HOUSTON – (By Dale King, Realty News Report) – Texas and Florida have long been rivals in the annual race to feature among the Top 50 Master-Planned Communities (MPCs) in the nation, according to a new-home sales analysis by RCLCO, a real estate consulting firm.
“Home sales in the nation’s Top 50 MPCs exceeded expectations in the first half of 2021, with a pace that indicates the potential for a 12% increase at year’s end compared with 2020,” notes RCLCO’s mid-year report by Gregg Logan, managing director, and Karl Pischke, vice president.
Fueled by low mortgage rates and increased demand from Millennials, home construction activity was strong in 2021. Builders across Texas and the rest of the country reported shortages of lots and building materials, and some communities have long waiting lists.
When RCLCO released its mid-2021 national survey of the top-selling MPCs, Texas and Florida dominated the list and remained close in total representation.
10 Houston Master-Planned Communities in the Top 50
Houston was the biggest local winner among metro areas, placing 10 of its master-planned communities in the Top 50 — capturing 20 percent of the available spots.
Overall, RCLCO found 10 MPCs from the Houston area, seven from Dallas, and one each from El Paso and Austin, for a Texas total of 19 communities in the Top 50. That outpaced Florida, which placed 13 MPCs on the list.
Despite Texas’ showing, Florida — with support from Nevada — accounted for a large share of sales. RCLCO reports that 75% of sales within the Top 50 occurred in Florida, Texas and Nevada. Florida led in total sales with 34%, followed by Texas with 30%.
Florida also produced the top two selling communities: Lakewood Ranch in Sarasota led with 1,535 sales (an 83% increase), followed by The Villages at 1,226 sales. Third place went to Summerlin, the Howard Hughes development in Las Vegas. The highest-ranking Texas community was Mission Ridge in El Paso, developed by Hunt Communities, which sold 466 units in the first half of 2021.
Balmoral No. 1 in Houston; Bridgeland No. 2
The highest-ranked Houston community was Balmoral, at number 11 nationally, with 458 sales in the first half of 2021 versus 409 in the same period of 2020. Balmoral, a northeast Houston project developed by Land Tejas, features a two-acre crystal-clear lagoon that likely contributed to its strong performance and helped it edge out Bridgeland, which had previously been Houston’s top seller.
Houston Leaders
Other Houston-area MPCs and their national rankings for the first six months of 2021 include:
- Bridgeland, Cypress — number 13. Bridgeland sold 440 new homes in H1 2021 versus 425 in H1 2020; developed by Howard Hughes Corp.
- Tamarron, Katy — number 16. Tamarron sold 407 homes so far this year versus 327 at midyear 2020; built by D.R. Horton.
- Sierra Vista/Sterling Lakes, Arcola — number 19. Sold 397 homes in H1 2021 versus 261 in H1 2020, a 52% increase; developed by Land Tejas.
- Sienna, Missouri City — number 25. Sienna recorded 344 sales this year versus 298 last year; developed by Johnson Development and Toll Brothers.
- Lago Mar, Texas City — number 35. Lago Mar sold 297 homes in H1 2021 versus 216 in H1 2020; developed by Land Tejas.
- Breckenridge Forest, Spring — number 36. Built by D.R. Horton, it sold 290 units this year and reached the Top 50 for the first time.
- Meridiana, Rosharon — number 38. Developed by Rise Communities, Meridiana sold 285 homes in H1 2021 versus 157 in H1 2020, an 82% increase.
- Cross Creek Ranch, Fulshear — number 41. Built by Johnson Development Corp., it recorded 282 sales this year versus 230 at midyear 2020.
- Woodforest, Montgomery — number 48. Also developed by Johnson Development Corp., Woodforest sold 265 homes in the first half of 2021.
Other Top 50 Texas Communities
- Woodcreek, Fate (Dallas metro) — number 29. Developed by SouthStar Development and PMB Capital; 322 sales in H1 2021.
- Santa Anita Ranch, Liberty Hill (Austin metro) — number 32. Built by Mariner Real Estate; 307 sales so far this year.
- Wildcat Ranch, Crandall (Dallas metro) — number 38. Developed by Sessions Development and PMB Capital; 285 sales in H1 2021.
- Harvest, Argyle (Dallas metro) — number 40. Developed by Hillwood Communities; 283 sales this year, up 78% from 159 in H1 2020.
- Union Park, Little Elm (Dallas metro) — number 42. Also built by Hillwood Communities; 279 sales this year, down 8% from 304 at midyear 2020.
- Viridian, Arlington (Dallas metro) — number 47. Developed by Johnson Development Corp.; 265 homes sold in H1 2021.
- Pecan Square, Northlake (Dallas metro) — number 50. Built by Hillwood Communities; 259 sales this year, a slight decline from 263 in H1 2020.
The Outlook for the Remainder of 2021
“We expect the demand for new homes to continue to be strong for the remaining months of 2021,” the RCLCO report says, “which bodes well for MPC developers that can meet that demand. This is a particularly important caveat, given the supply chain constraints that have been a significant challenge for builders in many communities.”
The report also highlights housing affordability as a growing concern: the combination of strong demand, limited supply, and rising material costs has driven significant price increases for new homes.
“While we expect the current supply chain constraints will be gradually resolved over the next one to two years, it remains unclear how significantly this price appreciation will impact sales of the Top 50 MPCs moving forward,” RCLCO added.
RCLCO has conducted this national survey each year since 1994, identifying the top-selling master-planned communities by compiling high-performing communities in each state.
July 13, 2021 Realty News Report Copyright 2021
For more about Texas real estate, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available from major retailers.
Photo: By Ralph Bivins. Realty News Report. Copyright 2021
File: Top 50 Master Planned Communities