We rather expected this when we bought the house, but it's still a little disappointing...
Our townhouse is sort of on the edge of the community. We have an end unit, and next to us on the open side is a horse farm. Behind us WAS just a big hill. We were hopeful that we were wrong, but we were pretty sure they would probably be building a house on the top of that hill. A week or so ago, we heard a couple fireworks go off right in that direction and thought, "Uh oh, they're about to break ground on the new house!" We were right. It's really not that big of a deal, but it certainly cuts down on our privacy! They way everything is situated, I think we'll feel a bit like the "little" folks, being looked down upon from the big house on the hill (it's going to be a McMansion.)
They've started work.
For a little perspective, the view including our backyard fence. The horse farm is behind the trees in the bottom photo and you can just make out the framing at the top of the hill in the top picture. These pictures were taken a few days ago, and now they've already built the second story. You can see it sort of looming over our house from the front as you pull up now.