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Livabl Jul 13, 2022

Landsea Homes in Phoenix ⁠— everything you need to know

What potential buyer doesn’t want to know more about their potential builder? If you’re looking to learn more about what Landsea Homes is doing in Phoenix, then you’ve come to the right place. This deep dive article will tell you what you need to know about Landsea Homes, from the types of homes that they’re building in Phoenix to its last quarterly report.

Based out of Newport Beach, California, Landsea Homes is a publicly traded residential homebuilder with a focus on creating sustainable master-planned communities. Crowned Builder of the Year for 2022 by Builder, Landsea Homes experienced a pivotal year in 2021 as the company went public and surpassed the $1 billion revenue mark.

Landsea Homes expands in Phoenix

Kaylee Smith is Landsea Homes’ division president of Arizona. Working with the builder for more than six years, Smith started her role under Landsea’s California branch before transitioning to Arizona in 2021. Overseeing the operations side of the division, Smith and her team are actively acquiring land in Phoenix where the company sees expansion occurring. Smith tells us more about what Landsea Homes is working on in the Phoenix region and how the builder’s portfolio of homes has grown in the market.

Can you tell us a bit about Landsea Homes’ relationship with the Phoenix region?

At Landsea, we love Phoenix, and personally living here, I can see why. It’s the affordability, the opportunity for activities and the overall lifestyle here in Phoenix that is attractive to buyers.

As a company, we pride ourselves on innovation. Our High Performance Homes include four pillars — energy efficiency, sustainability, healthy homes and home automation. We’ve brought this new philosophy of sustainability into the market as a homebuilder, and it is really resonating with customers. They see the value we’re providing with our homes. We include air purifiers in every home as well as home automation features including smart lighting, garage doors and front door locks.

We’re also seeing a mass migration of the younger population who are tech-savvy but also seeking more affordable homes, so they are loving our homes. It’s been a positive experience for Landsea Homes to join the Phoenix market and grow

Why did the company expand into Phoenix?

Phoenix was, and still is, one of the fastest-growing markets in the country. There was a lot of migration into the state and Landsea Homes knew we could bring high-quality and attainably priced homes to this area that we knew would serve customers in a growing market.

How has Landsea Homes grown and evolved over time in Phoenix? What was your start in the market?

[Since May 2018], we have closed over 2,000 homes and have bought 4,000 lots. We started out with one project, and in four years, we have grown to be a top-eight builder in the Phoenix market, which shows all we have accomplished in a fairly short time period.

A sunlit living room with white walls in a Cirtus Park model home by Landsea Homes.

The homes in Citrus Park will range from 1,706 to 3,427 square feet in size. Image courtesy of Landsea Homes.

What were some of the first communities that Landsea Homes brought to Phoenix?

One of our first projects that we ever acquired was in Chandler called Sonora Crossing, and that community closed out last year. That was a great little project that was infill in the Chandler market that allowed residents to buy new homes close to employment, close to activities.

What do you think makes Phoenix a great place to live and work in?

I moved from Southern California to Phoenix, and I really enjoy it here.

I personally loved the affordability of buying a home and our customers do as well. Many of our customers rent in California but realize they want something more. They come to Phoenix, and they have an opportunity to buy their dream home, build equity, design it and put in their own features.

Living in the Phoenix firsthand, there’s so much to do and it’s so easy to get around compared to some of the other markets. The city has done a great job of planning ahead. There’s great employment opportunities and easy access to transportation.

Phoenix is also a great place for foodies and outdoor enthusiasts. There are new restaurant concepts, ample hiking opportunities, and several lakes nearby. Golfers also get their pick of amazing and renowned courses. It’s just an overall great place to live and work. Although the weather is warm in the summers, it’s really enjoyable year round.

How would you describe Landsea Homes’ Phoenix portfolio?

Landsea has about 20 communities in the Phoenix market, which span from Surprise down to Buckeye, and along the south through to Goodyear, Avondale and Tolleson. We also have communities in the east side which is a great area as well — including Mesa, Queen Creek area, Pinal County.

