#United States #Bethesda #RCLCO #Master-Planned Communities #MPC

Resilient MPC Sales Reflect Ongoing Demand

In a recent survey conducted by RCLCO Real Estate Consulting, it has been revealed that despite a myriad of challenges faced last year, sales in Master-Planned Communities (MPCs) have shown remarkable resilience. The 2024 Master-Planned Communities Report, released on January 7, 2025, indicates that sales among the top 50 MPCs were only 2% lower than the previous year's peak performance, maintaining a steady appeal for homebuyers.

Economic uncertainties, like election-related apprehensions, adverse impacts from hurricanes, and high mortgage rates, which tend to dampen the housing market, have not deterred buyers from seeking properties in these communities. According to Gregg Logan, Managing Director at RCLCO, these MPSs have remained a “haven” for consumers, even amid the financial challenges that have persisted.

Key Findings from the 2024 Report

The report highlights several critical trends in the current housing market:

• - New home sales in the listed MPCs were just 2% below the previous year's figures, showcasing resilience in the face of economic adversity.
• - Many potential sellers are opting to stay put due to high mortgage rates, resulting in limited resale inventory. Consequently, this scarcity has made new homes, particularly from builders offering incentives, more attractive.
• - The report crowned The Villages as the leading community in the country with 3,208 sales, illustrating continued interest in active adult living options.
• - Following closely, Lakewood Ranch in Sarasota, Florida, earned the second spot with 2,110 sales, while Cadence in Henderson, Nevada, saw a remarkable 44% increase in sales, securing the third position with 1,386 sales in 2024.
• - The Houston Metropolitan Statistical Area (MSA) stands out as a hotspot with 12 communities in the top rankings and making up 22% of all sales recorded among these communities.
• - Among states, Florida and Texas accounted for 38% and 35% of sales respectively, highlighting the regions' strong housing markets.

Outlook for 2025

Despite the prolonged higher mortgage rates, RCLCO anticipates a modest increase in home sales for 2025, provided certain favorable conditions prevail—namely, stable employment, rising wages, and ongoing builder incentives.

Karl Pischke, a principal at RCLCO, emphasized the importance of understanding trends in MPCs, stating, “New home sales in master-planned communities represent only a fraction of total sales in the country, but the trends tell us a lot about the state of the housing market overall.” The consistent performance of these communities is attributed to strong underlying demographics, including Millennials entering their prime buying years and Baby Boomers looking for ideal retirement options.

RCLCO has been conducting this extensive survey of master-planned communities since 1994, focusing on identifying top-selling MPCs that exemplify robust performance in the housing market. Their thorough approach establishes a rigorous set of metrics to track residential movements and the overall health of the for-sale housing industry in the U.S.

In conclusion, while challenges persist in the broader economic landscape, the ongoing sales strength in Master-Planned Communities highlights a burgeoning demand among buyers seeking quality living environments. This trend could serve as an encouraging sign for the real estate market, reflecting potential growth in the year to come.