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but usually concluded that about 15 per cent was needed and it may run as high as 30 per cent. The actual percentage was computed based on the plats approved by the Veterans Administration. The cost of the land, improvements, and profit on the land were 12. 4 per cent af the mid point of the pxice range of homes to be cons�ructed on that plat. �'HA £igures for the nation shaw that sites now take li� 1 per cent of the total • cost, up 3 ger cent from 14. 1 per cent in 1957. The availabilit of guitable and reasonabl ric ed land is the rimar ' actor influencin the locational decision of the builder, though most uilders pre er to ocate c ose to existing development, the cost of land and the size of the available parcels are strong factors whic.h cause him to look farther out. Builders follow two general approaches in selecting housing sites. Some builders start with the price range of the home they plan to build and then determine what they can afford to spend on land and land d�velopment costs. Others first look for land suitable for devel�pment and then decide the type of home and price range that fit it. A great deal o.f time and thought is spent in the acquisition of land by some builders , while others buy land at a price they can aff�rd without too much other consideration. Purchases of the latter type become almost a chance situation in some instances. Most medium and small builders purchase or option land one to two years in advance, while the large tract builders may purchase or option it up to five years in ad- vance. All builders probably prefer to buy the land far in advance of construction but cannot afford to tie up the capital. The price range and the number of hor�►es influences the builder's flex- ibilit in his 1.ocational decisions. The general acceptance by the buying public o on-site wel s and sewage disposal systems, ho��ever, has given the builder in this Metropolitan Area great�r freedom of choice than in other parts of the country. �n the semi�arid and arid regions of the west, home building without a public water system is almost impossible. The ready accessibility of a water source clos� to the surface has made scattered development feasible here. Tract builders, those buildin over 100 homes a ear mostl in the under 0, 000 market, are the most sensitive to land costs and seek the ' east expensive land. This segment o the building industry is highly competitive and a high volume of sales must be maintained in order for the entire venture to show a reasonable profit. By obtaining land at a ' lower price and acquiring better prices on construction material through quantity buying, the builder is in a position to offer the most house for the money. The large builder often pioneers in developing new areas to obtain lower land prices and to a cquire land in large enough parcels to create a favorable physical environment for the subdivision. The more land holders that hav� to be dealt with, the more the cost of land assembly will be. Therefore, land assembly along v��ith land price are very crucial factors in the consideration of location rom the tract builder's standpoint. 13 Ibid. 25