We have homes in all those markets, and we’re really known for our High Performance Homes, which also come with a REME HALO air purifier. Home automation features include smart front door locks, a smart garage door opener, smart thermostat and smart lighting. Regarding energy efficiency, our homes are built with thicker insulation and energy efficient appliances.

What demographics are looking for new Phoenix homes?

Our product really serves the first-time homebuyer and the first-time and second-time move-up buyer. We love welcoming that person into their first home. Maybe they’re coming out of a rental or coming out of an apartment complex, so it’s an exciting feeling to be with them throughout their journey.

We do have one 55-plus community called Verrado out in Buckeye. That’s been really well received for buyers that are seeking warmer weather during the winters here in Phoenix. Often, they have lived in Canada or in a snowy place, and they like to spend their winters here where it’s nice and 75 to 85 degrees. That buyer profile is also very strong here.

Why are those buyers interested in Landsea Homes?

We buy land in locations that are close to employment, close to activities, and offer a great quality of life. Not to mention our High Performance Homes that really appeal to the first-time home buyer and allow them to live the way they want to. Our tagline at Landsea Homes is ‘Live in Your Element” because we want customers to be able to live how they want in their homes.

The exterior of a white and blue two-story home in a new suburban neighborhood under blue skies.

Marketside Tercera at Verrado is one of two neighbors in the Verrado master-planned community. Image via BuzzBuzzHome

What are some local market trends you’ve noticed in Phoenix?

We’re still seeing a positive migration in from the Midwest, from California, and from the northwest such as Oregon and Washington. A lot of out-of-state buyers are moving here, and demand remains very high. Homes are still selling, and that’s what I’m hearing on the ground from our sales counselors. It’s a great place to live and it’s more affordable than some of the other markets.

How do you think the COVID-19 pandemic has impacted the market and your offerings?

COVID-19 forced a lot of people to stay home, and while they were at home, many decided they wanted to have their own space. A space that could accommodate their work from home or schooling from home needs. And so, Landsea rolled out its own innovative program called LiveFlex. It is an optional program that allows residents to transform their spaces into what they need, whether it be a home office, a gym, a homeschool room for their kids, or a craft room.

What I’ve found is that during COVID-19, people spent a lot more time at home, thus there was a much bigger emphasis on your home and it working for you in terms of flexibility. In that sense, demand has gone up and it’s become apparent that the security of owning a home is important compared to renting a home where the market has increased, and people have had to leave their rentals. When you purchase your own home, you’re in your own space. You build your home and your family around it.

How does Landsea Homes go about designing and planning master-planned communities?

When we start to look at a piece of land and start to develop on it, we really ask ourselves “Who is going to live in this neighborhood and what do they want? How do they want to live in their element?”

Our team brainstorms with great consultants and it’s all about our customers. It’s all about finding out what they would like to do with their time, whether it be pickleball, basketball, or spending time at the playground with their kids. Are the kids two to five [years old]? Are the kids five to 10 [years old]? How close are we to other public parks? [We think about the inclusion of] pools.

We have a really exciting community that’s coming in the fall called Citrus Park and that’s a master-planned community, which will offer homes in three new neighborhoods. Our team started with asking ourselves, “Who are our buyer demographics and how do they want to live?” Through our research, we knew we needed playgrounds, and we’ll have a splash pad for the little kids and larger pool. [There will be] barbeques and firepits. We’re finding ways to bring all of this to market to make our buyers happy.

A rendering of an amenity lawn with cornhole boards, an in-ground pool and patios.

Citrus Park will provide pools, firepits and a variety of other amenities to new residents. Rendering courtesy of Landsea Homes.

In your opinion, what makes a good master-planned community?

