New urbanist projects post solid sales

Sales have picked up in traditional neighborhood developments (TNDs) in the last two years, according to an analysis by John Schleimer of Market Perspectives in Roseville, California. A survey of sales in selected projects was conducted in April, 1998, two years after a similar survey was conducted. Northwest Landing, a TND in Dupont, Washington, has sold more than 600 lots since the project opened in January, 1995. The pace is more than 140 lots/year, but the large majority of those sales came in the last two years. When the 1996 survey was completed, the pace was 100/year. A similar trend is evident in Laguna West, near Sacramento, California. Two years ago, the project was selling 131 homes/year. Now that figure is up to 168. Both projects were master planned by new urbanist architect Peter Calthorpe. Two other projects analyzed in both surveys — DPZ-designed McKenzie Towne in Calgary, Alberta, and Harbor Town in Memphis, Tennessee, planned by RTKL — have shown strong sales in the last two years. Schleimer gives four reasons for the good sales results: 1) The projects are maturing, offer more amenities in place and improved streetscapes; “This is validating the New Urbanism concept and buyers can see it,” he explains. 2) The economy is improving, which means that both conventional and new urbanist developments are performing better. 3) News articles continue to publicize the New Urbanism in general and specific developments. 4) Project design is getting better; “Floor plans are improving; there is function within the facade,” Schleimer says. Four projects do not constitute a comprehensive survey, but Schleimer also presents sales figures from four newer TNDs not included in the analysis two years ago — Abacoa in Jupiter, Florida; Rosemary Beach in Walton County, Florida; Orenco Station in Hillsboro, Oregon; and Har-Ber Meadows in Springdale, Arkansas. With the exception of Har-Ber Meadows, the projects appear to be posting solid sales. Data from the survey is condensed in Table 1. Builders see the light Production builders are becoming better acquainted with the New Urbanism, Schleimer says. “They can see that the New Urbanism is gaining momentum and has a foothold in the market,” he adds. “Now they are making the extra effort to design a product that is acceptable in the marketplace.” Good examples of production housing, according to Schleimer, are: 1) Beazer Homes’ detached single units in Laguna West on 45 by 110 foot lots, selling for $118,000 to $145,000. These homes, at 1,275 to 1,700 square feet, have sold at a rate of 10/month, a major reason why Laguna West is doing better in 1998 than early 1996. 2) Centex Homes’ cottages in Northwest Landing on 2,450 square foot lots, selling for $115,000 to $135,000. 3) Houses designed by DiVosta Homes Inc. for Abacoa, which he calls “outstanding floor plans for the market.” Those examples “just go to show that if you design the right product, with the right floor plan at a competitive price, you can achieve solid sales with the New Urbanism,” Schleimer concludes.