Homes in Master-Planned Communities Are Selling Fast—Especially in One Infamous Spot

by Kiri Blakeley

Photos courtesy of Prairieland Village; Neal Communities; MLS via Realtor.com

Homebuyers looking for more convenience and a sense of community are flocking to master-planned communities—and the country’s most successful one might seem familiar.

Not only is The Villages the fastest-growing and largest master-planned community, or MPC, in the United States, but it’s also come a long way from its simple start as a trailer park in the 1970s.

The 55-plus community is also the nation’s fastest-growing metro, according to U.S. Census Bureau data. Along with its rapid growth, now spanning about 57 square miles, it has also garnered many headlines for its supposed wild side.

One resident, Gary Kutella, tells Realtor.com® that he got an earful from his son when he decided to retire there.

“He said, ‘You’ve got to worry about the STDs there,'” says Kutella. But he “blew off” the rumors and, along with his wife, moved to “Florida’s Friendliest City” undeterred.

“Even if they were true, they wouldn’t concern us,” he adds. “That’s not the kind of life we lead.”

Instead, the Kutellas were drawn to the sense of community and convenience that The Villages could offer.

And that’s why MPCs are a growing trend in new construction, where developers aim to offer homebuyers nearly everything they might desire: grocery stores, restaurants, hiking and biking trails, a gym, swimming pool, golf course, and more—all within walking distance or a short drive.

Sales of MPC units in a year of high mortgage rates were down a mere 2% year over year, with 35,000 home sales among the country’s 50 most popular MCPs, according to a new report from John Burns Research & Consulting.

Each of the top 50 MPCs sold at least 369 new homes last year, including five MPCs that sold more than 1,000 homes. This is the third-highest since the consulting firm began its MPC survey 13 years ago.

Sales reached their peak in 2021, with 39,000 units sold, fueled by the COVID-19 pandemic housing demand, domestic migration patterns, and an explosion of at-home work.

What makes MPCs so popular?

What’s kept sales of MPCs afloat is their appeal to homebuyers wanting convenience and instant community.

Plus, the amenities often go far beyond the typical clubhouse or pickleball court. Take Sunterra in Houston, which comes in at No. 4 on the list.

“Homebuyers have the opportunity to build a new, personalized KB home at an affordable price in a community that offers an abundance of amenities, including a resort-style pool with a lazy river, a beachfront clubhouse, splash pad, and kid’s cove opening this year, and a planned 2.7-acre crystal lagoon,” says Brett Dietz, president of KB Home’s Houston division.

As mortgage rates hovered at 7%, MPC builders offered more incentives to buy, including rate locks, buy-downs (lower rates for a limited time period), below-market rate originations, help with closing costs, free or reduced rates on upgrades, and even discounts on standing inventory.

“Builders faced some strong headwinds in 2024,” says Cara Lavender, JBREC’s research manager of surveys. “Rates remained elevated (despite many people anticipating they would come down), it was an election year, and supply (both resale and new) was and is rising in many markets.”

Despite the popularity of MPCs, the scarcity of large tracts of land on which to build (an MPC usually covers at least 2,500 acres, sometimes as much as 10,000) might slow future development.

At least 72% of top residential land brokers say that developed lot and land supply is somewhat to much lower than normal in desirable suburban locations, according to JBREC.

Unsurprisingly, Southern California has the least amount of available land, Texas has the most.

Where are all the MPCs?

In terms of sales, Florida is the MPC boomtown. Despite the state’s well-known problems with extreme weather and difficulties procuring home insurance, the Sunshine State took six of the top 10 spots on this list.

The hurricane-prone state also took up four out of 10 places with the most active sales listings: Tampa-Clearwater, Northport-Sarasota, Orlando-Kissimmee, and Punta Gorda.

“Unsurprisingly, the metros with the most MPC listings are ones with high levels of new construction,” says Realtor.com economist Joel Berner. “Many newly planned and newly built communities are using the MPC model, so we see more of them in metros where new homes are being built. There is also a Sun Belt bias (with the exception of a few Mountain West markets), which is consistent with where we see new construction and retirement communities concentrated.”

In terms of the share of MPC sales listings, the top spot went to Provo, UT (6.77%), followed by Jefferson, GA (3.12%), Houston-The Woodlands (2.63%), Greeley, CO (2.35%), and College-Station-Bryan, TX (2.05%).

The future of master-planned communities

Despite land challenges and a sales slowdown since 2021, Lavender sees MPCs continuing to attract strong interest.

“Buyers are drawn to these communities’ diverse living options, while MPCs provide a sustained runway for sales and closings for builders,” she says. “MPCs have traditionally been popular with active adult buyers seeking to live among like-minded individuals, but their appeal extends across all segments, from first-time buyers to move-up families. A growing emphasis on health, wellness, and sustainability—values especially important to younger generations—further enhances their desirability.”

And while rental communities are not included in this report, CEO John Burns says rentals are the future: 2 in 5 developers have begun adding build-to-rent MPCs to their roster.

“Our consulting team has actually worked with a lot of these developers and determined that adding rental components to these master plans is feasible and can be successful,” says Lavender.

Here are the top 10 master-planned communities by sales (excluding public homebuilders).

The Top 10 Master Planned Communities by Sales—Number One Is Infamous