The Top 50 Master Plans Sold Over 34,000 New Homes in 2023
In 2023, master-planned communities (MPCs) saw robust new home sales despite mortgage rates nearing 8%, economic uncertainty, and a return to seasonal trends. The 500+ communities we surveyed attracted buyers with appealing lifestyles, featuring community amenities, excellent schools, and diverse housing options.
John Burns Research and Consulting commends the management teams of the top 50 master-planned communities, each of which sold at least 368 new homes during the year. This performance is the third highest in our 13-year survey history, behind the record 460 sales needed to secure a top 50 position in our 2021 rankings.
According to John Burns, three factors contributed to higher new home sales in master plans.
- Lifestyle: Master plans offer numerous features that make them premium choices for prospective home buyers, including high-quality amenities, good schools, security, varied home selections, and intentional and cohesive 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.
- Lot inventory: Master-planned communities provided builders with a runway of lots and the opportunity to build homes in highly desired communities. Improved new home sales in 2023 had builders scrambling to secure replacement lots and open new communities. The master plans’ lot supply also supported builders’ shift to offering additional quick-move-in homes to capitalize on the low resale supply.
- Builders’ incentives: Builders’ full-term rate buydowns supported 2023 sales by countering elevated mortgage rates, which is especially helpful for first-time buyers. In 3Q23, just 13% of surveyed builders reported not using rate buydowns, shrinking from 46% of builders in 3Q22. Many builders confirm that flexible incentives, or “flex cash,” are also very helpful, mainly appealing to move-up and luxury buyers.