Final answer:
In the construction of a new housing development, the factor of production categorized as land refers to the actual physical space and natural resources used for building the houses.
Step-by-step explanation:
In the context of a new housing development, the factor of production that can be categorized as land would be natural resources such as the actual physical space where the houses will be built and any pre-existing natural materials used in the construction. This does not include the people working on the development (labor), the bike paths and stores (capital), the solar power installations (can be considered a mix of natural resources and capital depending on context), or the idea to develop the housing community (entrepreneurship).
The cost of the land is a vital consideration, particularly in terms of its location's profitability for industrial purposes. If the raw materials needed at the site are inexpensive to transport or abundantly available, the factory has more location options. However, often land close to city centers is too costly due to high demand and limited availability, leading to industrial sites being established on the outskirts of cities where land is more plentiful and affordable.