For those buying land for new construction, how long are you typically holding before you start building? Are you building right away, or sitting on it for a bit depending on timing and market conditions?
Trying to understand how others are approaching timing right now.
Personally right now I am sitting on land as rate are high and costs are going up as well so not looking into taking the ground up risk atm although there good tax advantages. Unless you have a good team and keen eyesight for everything ground ups can carry many risks.
Personally right now I am sitting on land as rate are high and costs are going up as well so not looking into taking the ground up risk atm although there good tax advantages. Unless you have a good team and keen eyesight for everything ground ups can carry many risks.
I’m seeing the same, most people are slowing ground-ups unless the numbers are really tight or they already have a locked-in build plan.
Hard to justify starting right now with rates where they are and costs still not fully stable. Even good deals can get stretched if you’re not careful on the front end. A lot of it just comes down to whether you’re already positioned or still deploying. Two very different games right now.
One thing worth adding to the "sitting on it" side: the permit clock doesn't wait for you to feel ready. Most North Texas jurisdictions expire a permit around 180 days from issuance if you haven't hit certain milestones, and some also expire it if there's no inspection activity in that window even if you're inside the overall period. If you pull a permit early to lock in current fees or code, then sit longer than planned waiting on rates, you can end up reapplying under a new code edition and losing the thing you were trying to save.
So it's not just "when do I feel ready to build" — it's "how long can I actually sit before the permit itself becomes the reason I have to restart."
I think it depends on your plan and the local market. If everything is ready—financing, permits, and contractors—I’d rather start building sooner to avoid carrying costs. But if the numbers improve by waiting or you're expecting favorable market conditions, holding the land for a few months can make sense.
It depends on the deal, but I'd rather start building as soon as financing, permits, and contractors are in place. Holding land for too long adds carrying costs without generating income. That said, if market conditions or construction costs are expected to improve, a short hold can be a smart strategy as long as it's part of the original plan.
For those buying land for new construction, how long are you typically holding before you start building? Are you building right away, or sitting on it for a bit depending on timing and market conditions?
Trying to understand how others are approaching timing right now.
I look closely at surrounding momentum and job growth catalysts before deciding to hold or break ground. If major commercial developments or job drivers are slated 3 to 5 years out, sitting on the parcel makes sense to let the surrounding market mature. But if active development is already happening nearby, I move quickly to align with the local absorption rate. Speed only works if the area is ready to absorb the product.
@Brooke Adams It really depends on your plans and why you purchased the land in the first place. If it was specifically acquired for new construction, building sooner may make sense, while a long term investment or appreciation strategy could justify holding it until market conditions or timing are more favorable.