Master-Planned Communities Show Resilience Amid Economic Challenges, RCLCO Reports

The latest mid-year survey from RCLCO Real Estate Consulting reveals that new home sales in the 50 top-selling master-planned communities (MPCs) of 2024 have remained relatively stable. The survey found that these MPCs experienced a decline of less than 1% in sales when compared to the top-selling communities of mid-year 2023.

Gregg Logan, Managing Director at RCLCO, attributed the continued demand for MPCs to the appeal they hold for consumers in the current economic climate. “Master-Planned Communities remain a ‘haven’ for consumers amid elevated interest rates and economic uncertainty,” said Logan.

The survey data also showed that sales among the top MPCs outperformed the broader new home market. In the first half of 2024, sales of single-family homes nationally were 1.1% lower compared to the same period in 2023.

RCLCO’s survey identified Florida’s Lakewood Ranch as the top-selling all-ages community in the country, with 1,238 sales. The firm also estimated that The Villages continues to hold the title of the top-selling community overall, largely due to its sales to 55+ buyers.

In addition, the survey found that the Houston MSA was the top-performing metropolitan area, with 13 communities making the Top-50 list. Collectively, these 13 communities accounted for over 4,500 sales, or nearly 24% of all sales among the ranked MPCs.

The state of Texas emerged as a major player in the master-planned community market, with the state representing about 39% of sales among the top 50 communities. Florida followed closely behind with 36%, while Nevada and South Carolina accounted for 11% and 6% of sales, respectively.

RCLCO has been conducting its national survey of master-planned communities since 1994. The firm identifies the top-selling MPCs through a comprehensive analysis of new home sales, as well as a review of the broader for-sale housing market.

Karl Pischke, Principal at RCLCO, noted that while new home sales in MPCs represent a small portion of the overall market, the trends observed in these communities can provide valuable insights into the health of the housing market.

“Despite the current interest rate environment and softening builder sentiment in the near-term, the long-term strength of new home sales results from strong underlying demographics, particularly millennial households in their prime home buying years as well as retiring boomer households, and domestic migration trends across the country,” said Pischke.