I think what’s really important in developing a master plan is accessibility for everybody to access those amenities — making sure that there’s pocket parks along the way, making sure that there’s walking trails and engagement between the pavements so it just doesn’t feel like you’re on the concrete. You can walk through the neighborhood, go for a stroll and stop at the different parks along the way. I think that makes a great experience for our homebuyers.

What are some amenities that are desirable for master-planned community homebuyers?

I think the splash pad for the kids is always well received. Having a community pool where you don’t have to have the maintenance of your own pool in your own backyard. It does get a little chilly in the night in the winter, so firepits for families to hang out around and roast s’mores and hang out in the evenings in the winter has also been a really popular amenity.

How do you think the Phoenix new home market will evolve in the coming years?

I believe demand will stay strong because of the affordability and the quality of life in the Phoenix market. Not to mention the added infrastructure that’s going in which provides growth opportunities for new home developments to come. It’s going to continue to grow and expand, which is exciting for Landsea Homes.

What new projects or offerings will Landsea Homes roll out next?

I think we’re going to see a change in exterior styles and finishes. For example, our coming soon community of Citrus Park will feature a mid-century modern elevation, which is popular in other markets but will be new to the Goodyear market. I believe that buyers will really be investing in homes that have character and showcase unique design qualities.

Responses have been edited for clarity and brevity.

From Surprise to Mesa, explore Landsea Homes’ collection of Phoenix projects

The exterior of a brown and beige two-story home at twilight.

Greenpointe at Eastmark is a 200-plus unit community by Landsea Homes under construction in Mesa. Image courtesy of Landsea Homes.

Across Greater Phoenix’s 20 different cities and towns, you’ll find developments by Landsea Homes in many of them.

All of Landsea Homes’ projects encompass single-family residences, with properties starting from the high $300,000s. Buyers can have their pick from several floor plans in master-planned and 55-plus adult communities with single-level and two-story layouts to choose from.

Landsea Homes has several new neighborhoods and large-scale communities across the Phoenix metropolitan area that are currently open for registration or under construction.

The Villages at North Copper Canyon – Surprise
Northern Farms – Waddell
El Cidro – Goodyear
Sunset Farms – Tolleson
Verrado – Buckeye
Citrus Park – Goodyear
Eastmark – Mesa
Estrella – Goodyear
Alamar – Avondale
Marlowe – Glendale

A full list of local developments can be found here.

Madison Square

A rendering of a Spanish-style new construction home.

Featuring four plans, Madison Square says that it combines “desert cool and urban sophistication.” Rendering via BuzzBuzzHome

Location: 1723 East Stella Lane, Phoenix
Price range: From $859,999 to $899,900
Size: Three to five bedrooms, 2,245 to 2,707 square feet

With just three quick move-in homesites available for the taking, limited opportunities remain at Madison Square. Located in Phoenix’s Camelback East neighborhood, this 40-unit community is on the west side of AZ-51, lending easy access to the downtown core, nearby retailers and Phoenix Mountains Preserve. Restaurants, hospitals and local conveniences like grocery stores and pharmacies are a short drive away from this project.

Madison Square consists of four modern floorplans, including Central, Midtown, Uptown and the now sold-out Biltmore. The remaining homes in this collection feature a two-car garage, plus lofts, studies and teen rooms for extra storage and workspace.

A modern kitchen with brown cabinets and a granite center island.

The kitchens at Madison Square feature stainless steel gas appliances, crown molding and shaker cabinetry. Image via BuzzBuzzHome

Sunrise

A white exterior of a two-story new construction home by Landsea Homes.

The Valley Series at Sunrise caters homes from 1,776 to 2,868 square feet. Rendering via BuzzBuzzHome

Location: 16914 W Jomax Road, Surprise
Price range: $399,990 to $576,662
Size: Three to six bedrooms, 1,315 to 3,240 square feet

Comprised of 184 new homes, Sunrise brings three collections of single-family residences to Surprise – the Canyon, Valley and Peak series. With one- and two-story layouts, these three home collections offer 17 floorplans to choose from with up to 3,240 square feet of living space with open concept layouts, indoor-outdoor areas and multi-car garages.

