In a challenging housing market, builders still attracted buyers to their communities via lifestyle amenities and competitive sales incentives
Jan. 9, 2025
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Quality amenities and other incentives offered by builders prompted buyers to choose homes in master planned communities during 2024.
Despite ongoing challenges in the housing market, master planned communities maintained steady home sales in 2024, with sales experiencing only a 1% decline relative to 2023's 35,000 home sales. According to a recent survey from John Burns Research and Consulting, builders at more than 500 communities across the U.S. attracted buyers in 2024 through lifestyle amenities, diverse housing options, and competitive sales incentives.
After mortgage rates rose sharply in 4Q22, many builders began experimenting with rate buydowns to attract buyers with lower monthly payments. This approach gained traction as builders refined their use of buydowns, making them a central component of their sales strategies throughout 2024. Rates remained elevated following the Federal Reserve’s September short-term rate cut, prompting builders to maintain aggressive incentives. Rate buydowns and contributions to closing costs accounted for the bulk of these incentives, though builders also resorted to price reductions on some standing inventory homes to promote sales.Read more
