Just One More Week
 
Industry Pulse Check Closes June 15. Learn more
 

Are Agrihoods a Growth Opportunity?

Design
Published

There was a time when golf courses, clubhouses, fitness centers, and pools ruled the community amenities offered in master planned communities (MPCs). Then it was collaborative “makerspaces,” dog-friendly commons, and more recently, pickleball courts.

But as land has become less available and more expensive, fewer master plan developers are teeing up golf courses. A number of them are using that land for rows of crops and groves of olive and citrus trees, creating “agrihoods” that not only feed an increasing consumer desire for health and wellness but also offer greater opportunity for community connection and what has become an enticement for home buyers in a competitive market.

A 2018 study by the Urban Land Institute (ULI) revealed that certain jurisdictions also award faster zoning approvals and entitlements for agrihoods, which helps to reduce project costs. In addition, the study found there’s increased buy-in from stakeholders, including public officials and investors, as well as the opportunity for local, state or federal incentives that reduce project costs through tax exemptions, reductions and rebates. In short, food is becoming smart business for developers.

Agrihoods: More Than a Garden

At a basic level, agrihoods are communities that feature a sincere farming component. While the definition can encompass several different models, an agrihood is not just a community garden but a working farm that produces food and can result in other benefits for the residents and even for the wider community beyond the MPC.

Although located mostly in the South and West, there are an estimated 200 agrihoods across the U.S. in at least 30 states, in rural communities to major cities, as Ed McMahon, a senior fellow of sustainable development at ULI, told Civil Eats, a nonprofit publication focused on sustainable food news.

Experts agree that an agrihood can be an effective — and still relatively novel — differentiator when home buyers are confronted with several MPCs competing for their attention and dollars. Naturally, people gravitate to places where they can engage with other people, and agrihoods have proven to be an effective conduit.

Learn more about the value of agrihoods, how to create them and why they’re attractive to today’s home buyers in this article from the November/December 2023 issue of Pro Builder magazine — produced by SGC Horizon, NAHB’s official media partner. NAHB members can access to the latest industry information through this excellent resource on nahb.org.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

IBS

Jun 08, 2026

IBS Scholarships Offer Members More Opportunities to Network and Learn

More members are able to experience the numerous benefits of attending the International Builders' Show thanks to the IBS Scholarship Program. Applications are now open for IBS 2027 scholarships, which will provide recipients with a show pass, travel stipend, hotel accommodations and more.

Spring Leadership Meeting

Jun 05, 2026

Watch Livestreams of Key Spring Leadership Meetings

NAHB leadership will gather June 9-13 for the 2026 Spring Leadership Meeting in Washington, D.C. Members and HBA staff not in attendance can view livestreams of key meetings.

View all

Latest Economic News

Economics

Jun 08, 2026

Mortgage Applications Retreat in May, with ARMs Gaining Share

Mortgage application activity declined again in May as higher mortgage rates continued to suppress the market, although adjustable-rate mortgages (ARM) gained some traction. According to the Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, applications fell 5.5% month-over-month in May on a seasonally adjusted basis.

Economics

Jun 05, 2026

U.S. Labor Market Remains Resilient in May

Despite rising inflation and ongoing economic uncertainty, the U.S. labor market remained resilient in May. Nonfarm payrolls increased for the third consecutive month, and the unemployment rate held steady at 4.3%.

Economics

Jun 04, 2026

Mortgage Rates Increase Further as Inflation Remains Elevated

Mortgage rates continued to increase in May as inflation accelerated. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.41% in May, up 7 basis points (bps) over April.