Las Vegas master plans rebound in 2023

Sales in Las Vegas master-planned communities, which took a bigger hit than the rest of the nation in 2022, rebounded in 2023 with a stronger second half of the year than the nation as a whole.

• National consulting firm RCLCO released its top 50 list that had Summerlin ranked No. 4 in the nation in sales after coming in at No. 9 in 2022. It had 1,090 sales, a 39 percent increase over the 782 in 2022.

• Cadence in east Henderson ranked No. 6 after falling to No. 19 in 2022. It had 964 sales, a 69 percent increase over the 571 in 2022. Cadence was ranked as high as seventh in 2021.

• Inspirada in west Henderson came in at No. 28 in 2023 after sitting at No. 22 in 2022. It had 575 sales, an 11 percent increase over the 517 in 2022.

• Skye Canyon fell out of the top 50 with a ranking of 64. It was ranked 35th a year ago but RCLCO Vice President Karl Pischke said the master plan is winding down its sales. It had 334 sales in 2023, down from 517 in 2022, a 35 percent decline.

New home sales among the 50 top-selling master-planned communities nationwide increased by nearly 14 percent in 2023 compared to the sales of 2022’s Top-50 communities, Pischke said. The Villages in Florida kept its No. 1 ranking with 3,029 sales, a 23 percent decrease over 2022. Lakewood Ranch in Sarasota, Florida., was second with 2,257 sales while Sunterra in Katy, Texas, was third with 1,293, just ahead of Summerlin.

Of all the sales in the top 50, a little more than 7 percent took place in Las Vegas, Pischke said. Houston has 12 communities. Dallas has six and Las Vegas is third with three.

Las Vegas had 2,963 sales across the communities in 2023 when Skye Canyon was included. Those four communities in 2022 sold 2,283 sales, a 30 percent increase, Pischke said.

Excluding Skye Canyon, there was a 41 percent increase. For the overall housing market, Las Vegas-based Home Builders Research reported a 22 percent increase in net sales over 2022.

“What we saw more broadly across the nation was a 14 percent increase in the top 50 list overall, and it’s pretty significant that Vegas was able to sustain an even bigger increase, potentially a sign the 2022 sales even further held down in Las Vegas.”

In the broader top 50 list, the communities that made the list at mid-year versus year end, the second half of 2023 was 15 percent slower; but in Summerlin, Cadence and Inspirada at mid-year, those communities sold 1,249 at mid-year.

During the second half of 2023, they sold 1,380 homes, nearly 9½ percent stronger than the first half, Pischke said.

“Hopefully, that bodes well for 2024 and with rates coming down, there’s reason to be optimistic,” Pischke said. “It sounds like the data we’re seeing from builders is bearing that out.”

In 2022, Pischke said Las Vegas sales were hurt by material shortages that have since been overcome and by rising interest rates starting with 4 percent in February and surpassed 7 percent in October. They were just above 3 percent in late 2021, and that hurt affordability.

“It took a little while for builders to overcome that problem in 2023, and the fact that Vegas improved 9½ percent in the second half of the year while top 50 list was 15 percent lower than the first half of the year shows that Vegas may have taken a little longer to get where it was and finally able to meet the demand looking for new homes. Builders across the country are able to offer financing at more attractive terms, which has brought in more homebuyers when they may not have been able to afford a new home otherwise.”

For 2024, the National Association of Home Builders survey sentiment has been trending higher, and people are optimistic with the Federal Reserve’s plan to cut interest rates, which should have a positive impact on master-planned communities, Pischke said.

“What we have heard from folks is that keeping enough supply available to meet what they expect to be growing demand will be critical and with Summerlin, Cadence and Inspirada, that seems like it will be a top priority,” Pischke said. “It’s still very impressive the performance that Las Vegas has had.”

Summerlin

Pischke said Summerlin has been on RCLCO’s top 50 list more than most. They have been on the top 25 for more than 27 years and had top 10 appearances from 1994 (the first year of the list) to 2007). They had top 10 appearances every year from 2015 to 2024 and top three appearances from 2018 to 2021.

