The Sunshine State Yields Top Marks

The top-selling multi-generational community in the United States, Lakewood Ranch, can be found on Florida’s west coast in the Sarasota area. There is no question that the Sarasota area has grown in prominence, and Lakewood Ranch (LWR) has become a regional destination that has far exceeded their team’s expectations. According to LWR’s Senior Vice President Laura Cole, who leads residential sales, “We will make sure it keeps getting better and better. The good news is that demand remains very high, and we are seeing buyers from a growing number of metropolitan areas. The challenge is that our builders can’t fully capitalize on demand because of global supply issues.”

In 2021, LWR welcomed 2,600 sales which was 20% above the previous record-setting year. Cole says, “I don’t expect to repeat, that not only here, but around the country due to ongoing constraints in the supply chain. At this moment, builders are seeing little relief in the procurement and pricing of materials. However, they are becoming more efficient in streamlining the homebuilding process. Once supply issues are resolved, I think you’ll see that these operational improvements will pay big dividends, sales volume will increase, and home build times will decline.”

“Expect to see more curated option packages and more spec homes to choose from—fewer ‘to-be-builts.’ Homebuyers will still be able to put their personal touches on their homes, but the options will be more limited to manage construction cycles and pricing.”

LWR is currently selling in 20 of their 30 villages and is halfway through their eventual buildout. Their new town center, Waterside, has seen phenomenal results and is drawing huge crowds. The entire Waterside village will have 5,000 housing units, and sales have been very brisk. Cole says, “We knew that commerical tenants would not open all at once in the best of circumstances. So we decided to activate the lifestyle component and move our farmers market there. And it went from an average of 2,000 people every Sunday to 8,500 people routinely. It has been very rewarding to see how people enjoy the large gathering space and unique pocket parks, all facing a one-mile lake. We’d love to have that level of engagement on a daily basis.”

LWR is working off of an extensive waiting list for available properties as some builders are releasing two to five homes per month, and as many as 15 homes per month in other villages. They are also doubling the number of apartments and single-family rentals so that people can rent until they can step into their homes as the market allows. Cole says, “People are recalibrating their expectations to where they can still appreciate the lifestyle.”

From North of Tampa to Naples

“Once people realize what’s going on, it’s a lot easier for people to navigate,” says Leslie Rothschild of Bright Realty in Sarasota. She and her husband Irv have created a team of real estate agents that can help from north of Tampa to Naples. She says, “Some retirees are experienc- ing sticker shock. They are selling their homes for higher, but then have to go even higher to get what they think they want. We like to reeducate people. First, figure out the area, your budget, and then the lifestyle you want. The communities are based on the quality of life that people want. Quality of life is more important than the house you buy. You just have to readjust your expectations.”

Both Leslie and Irv know the west coast of Florida. The inventory levels of existing homes are very low in the area. For example, in Sarasota, there were only 35 homes on the MLS from $250,000 to $1,000,000 on the day we spoke. Leslie says, “I’ve never seen anything like this. Houses go on the market, and they are gone that day or the next.” The Rothschilds say that sometimes it might be easier to go into a newer development a little further away to get the best prices. They say that $750,000 is the new $500,000 in their market.

And, just between Sarasota and Naples, FL, Wellen Park also sees high demand. As a matter of fact, Wellen Park has won the Best Community Welcome Center in the United States from