Understanding Land Development Costs in Texas: What to Expect

Land development is an exciting opportunity, whether you're planning a commercial project, a residential subdivision, or a strategic investment. But before breaking ground, it’s important to understand the costs involved and how different approval processes can impact your timeline and budget.

We help landowners and developers navigate the complexities of Texas land development with expert planning and strategic solutions. Here’s what you need to know about the costs and approvals that come with developing land in Texas.

Key Costs Associated with Land Development in Texas

1️⃣ Land Acquisition Costs

The price of land depends on factors like location, zoning, and accessibility. Urban areas and high-growth regions tend to have higher prices, while rural areas often offer more affordability and flexibility.

2️⃣ Site Preparation & Infrastructure

Preparing land for development includes:

✔ Clearing & Grading – Ensuring the land is build-ready

✔ Utilities Installation – Connecting to water, sewer, and electricity

✔ Drainage Systems – Meeting local stormwater management regulations

3️⃣ Permitting & Approval Costs: City vs. County

Every development requires permits, but the process differs depending on whether your land is inside a city’s jurisdiction or in an unincorporated county area.

City Approvals & Costs

Developing within a city often involves structured reviews to ensure compliance with zoning and infrastructure standards. These may include:

✔ Zoning & Land Use Permits – If rezoning is required, applications and reviews can range from $500 to $5,000.

✔ Site Development Permits – Detailed engineering and site plans may cost $2,000 to $15,000.

✔ Impact Fees – Fees to support public infrastructure may add $5,000 to $25,000+ per acre.

County Approvals & Costs

Counties typically have fewer regulations than cities, but approvals are still required:

✔ Subdivision Approvals – If dividing land into multiple lots, expect fees from $1,000 to $10,000.

✔ Septic & Well Permits – In areas without city utilities, installing private systems may cost $5,000 to $15,000.

✔ Road & Access Permits – If county roads are impacted, permits may range from $500 to $5,000.

4️⃣ Engineering, Design & Environmental Considerations

✔ Site Planning & Engineering – Professional services for land use planning and compliance can range from $10,000 to $100,000, depending on project complexity.

✔ Floodplain & Environmental Assessments – Required for some areas, adding $3,000 to $15,000.

✔ Traffic Impact Analysis – For larger developments, these studies may cost $5,000 to $50,000.

5️⃣ Construction & Infrastructure Development

✔ Roads & Sidewalks – Some cities require sidewalks, adding $100,000+ per mile.

✔ Stormwater Management – Detention ponds or drainage systems may cost $10,000 to $100,000.

✔ Utility Extensions – If water and sewer lines need to be extended, costs can range from $20,000 to $200,000+.

Smart Planning Leads to Cost Savings

Every land development project is different, and costs can vary based on location, property size, and intended use. The key to a successful project is early planning and expert guidance.

We work with landowners, developers, and businesses to streamline approvals, optimize site plans, and ensure a smooth development process.

Let’s Plan Your Project the Right Way!

Whether you're in the early stages or ready to move forward, we’re here to help. Contact us today to discuss your project and create a plan that maximizes your land’s potential!

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Hutson Land Planners & Development Consultants, LLC provides expert guidance in land planning, right-of-way acquisitions, and real estate litigation support across Texas. With decades of experience, we help landowners, developers, and municipalities navigate complex land use challenges with smart strategies and proven results. Need expert advice on your next project? Contact us today and let’s build something great together!