Both prior answers are correct. Another reason other than room and the financial viability for a builder is that in areas where there is room, public sewers may not be available. MAJOR issue for a bulder. In Hunterdon County the access to public sewers is really very limited to areas around Flemington (built up already), Lambertville (new townhouses in Lambert Hill built by Orleans), Clinton and a few areas. In Somerset, public sewer access is less limited but so is the acreage to build. Many builders are in hibernation right now due to the market conditions.
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