What Is a Master-Planned Community?

What if you never had to drive anywhere ever again? While that’s not realistic, living in a master planned community removes the need for driving far and wide to get what you need and enjoy life. Residents enjoy easy access to many amenities. Keep reading to learn about master planned communities and how you might benefit from one near you.

What is a master-planned community?

Master planned communities (MPCs) are a specific type of residential development. They resemble self-contained mini-cities. They often include housing, fitness centers, grocery stores, shopping centers, schools, and more. Master planned communities offer a combination of residential, commercial, educational, and recreational elements.

Some residents in master-planned communities are willing to trade housing features for community amenities such as pools, community centers, parks, walkways, and ‘gatedness;’ and they are willing to pay more, in terms of housing price, for these community amenities.” — Landscape and Urban Planning journal

Master planned communities vs. traditional residential neighborhoods

In many ways, master-planned communities are like traditional neighborhoods. However, some key distinctions define MPCs. A master-planned community requires specific zoning. Most residential neighborhoods are built in residential zones. MPCs require multi-use zoning or special clearances to be allowed.

MPCs contain anywhere from 100 to 50,000 homes built on an average of 2,500 acres. They may be 10,000 acres or more. These planned residential communities are different from regular residential communities because they offer many more amenities.

MPCs are common in suburban areas outside of major cities. Many MPCs are geared toward the 55-and-older demographic. Some are gated communities dedicated to retirement-age people only with extra amenities such as country clubs, golf courses, and walking trails.

It’s also typical for MPCs to target family communities by including family-friendly amenities. Although some MPCs favor population groups like the elderly or families, most are open to any type of resident at a variety of price points.

How do master planned communities work?

They’re called master planned communities because they are often the result of a developer collaborating with builders and engineers to create a new community based on a, well…master plan. The communities characteristically offer a balance of many uses for their residents to enjoy.

Master planned communities start with a developer acquiring thousands of acres of land. The developer builds a team of architects, engineers, and builders to bring the master planned community to life. The team drafts building plans in accord with the master plan and submits those plans for approval by local jurisdictions. Once approved, master planned communities can take months or years to build.

During and after the building process, units open for rent or purchase by tenants. A property manager or homeowners association (HOA) usually manages the residential property. Residents may buy or rent housing within an MPC. This often allows them access to private and public facilities within the community.

Pros and cons of master-planned communities

A master-planned community offers many advantages to those who live there. If you’re considering moving into or investing in one, you should also be aware of the possible disadvantages of MPCs.

Are master planned communities a good investment?

Master planned communities aren’t for the beginner investor. They can be an excellent long-term investment for those with the experience and resources. Investors create value by pooling together several types of uses for the land. Ultimately, the investors control the supply provided by the self-contained community. This earns them a variety of types of income from buyers and tenants and, assuming sufficient demand, respectable profits.

Commercial renters or owners, developers, residential tenants or owners, and others pay the investors for valuable space on their property. Real estate agents can help investors look for opportunities. It may be difficult to find and execute a good MPC deal without a real estate agent.

Younger, smaller, and partnering investors

Smaller-scale or young real-estate investors can also invest in MPCs with great returns. Property in an MPC is valuable due to all the advantages we’ve discussed and more. Investors can buy commercial property or residential property to rent out to others or to build their businesses. A real estate agent can help evaluate the housing market and find great MPC properties to invest in.

Did you know you can go in on a house with a friend? If you want to buy a house with a friend, check out this article first.

Examples of master-planned communities

Master planned communities exist worldwide in all sizes, shapes, and types. Here are a few examples.

• The Woodlands: Located in the Houston area, this MPC is 28,475 acres with a population of 114,500. Since its inception in the 1970s, thousands of businesses have made this vibrant community home.
• Serenbe: Serenbe is in Chattahoochee Hills, Georgia. This community prioritizes wellness with its organic farm, swim club, tennis court, lake for paddle boarding and canoeing, spa, and miles of hiking trails.
• The Sea Ranch Association: This MPC in California contains 2,200 acres with more than 2,000 homes. It was built in the 1960s and boasts a unique, beachy aesthetic with ranch-style homes and amenities such as hiking trails.

FAQ

What does “master-planned community” mean?

A master-planned community is a special type of planned residential community that has easy access to businesses, amenities, and recreational activities.

Are master-planned communities good investments?

Master planned communities are good investments for those who have a strong team behind them. Investors in MPCs benefit from the diversity of businesses contained within them.

What is an example of a planned community?

An example of a planned community is in Las Vegas, Nevada. The Cadence MPC has many amenities and resources such as a community pool, fitness court, pickleball courts, schools, and even an animal hospital.

What is the largest master-planned community?

The Woodlands is the largest MPC in the world at 44.5 square miles.