Product Mix And Sales
When asked, consumers overwhelmingly prefer single-family detached homes to attached product, but actions and words are sometimes misaligned when the pricing reality sets in. Buyers are increasingly open to denser neighborhoods to help hit a lower price or to be positioned in a good neighborhood. Attached new home communities increased by 16% on average nationwide from 2016 to 2019.
Attached product doubled as a share of overall in one market. Attached offerings as a percent of total communities in Charlotte doubled in three years to 17%. Of the 15 best-selling communities over the past three months, two are attached in Charlotte with an average sales rate over eight per month.
Markets are adapting. Attached product also gained a sizable share in Atlanta (21% of the market), Seattle (19%), Salt Lake City (22%), and Las Vegas (12%). In Seattle and Salt Lake City, 50% of the best-selling new home communities over the past three months were attached.
Low supply, low action. Attached offerings are scarce in San Antonio (1% of the actively selling projects), Dallas (4%), Columbus (4%), Austin (6%), Sacramento (6%), and Riverside-San Bernardino (6%). Unsurprisingly, none of these have attached communities in the top 15 best-selling except Columbus and Riverside.
In Columbus, the only attached product to make the top 15, The Enclave At Adalee by Ryan Homes, is actually the #1 best-selling community in the entire metro. The two in Riverside are in Rancho Cucamonga in the $400,000s.
Outsized sales for attached product. In some markets, there’s a big spread between the percent of attached product in the market and the percent of the best-selling communities that are attached. For example, while Seattle’s attached share is only 19% of the market, 53% of the best-selling communities fall under that product type.
A similar trend is occurring in Miami, Salt Lake City, Washington, DC, and Minneapolis. The data suggests that if more well-executed, well-positioned attached product hits these markets, the denser communities would be well-received.
Detached still king in Phoenix. On the flip side, 13% of Phoenix’s market is attached, but there are 46 best-selling detached communities before an attached one makes the list.