Land Subdivision — Business Survival Rate
An estimated 57% of land subdivision businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 10.7%.
Is Land Subdivision a Good Business to Start?
With a 57% five-year survival rate, land subdivision is near the national average (~50%). This means roughly half of new entrants will still be operating after 5 years — typical business risk that rewards solid planning and execution.
The annual exit rate of 10.7% indicates moderate turnover. Success depends on differentiation, location, and operational efficiency rather than inherent industry advantages.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net negative: more businesses closing than opening (-1.7 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 23,463 workers across 3,678 firms.
Want to know how much land subdivision businesses actually make?
See full revenue benchmarks for Land Subdivision →Frequently Asked Questions
- What percentage of land subdivision businesses fail?
- Approximately 43% of land subdivision businesses fail within their first 5 years. The annual closure rate is 10.7%, with 352 firms closing permanently in 2023.
- Is the land subdivision industry growing or shrinking?
- The land subdivision industry is currently stable with a net job creation rate of +1.9% per year. New businesses are entering at 9.0% while 10.7% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.