They are building 3 new single family homes right behind us. They recently sold 3 new ones and as they sell one they start another. So they are building again but cautiously. The days of building an entire subdivision first and selling it later are gone.
Same is happening behind us....but, they are CHEAPER spec homes OR being built FOR a particular buyer.
Unless they have a buyer lined up with an approved mortgage or are financing the construction costs themselves then no one is going to loan them a red cent towards speculation builds now.
It use to be you could get financing for an entire subdivision easier than a duplex it seemed, now its darn near impossible to get a building loan even when you own the land outright and have 15% to put towards it.