Reversing a Trend, Master-planned Communities See Softening Demand, Data Shows
Originally published on Janaury 10, 2023 by Michael Tucker for the Mortgage Banker's Association.
RCLCO, Bethesda, Md., reported master-planned communities–just like the broader U.S. housing market–saw a decline in home sales last year compared to 2021.
“The second half of the year in particular saw significant declines, correlated with rising interest rates,” said RCLCO Principal Karl Pischke. Top communities sold nearly 13% fewer homes in second-half 2022 than in the first half, he said.
But Pischke noted that master-planned communities have historically increased their overall market share in times of economic turmoil because consumers believe the quality of such communities provides some insulation from broader market trends. “As such, optimism from MPC developers remains, even if additional softness in the market might be expected in the near term,” he said.
The report said sales are down 20% from last year among the top-selling master-planned communities in the country, as rising interest rates and economic uncertainty continue to unsettle consumers.