Home builders occasionally find it attractive to create their own neighborhood. The buy a large tract of land and subdivide it into house lots. Once they get approval from local government, they can then build roads, community buildings and parks. They then advertise with local real estate agents and let them know there is a new area for custom built homes opening up. For small construction companies, this is an investment in future employment and profits.
Many small construction companies build homes. They often have dry spells where they have no clients. Some of these small companies find construction work to keep up their base expenses, but there is little profit. They cannot invest in new machinery or workers when they can barely keep up with the current bills. Creating a new neighborhood is a way to attract new business. It takes a large amount of money at the beginning, but the profits are often well worth the investment.