Buyers now seek a stronger sense of community and developments shrink. Growing up in a quiet subdivision, kids played outside while their parents grilled in the back yard. Then times changed. In early 2000, housing developments went from 30-40 homes to 1000 homes. Homes were built larger, were more expensive, had lots of amenities and sports centers. These developments became so crowded that to go to the basketball court was like standing in line at a small amusement park.
Developers could not pave streets fast enough to satisfy the demand. They offered everything from nature trails to wine tasting communities and sports courts. It was a total shift in people's perception of what they felt was important. It was excess on every scale.
Now people have reorganized and reassessed what's important. Today, what's important is living close to work, knowing your neighbors and not having to worry about whether the developer will be able to sell all the lots. With the smaller developments, what's changed are land prices. This has allowed developers to purchase more centrally located sites that were once financially off-limits. Buyers are more than happy to settle down closer to job centers and shopping. It's a strategy that seems to be paying off for developers.
At the same time, developers also recognize the growing interest in smaller projects and are working to reduce exposure to big losses that come with investing in big projects. The more money you put in the ground upfront, the more financial risk you're going to assume. Smaller projects provide less risk from changing market conditions.
People want a stronger sense of community like they had growing up. Plus, with prices down, now they can afford it. People are looking to take advantage of the market and grow.
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