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Homebuilders turn to land development to improve cycle times
Builder confidence fell to 37 in May, and single-family construction timelines are about two months longer than a decade ago, raising pressure to shorten the lot-delivery phase.
HousingWire reports that as margins tighten and builders can no longer count on rising home prices to absorb unexpected costs, attention is shifting from only vertical construction efficiency to the less predictable land development process that turns raw land into build-ready lots.
According to the NAHB/Wells Fargo Housing Market Index, builder confidence fell to 37 in May, marking the 25th consecutive month below the 50 break-even threshold. The outlet also notes that single-family construction timelines remain roughly two months longer than they were a decade ago, meaning capital stays tied up longer before homes can be delivered.
HousingWire says the industry has already standardized and optimized vertical construction by using repeatable floor plans, tighter scheduling, and tracking systems from foundation to closing. By contrast, horizontal construction varies widely by site, with factors such as soil conditions, topography, drainage needs, weather events, regulatory requirements, and contractor coordination affecting progress and making outcomes harder to benchmark.
The outlet frames improved visibility and forecasting for lot delivery as a competitive advantage for builders seeking to protect margins, speed horizontal cycle times, and reduce delays, emphasizing that the next operational gains may come from the land phase rather than the home construction itself.