“That type of longevity and staying power is pretty unique,” Pischke said. “The only other communities currently active that have a similar distinction, but not quite as long, is the Villages in Florida. They are still such an impressive part of this top-selling community list.”

Within the community’s residential sector, 2023 saw the opening of six new Summerlin neighborhoods offering dozens of new floor plans and the close-out of eight neighborhoods.

New neighborhoods are in Summerlin West in the growing districts of Redpoint, Redpoint Square, Kestrel and Kestrel Commons. Those neighborhoods include Cordillera by Toll Brothers, Vertex by Tri Pointe Homes, Osprey Ridge by Richmond American, Vireo by Woodside Homes and Quail Cove by KB Home. Ascension, a new neighborhood taking shape in Summerlin’s newest village, The Peaks, located near Town Center Drive and Tropicana Avenue, is a combined development of Toll Brothers and Pulte that began sales in late 2023.

“Summerlin continues its remarkable trajectory — entering its 34th year as, once again, one of the country’s top-selling communities,” said Frank Stephan, president of the Nevada Region for Howard Hughes. “Summerlin’s sales exceeded our 2023 projections as Las Vegas continues to be a leading destination for domestic migration as people seek their ideal lifestyle, and companies follow to take advantage of a thriving workforce in a business-friendly environment. As we continue to develop our remaining acreage, including new development at Downtown Summerlin, we recognize Downtown Summerlin’s role in helping to drive momentum for strong home sales in the community. Serving as Summerlin’s central gathering place, offering dining, shopping, entertainment and professional sports in a vibrant, walkable environment, Downtown Summerlin is key to quality of life for all who live in the community.”

At Downtown Summerlin, the community’s urban center, 2023 brought the opening of a 10-story Class-A office building that by year-end was 90 percent leased; the opening of Tanager Echo, a new luxury apartment building with nearly 300 residences; and the announcement of a new retail center on the northwest corner of Sahara Avenue and Town Center Drive anchored by a new Whole Foods Market that is under construction.

During 2024, Summerlin anticipates the opening of five new neighborhoods plus a scattering of parks and open space in Summerlin West, as well as models opening at Ascension in The Peaks village. Additionally, development will begin in Summerlin’s newest village, Grand Park, situated along the western edge of Summerlin’s Redpoint and Kestrel districts. It is named for its central gathering place — a park planned for the village surrounded by new neighborhoods intertwined with open space. Grand Park will feature architecture inspired by traditional American styles — both classic and modern — with a dash of eclectic from Summerlin’s line up of builders, Stephan said.

Cadence/other

Pischke praised Cadence with the biggest appreciation and that it nearly hit 1,000 sales in the master plan, which RCLCO has tracked since 2015.

“This is the strongest sales year that they have ever had,” Pischke said. “Their next highest year was 864 sales in 2021. It’s pretty meaningful that they jumped up to almost the 1,000 mark.”

Cheryl Gowan, Cadence’s vice president of marketing, said it’s exciting to have its highest ranking in history.

“We’re very proud of that,” Gowan said. “We had some additional builders that came on board in 2023 and various different products. We had a couple of homebuilders initially who had town home or duplex-type products and other builders came on and built those in addition to single-family homes. The product mix is there, and some of those price points are at a level where new homebuyers could afford those mortgages. A lot of our builders are working with buyers to make it work for them, whether upfront on the price of a home or various incentives.”

Also in 2023, Century Communities, which previously had one neighborhood in Cadence, opened six more, including detached products, Gowan said. D.R. Horton also started building in 2023 and had town homes as well, with the two builders’ town home prices starting in the mid-to-upper $300,000s. The developer will be announcing new additions later this year.

Gowan said the community sees 2024 on the same pace. Lennar, who built a 55-plus development, Heritage, will build additional communities, which are not age-qualified. She added that Woodside Homes and D.R. Horton still has a lot of parcels to build on.

Pischke said the most sales Inspirada has had is 837 in 2017, and while they only had a 11 percent increase in 2023, the master plan continues to be a mainstay on the list.

“They will continue to be a presence there,” Pischke said. Tule Springs in North Las Vegas, which was on the list in 2022, did 250 sales through the first half of December as a project of D.R. Horton.

“That may be a community to watch for next year,” Pischke said.