Located on West Jomax Road, Sunrise is a short distance to Grand Avenue, which leads directly into Glendale and downtown Phoenix. The West Grand Avenue stretch is where you’ll find your favorite big-name retailers like Trader Joe’s, Starbucks, Walgreens and more. Residents of Sunrise will neighbor local parklands and live a half-hour drive from golf clubs, hiking trails and Peoria Regional Preserve.

A brown and beige home double-level home with a garage under cloudy skies.

The Sunrise Canyon Series delivers seven one- and two-story floor plans with open-concept designs. Image via BuzzBuzzHome

Centerra

A white modern kitchen overlooking a grey living room.

New model homes are now open at Centerra. Image via BuzzBuzzHome

Location: 1723 East Stella Lane, Phoenix
Price range: From $391,900 to $485,739
Size: Three to five-and-a-half bedrooms, 1,525 to 2,210 square feet

Featuring seven district floorplans, the layouts at Centerra offer LiveFlex opportunities so homebuyers can tailor their living space to their needs, whether they require a room to school from home, workout or hop on a business call. The residences in Landsea Homes’ Centerra community come in single-level and two-story plans with laundry rooms, two-car garages and a center kitchen island.

Under construction in Goodyear, Centerra is less than 10 minutes away from Phoenix-Goodyear Airport, plus bars, shops and the Goodyear Ballpark where you can watch Cactus League games. Centerra is minutes to Papago Freeway, providing a straightforward commute into downtown Phoenix.

A primary bedroom with a ceiling fan in a family home.

Centerra has seven floorplans to pick from with LiveFlex options. Image via BuzzBuzzHome

Landsea Homes delivers 572 properties, up 35% annually, in Q2-2022

In Q2-2022, Landsea Homes reported an increase in both its revenue and delivered homes.

On August 4th, the publicly traded U.S. homebuilder released its Q2-2022 financial results.

Last quarter, the company received $14.9 million in net income, up from $10.7 million in Q2 the previous year. Landsea Homes’ total revenue increased 47.3 per cent annually to $368.7 million in Q2-2022. This marks an increase from $250.3 million in Q2-2021. The growth in quarterly revenue was thanks to a jump in the average home sales price across Landseas’ divisions and the addition of operations in Florida and New York.

The total number of homes delivered grew to 572 properties with an average sales price of $613,000, up from 425 homes delivered with an average sales price of $564,000 during the same period last year. The increase in deliveries was a result of Landseas’ acquisition of Hanover Family Builders in Q1-2022.

“Landsea Homes continued to deliver on its goals of targeted market share expansion and profit growth in the second quarter of 2022,” said John Ho, chief executive officer of Landsea Homes, in a press release. “New home deliveries increased 35 per cent year-over-year and average selling prices rose nine per cent, resulting in top line growth of 46 per cent for the quarter.

Ho added that net new orders for the quarter increased 63 per cent compared to 2021, a trend that is growing due to a significant increase in active selling communities. Sales absorptions averaged 3.3 homes per community per month in Q2-2022. A slowdown in order activity was noted as the quarter played out, a trend that emerged as higher mortgage rates and lower consumer confidence impacted affordability and buyer psychology, according to Ho.

“We have adjusted our sales efforts to reflect the change in buyer sentiment and believe we are well positioned to navigate this more challenging sales environment thanks to our market positioning and the appeal of our High Performance Homes,” he added.

The total number of properties in backlog increased 31 per cent to 1,571 homes in Q2-2022 for a total of $902.1 million, up slightly from 1,197 homes during the same quarter in 2021.

For Q3-2022, Landsea Homes anticipates that new home deliveries will range between 575 to 630 properties, with an average selling price in the ballpark of $550,000 to $575,000. By year’s end, the homebuilder expects to deliver 2,500 to 2,700 homes, which will range from $525,000 to $550,000.