Residential development

Residential development is real estate development for residential purposes. Some such developments are called a subdivision, when the land is divided into lots with houses constructed on each lot. Such developments became common during the late nineteenth century, particularly in the form of streetcar suburbs.

In previous centuries, residential development was mainly of two kinds. Rich people bought a townlot, hired an architect and/or contractor, and built a bespoke / customized house or mansion for their family. Poor urban people lived in shantytowns or in tenements built for rental. Single-family houses were seldom built on speculation, that is for future sale to residents not yet identified. When cities and the middle class expanded greatly and mortgage loans became commonplace, a method that had been rare became commonplace to serve the expanding demand for home ownership.