New home sales among the “50 Best-Selling Master Planned Communities” increased 7% in the first half of 2023 compared to the same period in 2022, according to a study by RCLCO Real Estate Consulting.
Master-planned communities have gained traction since their invention in the 1960s. Usually built by a developer, they are large, custom-built residential communities that include a number of recreational amenities for residents.
In the sales ranking,a retirement community located in Central Florida, it was the top-selling community in the country, with an estimated 1,960 sales in the first six months of 2023. That was the exact same number of sales recorded right now in 2022.
Floridacame in second with 1,227 sales, an increase of 20% over last year at this time. Sunterra, located just outside of Houston in Katy, Texas, ranked third with 669 sales, a 49% increase in sales from last year.
Dr Hortonfrom the countrynational homebuilder, appeared on the list four times. All of her communities were in Texas. Land Tejas, owned by Starwood Capital Group, was listed three times and was the developer behind Sunterra.
Houston was the best-performing metro area with 14 communities in the Top 50, representing more than 5,000 sales, or nearly 26% of all sales among ranked MPCs. The state of Florida accounted for about 42% of sales among ranked communities, followed by Texas at nearly 38%.
This rebound in MPC sales represents a turnaround, pointing to strength in the new home sales market. Recently, home builders have felt veryand Future construction demand rose to a 12-month high in June due to a weak existing home sales market and low inventory.
Most MPC developers remain optimistic about the second half of 2023, according to RCLCO. despite highand a recession looming, developers are confident that MPCs will maintain their strong appeal to consumers. However, while some builders have withdrawn the incentives, about 60% still use them to stimulate new home sales.
RCLCO has conducted a national survey to identify the top-selling master planned communities (MPCs) since 1994. Each year, the consultancy reports annual sales among the top 50 communities at the end of the year and publishes its mid-year update in July.