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The article examines current issues of rational land use in the design of individual residential houses under modern settlement development conditions. Changes in land use structure associated with the reduction of plot sizes and increasing building density are analyzed. Particular attention is paid to the formation of modern street and road networks, engineering preparation of territories, stormwater drainage systems, and the development of residential settlement infrastructure. The necessity of an integrated approach to territorial development before land allocation is substantiated. Recommendations aimed at improving architectural and planning solutions for enhancing the quality of the residential environment and ensuring sustainable development of settlements are proposed.