HOUSTON – (By Dale King, Realty News Report) – Despite continuing, heavy competition from Florida, the city of Houston placed 13 master-planned communities onto the list of 50 Top-Selling MPCs in the nation, according to real estate consulting company RCLCO.
The firm’s new annual survey of the top-selling MPCs of 2022 released says the Houston regional market was the top-performing metropolitan area with a baker’s dozen in the Top 50, representing nearly 6,000 sales, or almost 19 percent of all sales among ranked MPCs.
When it issued its mid-year report for 2022 in July, Houston also loaded 13 MPCs into the Top 50 rankings, which at the time, represented 3,430 sales or 20 percent of the total number of units sold.
Overall, though, Florida is still a major contender. Not only did the Sunshine State take first, second and third place in the list of top selling MPCs for the year, the state copped 40 percent of total sales among all ranked communities. Texas followed with 30 percent.
As reflected in national numbers for other segments of the real estate market, the number of MPCs sold last year dropped. “New home sales among the 50 Top-Selling Master-Planned Communities declined by 20 percent in 2022 compared to the pace set by 2021’s top communities,” said RCLCO Principal Karl Pischke.
He noted that “the second half of the year, in particular, saw significant declines, correlated with rising interest rates, as top communities sold about 13 percent fewer homes than in the first half of the year. However, MPCs have historically increased their overall market share in times of economic turmoil as consumers perceive that the quality of master-planned communities can provide a level of 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.”
Houston’s favored 13 MPCs, according to the RCLCO report for 2022, are:
No. 8, Sunterra, in Katy, developed by Land Tejas/Starwood Land. It sold 795 units last year. This is the first time it made the Top 50.
No. 13, Marvida in Cypress, also developed by Land Tejas/Starwood Land. It sold 635 units last year. This is also its first time on the Top 50 list.
No. 20, Bridgeland, also in Cypress, developed by Howard Hughes Corporation. It sold 567 units last year, down 20 percent from the previous year’s 713.
No. 23, Tavola, in New Caney, developed by Friendswood Development Co. Last year, 508 units were sold, up 17 percent from 2021’s 435.
No. 33, Tamarron, in Katy, developed by D.R. Horton. Last year, 431 units were sold, down 39 percent from 2021’s 707.
No. 36, Becker Crossing in Hockley, developed by Friendswood Development Co. Last year it sold 410 units, up 166 percent from 154 the year before.
No. 38, Meridiana, in Iowa Colony, developed by Rise Communities. A total of 400 were sold last year, down 14 percent from 467 the year before.
No. 40, Cross Creek Ranch in Fulshear, developed by Johnson Development Corp. A total of 396 units were sold last year, down 13 percent from 456 the year before.
No. 42, Woodforest in Montgomery, also developed by Johnson Development Corp. 382 units were sold last year, down 18 percent from 467 the year before.
No. 46, Elyson in Katy, developed by Brookfield Properties. It sold 362 units in 2022, down 21 percent from 456 the year before.
No. 47, Caldwell Ranch in Rosharon, development by D.R. Horton. In 2022, it sold 359. This was its first year in the Top 50.
No. 49, Sienna in Missouri City, developed by Johnson Development/Toll Brothers. A total of 351 units were sold last year, down 46 percent from 646 the year before.
No. 49 (tie), Sierra Vista/Sterling Lakes in Arcola, developed by Land Tejas/Starwood Land. Also sold 351, down 39 percent from the 579 total the year before.
Other Texas MPCs that made the Top 50 were No. 6, Silverado in Aubrey (820 units sold); No. 7, Mission Ridge in El Paso (805 units sold); No. 24, Valley Ranch in San Antonio (505 units sold); No. 28 Wildcat Ranch in Crandall (462 units sold); No. 31, Union Park in Little Elm (453 units sold) and No. 32, Santa Rita Ranch in Liberty Hill (450 units sold)
Other key takeaways from the report:
• Rising interest rates and affordability issues, particularly in the second half of the year, have had a significant impact on visitor traffic and new sales.
• Sales in the second half of 2022 were 13 percent lower than the first half of the year, further highlighting the struggles faced by buyers as mortgage rates peaked above 7 percent in October.
• The Villages, Florida’s active-adult community, is once again the top-selling MPC in the nation with 3,923 sales in 2022, a 2 percent decline from the record pace set in 2021.
• Sarasota, Florida’s Lakewood Ranch claimed the number two spot overall, and is the top-selling multi-generational community in the country, with 1,846 sales.
• Hutson Companies Silverleaf community, near Jacksonville, Florida, has earned the third-place rank with 1,034 sales in 2022, an 11 percent increase over 2021.
• Southwest Florida’s Babcock Ranch ranked within the Top-50 for the first time with a 31 percent increase in sales.
Jan. 9, 2023 Realty News Report Copyright 2023
File: Houston Tops National Rankings by RCLCO
Photo: CALpix
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