Master-planned communities see rising popularity despite land constraints

Homebuyers seeking convenience and community are increasingly turning to master-planned communities (MPCs). The Villages, known as the fastest-growing and largest MPC in the United States, exemplifies this trend. Once a simple trailer park in the 1970s, it is now a sprawling 57-square-mile community that has gained attention for its rapid growth.

Gary Kutella, a resident of The Villages, shared his experience with Realtor.com. He recounted concerns from his son about moving there but decided to embrace "Florida's Friendliest City" due to its sense of community and convenience. Kutella stated that rumors did not concern him and his wife as they were drawn to what the area offered.

Developers of MPCs aim to provide residents with amenities such as grocery stores, restaurants, hiking trails, gyms, swimming pools, golf courses, and more within close proximity. Despite high mortgage rates leading to a slight 2% decrease in sales year over year among the top 50 MPCs in the country, there were still 35,000 home sales recorded last year.

Brett Dietz from KB Home’s Houston division highlighted Sunterra's offerings: “Homebuyers have the opportunity to build a new personalized KB home at an affordable price in a community that offers an abundance of amenities." These include resort-style pools and planned developments like a crystal lagoon.

Builders faced challenges last year due to elevated mortgage rates and rising supply. Cara Lavender from JBREC noted these factors but also acknowledged continued interest in MPCs. Land availability may affect future development; however, Southern California faces limited land supply while Texas has ample availability.

Florida emerged as a significant hub for MPC sales despite weather-related issues. Six out of ten top spots on the list belong to Florida locations like Tampa-Clearwater and Orlando-Kissimmee. Realtor.com economist Joel Berner commented on new construction trends favoring these models in areas with high activity levels.

Lavender expressed optimism about MPCs' appeal across diverse demographics—from active adults seeking like-minded communities to first-time buyers interested in health-focused living options—enhancing their desirability further into younger generations valuing sustainability efforts.

While rentals weren't included within this report scope directly according CEO John Burns sees potential growth opportunities here too; two out five developers are incorporating build-to-rent components into plans already underway according Lavender who cited consulting team's successful feasibility studies supporting such endeavors