At the 2025 ULI Spring Meeting, leaders from Oxland Group, Taylor Morrison, and Highland Homes convened for a panel titled “The New Builder/Developer Dynamic: Partnering for Success in a Shifting Market.” Tom Woliver, co-president and founder of Oxland Group, moderated the discussion with Erik Heuser, chief corporate operations officer for Taylor Morrison, and Jeff Stinson, senior vice president of Highland Homes.
The expert trio offered critical insights into the evolving dynamics between builders and developers and the implications for the future of master-planned communities (MPCs). In today’s high-cost, high-volatility housing environment, MPCs face both new risks and new opportunities as traditional roles shift and capital strategies evolve.
Key trends for MPCs
Master-planned communities are undergoing a profound transformation driven by shifting market dynamics. The traditional model—where master developers control the land pipeline and coordinate with multiple builders—is being challenged by heightened demands for financial and operational agility. Current trends signal a need for MPC developers to evolve to remain competitive and deliver enduring value.
Builders taking the lead
The traditional model of master-planned communities—with developers sourcing, entitling, and phasing land delivery to builders—is being disrupted. Major builders, such as Taylor Morrison, are now self-developing the majority of their lots, reducing their reliance on master developers.
“We used to buy only finished lots,” Heuser said. “Now we self-develop about 85 to 90 percent of our lots. That shift gives us more control, stronger margins, and the ability to manage timing risks.”
This shift reflects builders’ desire for faster timelines, stronger margins, and more predictable inventory pipelines. As a result, MPC developers must compete with vertically integrated builder-led communities and demonstrate how their projects can deliver unique value that builders cannot easily replicate on their own.
“We weren’t developing our own lots until necessity forced us to change,” Stinson said. “We’ve become more proactive—sourcing land, managing entitlements, and structuring creative partnerships.”
Evolve or risk obsolescence
Developers who fail to evolve risk losing builder partners to more flexible or integrated competitors. To remain relevant in the MPC space, developers must move beyond land delivery and into higher-value roles. “The developer of the future must be a value-adding partner,” Woliver observed, “not just a land flipper.”
This includes offering strategic entitlements, segmentation planning, amenity programming, and creative financing structures that meet the evolving needs of builders. In master-planned communities, this means creating environments that enhance builder brand differentiation, enable diversified product types, and deliver a lifestyle experience that attracts residents.
Heuser emphasized the importance of thoughtful planning: “If you’re in a master plan, you need to ensure all builders can coexist. There needs to be a ‘policeman’ to enforce design and program cohesion—and it helps if the developer brings premium amenities early.”
JVs and strategic alliances
Master-planned communities are increasingly shaped by collaborative arrangements between builders, developers, and capital partners. As land costs and infrastructure requirements rise, builders are more likely to enter joint ventures for community-scale development. “We’re collaborating with other builders to acquire and develop larger tracts of land,” Stinson explained. “The alignment on timing, phasing, and execution is key.”
For MPCs, this shift emphasizes the need for clearly defined roles, shared phasing strategies, and alignment on long-term community objectives. Developers of MPCs must foster trusted relationships and offer governance structures that support builder participation. “We pair different capital sources with different deal types—joint ventures, land banking, seller financing,” Heuser said. “We’re looking at every tool.”
Capital innovation is reshaping MPC delivery
The financing structures behind MPCs are becoming more complex. Builders now rely on capital-light models, including land banking and off-balance-sheet vehicles, to participate in master-planned developments. “We still buy finished lots from master-planned communities,” Heuser explained. “But we also need partners who can hold land off-balance sheet and deliver just-in-time inventory.”
Developers must understand and integrate these capital structures into their MPC delivery models. This may include structuring phased takedowns, co-investing in infrastructure, or managing third-party land banks that hold finished lots until builders are ready. Flexibility and financial sophistication are now essential for successful MPC execution.
Systemic risks
The scale and complexity of MPCs make them especially vulnerable to delays in infrastructure and approvals. Panelists highlighted how utility delivery and municipal review backlogs can stall housing completions and slow builder commitments. “Our biggest challenge right now is utilities, especially power in the Houston area,” Stinson said. “We have completed homes that can’t close because there’s no power.”
For master-planned developers, these risks must be proactively managed through early engagement with utilities, streamlined entitlement strategies, and long-term partnerships with municipalities. Successful MPCs will be those that can deliver entitled, build-ready land on a schedule that aligns with builder and consumer expectations. “The biggest issue on the development side today is timing,” noted Heuser.
Woliver encouraged transparency and early coordination with municipalities: “Open the books. Lead with a shared vision—not a spreadsheet.”
Consolidation
Industry consolidation is reshaping the landscape of master-planned communities. Large builders are acquiring developers, forming their own affiliated development arms, or demanding land-light deal structures that reduce reliance on traditional master developers. This reduces the pool of independent MPC developers and shifts negotiating leverage toward builders.
“The traditional standalone developer model will become extinct—at least as we’ve known it,” Woliver predicted. “Builders are stepping up, sourcing their own capital, doing their own development.” To thrive, MPC developers must leverage their local knowledge, placemaking expertise, and ability to deliver differentiated, high-quality environments that align with both builder returns and resident lifestyle demands.
As builder expectations evolve, master-planned community developers must adapt their approach to remain relevant and competitive. Today’s builders prioritize speed, flexibility, and capital efficiency—requiring developers to offer more than just entitled land. Successful MPC developers must become strategic partners who deliver differentiated communities, anticipate market shifts, and streamline delivery.
MPC developers should structure projects that accommodate builder-preferred capital models, such as land banking, joint ventures, or profit participation agreements. Providing options for phased takedowns and just-in-time lot delivery can make projects more attractive to capital-efficient builders. “Land banking, joint ventures, and flexible financing structures are critical,” noted Heuser.
Delivering value that builders cannot easily replicate is essential. MPC developers should focus on lifestyle programming and place-based branding that enhances builder product diversity and consumer appeal.
“Segmentation discipline and thoughtful planning” are essential to ensuring all builders can coexist, according to Heuser. High-quality amenities and thoughtful open space design can elevate a project beyond price competition.
Panelists recommended that developers engage municipalities and utility providers early and continuously. Consider hiring dedicated entitlement specialists and infrastructure coordinators to reduce delays. Explore memoranda of understanding or development agreements with cities to define clear review timelines.
“The biggest wins come from transparency,” Woliver noted, “and involving public officials early.”
Other advice
Regular feedback from builder partners can improve land planning, phasing, product segmentation, and shared marketing strategies. Creating a formal structure for collaboration ensures alignment throughout the lifecycle of the MPC.
Master developers also should adopt the role of community stewards, maintaining a guiding vision for the long-term quality and functionality of the MPC. This includes setting design guidelines, managing community governance, and supporting residents through transitions in builder presence. “The successful ones understand the entire value chain,” observed Woliver.
Use demographic, absorption, and resale data to adjust product segmentation and amenity investments. Stay responsive to shifting buyer preferences, especially as interest rates, household formations, and migration patterns evolve.
Panelists explained that the builder-developer relationship is undergoing a transformation that directly impacts the planning, financing, and delivery of MPCs. Builders now expect more control, speed, and capital efficiency. In response, developers must elevate their role—bringing creative solutions, strategic foresight, and collaborative tools to bear.
For MPCs to remain viable and competitive, according to panelists, developers must align more deeply with builder priorities while preserving the vision and cohesion that make large-scale communities successful. With proactive adaptation, MPCs can continue to serve as a preferred model for sustainable, amenitized housing at scale.
