D
espite challenges from election uncertainty, hurricanes, and sticky mortgage rates, the top-selling master-planned communities (MPCs) in the US maintained a strong sales pace. According to RCLCO Real Estate Consulting's bi-annual survey of the top 50 MPCs, new home sales were only 2% lower than those of the top-performing communities in 2023.
This resilience is a testament to the enduring appeal of Master-Planned Communities, even in uncertain economic times. "Master-planned communities remain a haven for consumers amid elevated interest rates and economic uncertainty," said Gregg Logan, Managing Director at RCLCO. Sales among top-MPCs were just 2% lower compared to sales in 2023, a positive sign given the headwinds experienced in 2024.
Key takeaways from this year's results include:
* New home sales among the 50 Top-Selling Master-Planned Communities were 2% below the pace set by top communities in 2023.
* Limited resale inventory and elevated mortgage rates continue to make new homes an attractive option for consumers, particularly with builders offering incentives.
* The Villages active adult community was once again the top-selling community in the nation, followed by Lakewood Ranch in Sarasota, Florida, and Cadence in Henderson, Nevada.
The Houston MSA remained the top-performing metropolitan area, with 12 communities in the Top 50 representing over 7,500 sales. The state of Florida represented 38% of sales among ranked communities, followed by Texas at 35%.
RCLCO expects gradually declining mortgage rates to raise 2025 home sales moderately above the 2024 pace, assuming continued low unemployment, rising wages, and builder incentives.
The national survey of master-planned communities has been conducted since 1994, identifying the top-selling MPCs through a rigorous search of high-performing communities. The ranking is based on new home contracts, net of cancellations, as reported by each individual community.
"New home sales in master-planned communities represent only 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," said Karl Pischke, Principal at RCLCO. Despite higher-for-longer-than-anticipated mortgage rates, the consistency in performance among top-selling MPCs results from strong underlying demographics and domestic migration trends across the country.
About RCLCO Real Estate Consulting
Since 1967, RCLCO has been a leading real estate consulting firm, providing strategic and tactical advice to developers, investors, and other stakeholders. With offices in six locations across the US, RCLCO offers an array of consulting services across real estate economics and management consulting.
