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Record Sales of New Homes in Master-Planned Communities

In a remarkable turn of events for the residential real estate market, the top 50 master-planned communities in the United States successfully moved 24,000 new homes in 2024. This figure marks a slight decline from 25,000 sales in 2023 but remains a significant achievement, indicating resilience in a fluctuating market.

According to John Burns Research and Consulting, the communities in this prestigious list demonstrated strong performance by each selling at least 371 new homes throughout the year. This achievement is noteworthy as it stands as the third-highest sales threshold recorded in the firm’s 14-year survey history. The top year ever was 2021, with sales reaching an impressive 460 homes per community.

Despite facing economic headwinds, including rising mortgage rates and a limited supply of developed lots, master-planned communities have continued to attract buyers through strategic management and thoughtful development. Ken Perlman, Managing Principal at John Burns Research and Consulting, emphasized that these communities are increasingly focusing on enhancing residents' quality of life through features that promote health, wellness, and sustainability. This includes the integration of extensive trail systems, community farms, and designs that support resilience against climate change.

Factors Driving New Home Sales

Several key factors contributed to this year's solid performance in the master-planned segment:

1. Lifestyle Offerings: Today’s master-planned communities are not just about limited housing options; they are designed to enhance quality of life. Their appeal is bolstered by high-quality amenities, safe environments, various housing options, and community-centric planning that prioritizes convenience and leisure.
2. Incentives for Buyers: Following a rapid increase in mortgage rates in late 2022, builders adjusted their sales strategies. They began to offer rate buydowns to lower monthly payments for potential buyers, tapping into this method as a pivotal aspect of their 2024 marketing efforts.
3. Access to Developed Land: The residential land market continues to grapple with a shortage of developed lots. However, master-planned communities offer builders ready access to lots with established infrastructure. This advantage, paired with an intent focus on lifestyle offerings, resulted in stable sales and deliveries for participating builders in 2024.

Yearly Sales Insights

While the total homes sold in 2024 is slightly below the past year, it still reflects the dynamics of a recovering market. The sales from the top 50 master plans in 2024 are notably lower than the 31,000 sales benchmarked in 2019, a year noted for normal housing demand before the pandemic altered market trends. Sales peaked during 2020 and 2021, driven by strong demand spurred by the pandemic, migration, and work-from-home flexibility.

Conclusion

The performance of the top master-planned communities serves as a testament to the evolving landscape of the housing market. As they adapt to economic fluctuations, their focus on lifestyle enhancements and community-driven planning appears to be a successful formula for attracting homebuyers. With ongoing challenges in the market, it will be interesting to see how these developments continue to adapt and thrive in the coming years.

For additional information on the success and strategies of the top master-planned communities, visit John Burns Research and Consulting’s site.