Land Subdivision Revenue Benchmarks
The average land subdivision business in the United States generates $1.5M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 4,555 land subdivision businesses in the U.S., employing 21,736 workers with an average profit margin of 7.0%. The average employee in this industry earns $113K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Land Subdivision Business Actually Do?
Land developers who buy raw land, get entitlements, install infrastructure (streets, utilities), and sell finished buildable lots.
Who buys: Homebuilders buying finished lots, individuals buying single lots.
Average Revenue
$1.5M
per year
Profit Margin
7.0%
industry average
Revenue / Employee
$307K
per year
Total Businesses
4,555
in the US
Est. Owner Income
$103K
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
$113K
per year (BLS)
Market Saturation
1.4
firms per 100K people
How Much Do Land Subdivision Charge?
Land developers subdivide raw land into buildable lots — profit is sale price minus dev costs.
| Service | Typical range |
|---|---|
Development cost per lot (typical) | $40,000–120,000 |
Finished lot sale price | $60,000–350,000+ |
Developer margin | 15–30% |
Total project size (typical) | 20–500 lots |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete land subdivision business plan
A 12-section data-backed business plan for a land subdivision business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the land subdivision industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Materials & subcontractors | $38 | $555K | Lumber, concrete, fixtures, subcontracted trades — the physical scope of the job. |
Wages & benefits | $30 | $440K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $5 | $74K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $46K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $250K | Equipment rentals, insurance (very high in construction), permits, vehicles, fuel. |
Net profit | $7 | $103K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
9.03%
openings/year
Closure Rate
10.75%
closings/year
Net Job Growth
+1.91%
annual
Businesses Closed
352
in 2023
Firm Count Trend
Should You Start a Land Subdivision Business?
Startup Cost
$25K – $150K
Break-Even
10 months
5-Year Survival Rate
52.0%
Related Industries
Frequently Asked Questions
- What does a land subdivision business do?
- Land developers who buy raw land, get entitlements, install infrastructure (streets, utilities), and sell finished buildable lots. Homebuilders buying finished lots, individuals buying single lots.
- How much do land subdivision charge?
- Land developers subdivide raw land into buildable lots — profit is sale price minus dev costs. See the pricing table above for typical rates by service type.
- How much does the average land subdivision make per year?
- The average land subdivision business generates $1.5M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $103K per year at a 7.0% profit margin.
- How many land subdivision businesses are there in the US?
- There are 4,555 land subdivision businesses operating in the United States, employing a total of 21,736 workers.
- How much does it cost to start a land subdivision business?
- Startup costs for a land subdivision business typically range from $25K to $150K, with a 5-year survival rate of 52.0%.
- What is the average salary in the land subdivision industry?
- The average employee in the land subdivision industry earns $113K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The land subdivision industry is relatively stable — with a net job growth rate of 1.9%. Entry and exit rates are balanced at 9.0% and 10.7% respectively.
Approximately 57% of land subdivision businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 352 firms in this industry closed permanently.
Employment & Wages
The average employee in the land subdivision industry earns $113,454/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 5,933 establishments employing 36,910 people, the typical business has about 6 employees.
Industry Trend (2000–2023)
The land subdivision industry has declined 62% since 2000 (from 9,777 to 3,678 firms).
See full historical statistics →Compare Land Subdivision revenue with other industries: