Top master plans experienced healthy sales paces despite new home market headwinds.
IRVINE, Calif., Jan. 8, 2025 /PRNewswire/ — John Burns Research and Consulting congratulates the management teams behind the top 50 master-planned communities, which each sold at least 371 new homes per community in 2024. This achievement marks the third-highest threshold in our 14-year survey history, trailing the record 460 sales required for our top 50 ranking in 2021. We surveyed over 500 communities to compile this year’s ranking. Click here to see our top 50 list for 2024.
3 main factors drove new home sales trends within master-planned communities
1. Lifestyle
Master plans offer numerous features that make them premium choices for prospective homebuyers, including:
“Master-planned communities are increasingly prioritizing health, wellness, and sustainability, integrating features like extensive trail systems, community farms, and resilient designs to enhance residents’ quality of life,” said Ken Perlman, Managing Principal at John Burns Research and Consulting
2. Builders’ incentives
After mortgage rates rose sharply in the fourth quarter of 2022, many builders began experimenting with rate buydowns to attract buyers with lower monthly payments. This approach gained traction as builders refined their use of buydowns, making them a central component of their 2024 sales strategies.
3. Land availability and strategy
The low supply of developed residential land remains a major bottleneck in the new home market. In our second quarter 2024 Residential Land Survey, 72% of top residential land brokers signaled that the developed lot and land supply is somewhat to much lower than normal in desirable suburban locations. However, master-planned communities give builders access to a runway of developed lots with infrastructure in place and predictable delivery schedules. With developers focused on sustaining lot supplies and promoting a desirable lifestyle, participating builders generated steady home sales and deliveries in 2024.
2024 master-planned community sales compared to prior years
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Over 24,000 home buyers purchased new homes in the top 50 master plans in 2024, a -1% decrease from 25,000 in 2023.
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The 24,000 sales in 2024 trails 31,000 in the top 50 list for 2019, a year we benchmark for normal, pre-pandemic housing demand.
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Top 50 master plan sales peaked at 37,000 in 2020 and 36,000 in 2021, driven by pandemic-fueled housing demand, migration, and work-from-home flexibility.
About John Burns Research and Consulting
John Burns Research and Consulting is a leading provider of research and consulting services for the US housing industry. With over 20 years of experience, the company provides in-depth research and analysis on trends, market conditions, and consumer preferences across 4 major areas: residential for sale, residential for rent, building products, and consumer and design trends.
The company’s clients include some of the largest homebuilders, lenders, and investors in the US. Visit www.jbrec.com.
Contact:
Kathy Lyford klyford@jbrec.com (760) 203-3853
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SOURCE John Burns Research and Consulting