Master-Planned Communities See Sales Decline
(Courtesy RCLCO, Bethesda, Md.)
RCLCO, Bethesda, Md., reported master-planned communities–just like the broader U.S. housing market–saw a decline in home sales last year compared to 2021.
“The second half of the year in particular saw significant declines, correlated with rising interest rates,” said RCLCO Principal Karl Pischke. Top communities sold nearly 13% fewer homes in second-half 2022 than in the first half, he said.
But Pischke noted master-planned communities have historically increased their overall market share in times of economic turmoil, because consumers believe the quality of such communities provides some insulation from broader market trends. “As such, optimism from MPC developers remains, even if additional softness in the market might be expected in the near-term,” he said.
The report said sales are down 20% from last year among the top-selling master-planned communities in the country, as rising interest rates and economic uncertainty continue to unsettle consumers.
Other findings include:
• Rising interest rates and affordability issues, particularly in the second half of the year, had a significant impact on visitor traffic and new sales.
• Sales in second-half 2022 were 13% lower than the first half of the year, further highlighting the struggles faced by buyers as mortgage rates peaked above 7% in October.
• The Villages active-adult community is once again the top-selling community in the nation with 3,923 sales in 2022, a 2% decline from its record-setting 2021 pace.
• Lakewood Ranch in Sarasota, Fla., ranked second and is the top-selling multi-generational community in the country, with 1,846 sales.
• Hutson Cos. Silverleaf community near Jacksonville, Fla., ranked third with 1,034 sales in 2022, an 11% increase over 2021.
• Southwest Florida’s Babcock Ranch ranked within the top five for the first time with a 31% increase in sales.
• Houston was the top-performing metropolitan area with 13 master-planned communities in the top 50, representing nearly 6,000 sales, or almost 19% of all sales among ranked master-planned communities.
• Florida represented nearly 46% of sales among ranked communities, followed by Texas at nearly 30%.
This initiative exists not only as a way to commend the most successful communities in the country, but also as a tool for monitoring the overall health of the for-sale housing industry, and a means of highlighting the trends affecting communities large and small. This process also serves as a mechanism through which to learn development best practices and pass along lessons gleaned from the MPCs that have pioneered their way into the top ranks.
