Different homebuyers have different needs
Master planned communities have changed significantly over the past decade as homebuyer preferences are changing.
“It is clear that the homebuilders old ‘one-size-fits-all’ approach to homebuilding no longer works in a world with so many different types of people whose interests differ widely,” said Senior Resident Fellow with the Urban Land Institute Ed McMahon.
“Not only from buyers of the recent past, but also from each other.”
“Residential Futures: Thought-Provoking Ideas on What’s Next for Master-Planned Communities,” the Urban Land Institute’s Terwilliger Center for Housing 2012 document, stated that the “old” normal is being replaced by a demand for different types of housing for a different type of consumer. Specifically, the document discussed how “intergenerational families, single women living alone, generation Y, and baby boomers … are all pursuing different lifestyles require a range of housing choices and amenities to better suit their needs.”
“For more than a decade before the recession, homebuilders designed homes and communities as if every single family was the Waltons (mom, dad, two kids and a dog),” McMahon said. “As a result, in almost every major market there is an oversupply of large lot single-family housing and an undersupply of everything else.”
With the onset of a new consumer, master-planned communities are developing different styles of neighborhoods within the community to meet the ever-changing demand.
“We are building more than houses at Cadence; we are building a community, and a good community requires diversity,” Cadence spokeswoman Cheryl Persinger said.
“This means that we need homeowners at every stage of life, with a variety of backgrounds and experiences.”
According to Persinger, within Cadence’s 2,200 acres are a broad range of home types, including those first-time homebuyers, move-up buyers, empty-nesters and retirees.
Las Vegas’ newest master-planned community, Skye Canyon North, also plans to offer a variety of housing options as the community develops.
“I think it’s important to provide housing options for all demographics in a market,” said Olympia Cos. Vice President of Development Chris Armstrong. Olympia Cos. is the developer of Skye Canyon. “Not only is it attractive to buyers initially, it’s crucial to the overall success of the master-planned community because homeowners will grow within the community, get to know their neighbors, and stay within that community throughout the various phases of their life.”
The Howard Hughes community of Summerlin offers townhomes, condos and multifamily rental homes as alternatives to purchasing a single-family home.
“We recognize that there is a wide range of family types and an even broader range of personal preferences, so it is our goal to offer homes that match the varied lifestyles of our new homebuyers,” said Peggy Chandler, senior vice president, Summerlin.
“The perfect home for one family isn’t the perfect home for another, so we work with our homebuilders to find the right combinations that deliver the best options for future residents.”
Besides offering different types of housing and neighborhoods, MPCs are becoming more inclusive. The resulting amenities within walking distance include grocery stores, restaurants and other retail options.
“The trend toward more walkable, mixed-use communities began before the recession, but it has greatly accelerated since then,” McMahon said. “One big reason is because the communities that were the most hard-hit in the recession were “the drive-everywhere-for-everything-communities.”
McMahon added older, walkable and transit-served suburbs held their value better and recovered quicker than conventional suburban communities.
“In addition, MPCs that were envisioned as environmentally friendly, mixed-use walkable communities also fared better,” McMahon said. “In fact, CEOs for Cities has found that every 1 point increase in Walk Score correlates to a $600 to $3,000 increase in property values.”