
The land pipeline has become one of the most challenging but critical elements for home builders in today’s market. Securing a steady flow of land is no longer a luxury — it’s essential for sustainable growth and stability. But why is land acquisition and development such a pressing issue and how can builders overcome the hurdles?
The Land Problem
At its core, the land problem stems from a simple equation: demand exceeds supply. Builders are grappling with shorter planning windows, unpredictable lot availability and skyrocketing land prices driven by aggressive competition from national builders.
Many custom builders operate on a short-term basis, securing land for only five to eight months of production. This approach limits their ability to plan long-term, resulting in gaps in cash flow, staffing challenges and difficulty scaling operations.
How Did We Get Here?
The current land challenge didn’t happen overnight. Large corporations have escalated competition by aggressively acquiring land to meet ambitious production goals, which has only made it more difficult to maintain margins without inflating costs.
“Big builders’ thirst for land is driving up pricing,” says Steve Peck, National Land Manager at Epcon Franchising. “Historically, everybody has thought that the land would be 20% of the sales price of the homes. Now, that ratio is probably pushing 30% in some areas.”
The process of land acquisition has also become more complex. Zoning, entitlements and permitting take significantly longer than in the past. Municipalities are less interested in participating in infrastructure costs, pushing more on to the developers regardless of the specific impact of the individual development. Deals that used to close quickly now demand extended commitment and patience.
Strategies to Overcome Land Challenges
Despite competition with big builders and complicated processes, solutions exist.
Plan Long-Term
One key strategy is building long-term land pipelines. Instead of operating on a short-term basis, plan for five to six years ahead. A robust pipeline ensures predictability in cash flow, staffing and growth. This can alleviate the pressure of forcing a deal to work and reduce exposure to significant risk.
Detailed Planning
Another smart approach is detailed planning. “The bar napkin budgets and round numbers won’t work anymore,” Steve emphasizes. To get investors and banks comfortable with you and believing in you, present extremely detailed budgets, proformas and cash flows.
Play the Long Game
In today’s market, land deals are taking more and more time. When national builders evaluate land, they are trying to get a quick “no” and move on to a better lot. Sticking around for the long “yes” can be a rewarding strategy and an advantage over bigger builders.
“Most of the deals that you’re looking at, everybody else has looked at,” says Steve. “If they’ve been passed on, there’s a certain challenge or hurdle. Be willing to plow through that to make some of these deals work.”
For these long “yes” deals, partnerships play a vital role. Establishing a relationship with sellers or municipalities can help overcome these hurdles like zoning and entitlements to secure a good piece of land.
Franchising Can Relieve Your Land Problem
These strategies and solutions are easier said than done. For smaller builders struggling with their land pipeline, partnering with a home building franchise can be a powerful tool.
“Epcon Franchising has a long history of knowing what works and what doesn’t in terms of location, execution, contractor selection and site design,” says Steve.
Epcon Franchising provides land acquisition and entitlement checklists to assist you in avoiding surprises down the road, whether that’s wetlands, endangered species or zoning issues. Beyond land, marketing and sales resources, ongoing support from a franchise network is a huge help.
Building for the Future
Finding and acquiring land is a significant challenge, but it’s not insurmountable. If you’re looking for help on navigating today’s competitive land market and securing your next lot, join our team at the 2025 International Builders Show in Las Vegas! Steve Peck, National Land Manager at Epcon Franchising, will share proven land acquisition strategies and walk you through a compelling case study with Tyrone Leslie and Troy Mattern, Epcon Franchise Builders who used Epcon’s land strategy to find a large piece of land and grow their home building business.
Don’t miss this opportunity to gain actionable insights: epconfranchising.com/ibs2025