Despite challenges associated with election uncertainty, hurricane and severe weather impacts, and “sticky” mortgage rates, sales among the Top 50 MPCs were just 2% below the pace set by the top-performers of 2023, a testament to the continued appeal of Master-Planned Communities.
BETHESDA, MD., January 7, 2025 —
Leading advisory firm RCLCO Real Estate Consulting, an advisory firm focused on the real estate industry, has released the results of their bi-annual survey of the top-selling master-planned communities (MPCs) of 2024. The survey shows that new home sales among the 50 Top-Selling Master-Planned Communities remained relatively steady, declining by about two percent compared to the top-selling communities of 2023.
“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 economic, political, and even physical 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, a sign of resilient demand despite headwinds that included election uncertainty, hurricane impacts, “sticky” mortgage rates and continued affordability challenges.
- Limited resale inventory and the “lock-in” effect caused by elevated mortgage rates continue to make new homes an attractive option for consumers, particularly with builders willing to offer incentives.
- The Villages active adult community is once again the top-selling community in the nation with 3,208 sales, including sales in the new all-ages Middleton neighborhood.
- Sarasota, Florida’s Lakewood Ranch claimed the number two spot overall with 2,110 sales. Cadence in Henderson, Nevada earned the third-place rank with 1,386 sales in 2024, a 44% increase over 2023.
- The Houston MSA was once again the top-performing metropolitan area with 12 communities in the Top 50, representing over 7,500 sales, or 22% of all sales among ranked MPCs.
- The state of Florida represented 38% of sales among ranked communities, followed by Texas at 35%.
- While mortgage rates have remained higher for longer than anticipated, RCLCO expects gradually declining rates will raise 2025 home sales moderately above the 2024 pace, assuming continued low unemployment, rising wages, and builder incentives.
RCLCO’s national survey of master-planned communities has been conducted since 1994, and it identifies 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 and establishes updated rankings from the previously released 2024 mid-year update report. This initiative exists not only to commend the most successful communities, but also as: a tool for monitoring the overall health of the for-sale housing industry; a means of locating markets with residential momentum; a process for highlighting trends affecting communities; and a medium through which to learn development best practices.
“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, particularly millennial households in their prime home buying years as well as retiring boomer households, and domestic migration trends across the country.”
About RCLCO
Since 1967, RCLCO has been the “first call” for real estate developers, investors, the public sector, and non-real estate companies and organizations seeking strategic and tactical advice regarding property investment, planning, and development. RCLCO leverages quantitative analytics and a strategic planning framework to provide end-to-end business planning and implementation solutions at an entity, portfolio, or project level. With the insights and experience gained almost six decades and thousands of projects, RCLCO brings success to all product types across the United States and around the world. RCLCO is organized into three overlapping and reinforcing service areas: real estate economics, management consulting, and advisory services for institutional investors through RCLCO Fund Advisors. RCLCO is headquartered in Bethesda, MD and has offices in Austin, TX, Denver, CO, Los Angeles, CA, New York, NY and Orlando, FL.
Media Contact
Rachel Hoeft
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E: rhoeft@rclco.com
