RCLCO: Master-Planned Communities Sales Decline
(Illustration courtesy of DA 28/pexels.com)
House sales in master-planned communities declined at mid-year in part due to heightened economic uncertainty and weak consumer sentiment, according to RCLCO Real Estate Consulting’s latest Master-Planned Communities Report.
“Master-Planned Communities were not immune to broader housing market declines, but many were more resilient [than the broader new-home market] in the face of economic uncertainty and continued affordability challenges,” RCLCO said in the report.
The survey found new home sales among the 50 top-selling master-planned communities declined by 6.6% compared to the pace set in early 2024, similar to the broader new home market nationally.
“Despite near-term headwinds, master-planned communities remain a ‘haven’ for consumers amid elevated interest rates and economic uncertainty,” RCLCO Principal Karl Pischke said. “Same-store sales of top-MPCs remain ahead of the broader new home market, a positive sign given the economic and political headwinds experienced in the first half of the year.”
Key takeaways from the report include:
• New home sales among the 50 top-selling master-planned communities were down 6.6% at the end of June compared to the pace set by top communities in the first half of 2024.
• Economic uncertainty, weak consumer sentiment, and continued affordability challenges are contributing to a cooling new home market.
• The broader new home market experienced a similar decline, with sales of new single-family houses in the United States at a seasonally adjusted annual rate of 627,000 in June, representing a 6.6% decline from June 2024.
• Existing home sales have similarly fallen more than expected in June, to a seasonally adjusted annual rate of 3.93 million units, which is the lowest level since September 2024.
• The Villages is once again estimated to remain the top-selling community in the nation as it continues to attract retiree buyers to central Florida, while also expanding its offering as the new all-ages neighborhood of Middleton helps to address the housing needs of working families.
• Sarasota, Florida’s Lakewood Ranch claimed the number two spot overall with 1,185 sales. Cadence in Henderson, Nevada earned the third-place rank with 722 sales through the mid-year. While both communities are seeing a slight decline in sales compared to the first half of 2024, each continue to outperform the broader new home market.
• The Houston metro is once again the top-performing metropolitan area with 11 communities in the top 50, representing 3,666 sales, or 22% of all sales among ranked MPCs.
• The state of Florida represents 41% of sales among ranked communities, followed by Texas at 34%.
Gregg Logan, managing director at RCLCO, noted that new home sales in master-planned communities represent just a fraction of total sales in the country, “but the trends and patterns we see there tell us a lot about the state of the housing market overall,” he said.
