Top 50 Master Plans Sell Over 34,000 New Homes in 2023 despite Affordability Challenges
In an impressive display of resilience, master-planned communities sold over 34,000 new homes in 2023—despite near-8% mortgage rates, economic uncertainty, and the return of seasonality.
IRVINE, Calif., Jan. 8, 2024 /PRNewswire/ -- John Burns Research and Consulting congratulates the management teams behind the top 50 master-planned communities, which sold at least 368 new homes per community during 2023. This achievement marks the 3rd-highest threshold in our 13-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 2023.
3 factors supported higher new home sales in master plans in 2023
Lifestyle: Master plans offer numerous features that make them premium choices for home buyers, including high-quality amenities, good schools, security, varied home selections, and thoughtful planning that improves the quality of life. Ken Perlman, a national master-planned community expert and Head of Consulting in the West for John Burns Research and Consulting, explains:
"Master-planned communities continue to attract buyers and outperform the overall new home market by offering a lifestyle, which elevates and links a collection of neighborhoods. With multiple builders offering an array of home types and floor plans, buyers can find homes that fit their life stage. The thoughtful design and selection of community amenities contribute to the appeal for buyers."
Lot inventory: Master-planned communities provided builders with lots and the opportunity to build homes in highly desired communities. Increased sales in 2023 caused a scramble to secure replacement lots and new community sites. Master plan lots also supported builders' shift to offering more quick-move-in homes to capitalize on the low resale supply.
Builder incentives: Full-term rate buydowns boosted 2023 sales by countering elevated mortgage rates. In 3Q23, just 13% of surveyed builders reported not utilizing rate buydowns, shrinking from 46% of builders in 3Q22.
2023 master-planned community sales compared to prior years
- Over 34,000 home buyers purchased new homes in the top 50 master plans in 2023, a 24% increase from 28,000 in 2022.
- The 34,000 sales in 2023 surpasses the 31,000 sales in the top 50 list for 2019, a year we benchmark for normal, pre-pandemic housing demand.
- Top 50 master plan sales peaked at 37,000 in 2020 and 36,000 in 2021, due to pandemic-fueled housing demand, migration patterns, 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 four major areas: residential for sale, residential for rent, building products, and consumer and design trends.
The company's clients include some of the largest home builders, lenders, and investors in the US. Visit www.jbrec.com.
Contact:
Richard Mones [email protected] (949) 870-1222
9140 Irvine Center Drive, Suite 200, Irvine, CA 92618
SOURCE John Burns Research and Consulting
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