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

Membership

Jul 21, 2025

NAHB Mourns Passing of Rick Herman

NAHB mourns the passing of Rick Herman, longtime Executive Officer of the Rochester Home Builders Association (RHBA) in New York. Rick joined RHBA 30 years ago and served as a tireless advocate for members in Rochester and around the state.

Construction Costs

Jul 18, 2025

Metals and Equipment Drove Material Prices Higher in June

Residential building material prices rose in June, driven primarily by higher construction machinery and equipment part prices, based on data from the most recent Producer Price Index (PPI). Metal commodities also experienced significant increases, following recently implemented tariffs on steel and aluminum.

View all

Latest Economic News

Economics

Jul 21, 2025

Use of Private Water and Sewer Systems in New Single-Family Homes

The share of new single-family homes built with individual septic systems declined slightly in 2024 compared to the previous year, while the share of homes served by private wells remained steady.

Economics

Jul 21, 2025

Sales of Lower-Priced New Single-Family Homes Declined Over the Past Five Years

From 2020 to 2024, sales of lower-priced new homes declined significantly as the market moved toward higher-priced segments. Rising construction costs—driven by inflation, supply chain disruptions, and labor shortages—as well as higher regulatory costs, made it increasingly difficult for builders to construct affordable homes.

Economics

Jul 18, 2025

State-Level Employment Situation: June 2025

Nonfarm payroll employment increased in 27 states in June compared to the previous month, while employment decreased in 23 states and the District of Columbia. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 147,000 in June following a gain of 144,000 jobs in May.