How to make master-planned communities profitable

Picture of Asher Harris

Asher Harris
November 10, 2022
Read time: minute(s)

The pandemic has shifted the priorities of millions of people.

Before, people were largely drawn to live in a specific area because it was close to where they worked. 

Now, more people are less restricted by commuting distances and are looking for a living experience, rather than just a place to live.

This has led to a shift in developments that are focused on community-building. 

Master-planned communities provide just that. These mixed-use developments function as micro-towns, giving residents everything they need in one place. 

Master-planned communities have been around since the 1960s in the US, but have typically catered to retirees. 

However, the growing demand for community living across all demographics presents an opportunity for developers. 

To capitalize on this growth area, developers need to quickly adapt to these new realities – and make sizable profits whilst doing so. 

The importance of community-building 

Communities are vital to our existence. 

Without communities – whether they be global, national, regional or local – we couldn’t survive, let alone thrive. 

We need to feel positively connected to the people that live around us and have easy access to transport links, amenities, and nature. 

With the last one, we know it’s tough to incorporate green spaces into city developments due to zoning laws and just the general nature of urban areas, but a small park or a plot of trees in a walkable area can go a long way to making houses feel like homes. 

Residents are more likely to be healthier and happier living in developments which prioritize their wellbeing, such as master-planned communities. And as a result, would be more inclined to recommend you to other tenants or homebuyers looking for something similar. 

Florida aerial view

So, how do you build profitable master-planned communities?

  1. Utilize relevant data - To build homes in the right places for the right price, you need the right data. Being able to analyze all the data upfront, means that you’ll be able to make smarter decisions at each step of the process. Whether this be when buying building materials, putting the best team in place, or calculating the most profitable sell price, the right information can help you make cost-effective choices. 

  2. Make sustainability mandatory - Some higher-end sustainable materials may cost more upfront but provide a higher satisfaction level for homebuyers and tenants. There are lots of people out there who are happy to pay a premium for doing their bit for the planet and having a more pleasant home. 

  3. Speed up your site-sourcing - With the way information is scattered across organizations, just looking for a site can take a long time – having to go to the state for one piece of information, the county for another, and the federal government for yet another. Even before you begin due diligence, you’ve likely already spent weeks or months actually finding a suitable site.  It shouldn’t be like this.

That’s why we’ve built LandTech, the smarter way to get the land and property intelligence you need, in only a few clicks. 

We’ve brought key datasets, like ownership and zoning, into one easy-to-use platform, so you have all your site-sourcing tools in one place – saving you time and money. 

Download our cheat sheet to see how LandTech can fast track land acquisition

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