How do builders determine where to build? - Posted by Jimmy

Posted by Nate(DC) on August 31, 2003 at 14:36:16:

The biggest factors are:

  1. Demographics - where are population growth and job growth occurring and where are they projected to continue?

  2. Availability of land


How do builders determine where to build? - Posted by Jimmy

Posted by Jimmy on August 31, 2003 at 13:10:18:

Can someone tell me what type of analysis and statistics larger builders use to determine where they are going to build a subdivision? I want to think like a builder when deciding on what the up and coming areas may be.

From my experience, builders typically look at a combination of market trends, demographic data, and economic indicators. Key factors include:

  1. Population Growth: Areas with increasing populations are prime targets. Builders analyze census data and local government reports to identify these trends.
  2. Economic Indicators: Employment rates, income levels, and economic development projects can signal a growing market. High job growth and new business investments are positive signs.
  3. Housing Demand: Builders look at current housing supply vs. demand. Low inventory and high demand often mean good opportunities for new subdivisions.
  4. Infrastructure Developments: Planned infrastructure projects like new roads, schools, and public services can significantly boost an area’s attractiveness.
  5. Real Estate Trends: Studying recent sales data, price trends, and the performance of nearby developments helps in assessing the market’s health and potential.
  6. Zoning and Land Availability: Areas with favorable zoning laws and available land that can be developed without significant regulatory hurdles are more attractive.

Thinking like a builder involves not just looking at present conditions but also anticipating future growth. If anyone has additional insights or tools they use for this kind of analysis, I’d love to hear about them too.