Installing a Fence Before the Neighbor's House is Finished? Read This First

The Scenario

A homeowner recently asked:

"Should I wait on privacy fence?"

The GardenOwl Diagnosis

The Assessment

You are living in a fishbowl. Your house is finished, your lawn is green, but the lot next door is a chaotic mess of red dirt, excavators, and contractors staring right into your living room. This severely impacts your home's curb appeal. You want a privacy fence, and you want it yesterday, but acting before the neighbor's final grade is established risks triggering The Hydraulic Dam Syndrome. The neighbor's house is mostly up, but the ground is still raw earth. You have about three feet of easement between where you want the fence and their property line. The burning question is: Do you pull the trigger now, or do you have to wait for them to lay their sod?

The Trap

If you build that fence today, you are gambling with drainage, and the house always wins.

Here is the reality of new construction: builders move dirt until the very last second. Right now, that dirt looks flat, but it isn't the final grade. Between two houses, code almost always requires a "swale"—a shallow ditch that directs rainwater from both roofs out to the street or a storm drain.

If you install a fence based on the current dirt level, you risk two major disasters. First, the builder might come in, grade the soil up against your fence, and bury the bottom of your pickets. This rots the wood and voids your warranty. Second, you might accidentally create a dam. If you block the natural flow of water before the swale is cut, you could flood your own crawlspace or the neighbor's foundation. As I mentioned in Why Your Brick Wall is Wet, trapping moisture against structures is a fast track to expensive repairs.

The Solution: Wait or Elevate

The best advice is to wait. I know it hurts to have zero privacy, but waiting three weeks for the final grade is cheaper than rebuilding a rotted fence in three years. However, if you absolutely cannot wait, you need to build defensively.

1. The "Rot Board" is Mandatory

If you build now, do not run your pickets into the dirt. Use a 2x6 or 2x8 pressure-treated kickboard (rot board) at the bottom. This is a sacrificial piece of lumber that touches the ground so your expensive pickets don't have to. When the builder next door inevitably piles dirt against it, only the cheap board rots, and you can swap it out in five years without dismantling the fence panels.

2. Account for the "Sod Lift"

Dirt is not the final height. Sod comes with about an inch of soil attached to the roots. Once they lay it, the ground level instantly jumps up. If you leave a 2-inch gap now, it becomes a 1-inch gap later. If you leave a 1-inch gap now, your fence is suddenly buried. Aim for a generous 3 to 4-inch gap at the bottom. It looks wide now, but it will shrink when the neighbors finish up.

3. Respect the Swale

Water needs to move. If that side yard is a designated drainage easement, a solid fence can act like a wall for water. Consider a "shadow box" style fence (where pickets alternate on either side of the rail) which allows air and water to pass through more easily than a solid stockade style.

Also, keep an eye on the soil composition. If that red dirt is heavy clay, it won't drain down; it will drain across. According to University of Minnesota Extension, soil structure dictates water movement, and compacted construction clay is notorious for causing standing water issues. Do not block its exit path.

Visualizing the Result

Before you start digging post holes, take a step back. Sometimes a fence isn't the only answer. A fence stops the eye, but it also boxes you in. A mixed shrub border might give you the screening you want without the drainage headaches. Plants are flexible; fences are not.

If you are struggling to picture how a high fence will look versus a green screen in that narrow corridor, use a tool to check your sightlines. You don't want to accidentally create a dark, damp alleyway.

If you want to test this on your own yard, upload a photo of your yard to our Exterior Design App and see what this design would look like in your space. You can toggle between a wooden fence, a living hedge, or a combination of both to see what saves your view without wrecking the drainage.