the pandemic, generating robust demand.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Land developers adapt to heightened competition
- Competition among key land developers will intensify through the outlook period. Although credit markets will improve and lending rates will retreat to historical levels, land development companies will remain subject to tighter lending standards, given their past performance amid the COVID-induced recession.
Biggest companies in the Land Development in the US
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 | Profit ($short_0)
2023 | Profit Margin (%)
2023 |
|---|
There are no companies that hold a large enough market share in the Land Development in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Developing operator-owned land for residential use, Developing operator-owned land for nonresidential use and Developing and subdividing customer-owned land. Developing operator-owned land for residential use is the largest segment of the Land Development in the US.
Trends and Insights
Developing operator-owned land for nonresidential use has increased as COVID restrictions vanish
- Commercial construction, real estate investment trusts (REITs), builders and other real estate developers purchase finished or interim-stage lots.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Home Builders in the US
- Apartment & Condominium Construction in the US
- Industrial Building Construction in the US
- Commercial Building Construction in the US
- Municipal Building Construction in the US
Complementors
- Excavation Contractors in the US
- Surveying & Mapping Services in the US
International industries
- Site Preparation Services in Australia
- Land Development and Subdivision in Australia
- Site Preparation Services in New Zealand
- Land Development and Subdivision in New Zealand
- Site Preparation in the UK
Table of Contents
About this industry
Industry definition
This industry services raw land (except cemeteries) and subdivides properties into lots for subsequent sale 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 activities to specialist contractors. Operators that perform only the legal subdivision of land are not included in this industry.
What's included in this industry?
Subdividing property (except cemeteries) into lots for saleDeveloping property for sale (planning, amenities and power)Land acquisition, assembling and subdivisionLand subdivision and utility installation (e.g. electric, water and sewer)Companies
Purchase this report to view all major companies in this industry.
Related Terms
PREDEVELOPMENT WORKRESIDENTIAL BUILDINGNONRESIDENTIAL BUILDINGIndustry Code
NAICS 23721 - Land Development in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The residential market carried the industry through the early stages of the COVID-19 pandemic. Land developers were shielded from revenue loss in 2020 thanks to a boom in res...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Demand from the nonresidential sector faltered because of the COVID-19 pandemic. The mass shutdown of the economy halted countless building projects across the country, many ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Texas is the largest state for land developers. Texas is home to many private and governmental construction and infrastructure projects, meaning land development services are...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is made up of many small, regional developers. There is no major land developer with a notable market share.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no major companies in the industry. Small-time regional operations comprise the land development industry. No single developer holds more than a 5.0% market share.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The economic decline because of the COVID-19 pandemic hindered commercial demand for land development services. A spike in housing starts caused by rapid urban flight in the ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
COVID-19 created an increased demand for land development from the residential sector. This translated to increased profit in 2020, which fell sharply in 2022 as interest rat...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Land Development in the US industry in United States in 2024?
The market size of the Land Development in the US industry in United States is $9.4bn in 2024.
How many businesses are there in the Land Development in the US industry in 2023?
There are 12,091 businesses in the Land Development in the US industry in United States, which has grown at a CAGR of 3.6 % between 2018 and 2023.
Has the Land Development in the US industry in United States grown or declined over the past 5 years?
The market size of the Land Development in the US industry in United States has been declining at a CAGR of 4.3 % between 2018 and 2023.
What is the forecast growth of the Land Development in the US industry in United States over the next 5 years?
Over the next five years, the Land Development in the US industry in United States is expected to grow.
What does the Land Development in the US in United States include?
Subdividing property (except cemeteries) into lots for sale and Developing property for sale (planning, amenities and power) are part of the Land Development in the US industry.
How competitive is the Land Development in the US industry in United States?
The level of competition is high and steady in the Land Development in the US industry in United States.
