Lennar Corp. has broken ground on a housing development in upstate New York that will sit between two state parks.
Once finished, the development, called Tuxedo Reserve, will rest on a 1,200-acre plot between Harriman State Park and Sterling Forest in Tuxedo, New York, the homebuilder said this week. The project will feature single-family homes and townhouses by Lennar and a shopping center — called The Village — by Related Cos. of New York.
Lennar didn't disclose how many homes it will build or the starting price. It has a townhouse and single-family property in Hopewell, New Jersey, where prices range from $500,000 to $1 million. In the next town over, Pennington, a Lennar property has lofts and townhouses starting at $400,000.
Tuxedo Reserve is a dream that began decades ago, a vision of a neighborhood within 70,000 acres of preserved woodlands, said Greg Gushee, executive vice president at Related Cos.
"Tuxedo Reserve started with a vision over 40 years ago to transform the area by creating the first new, built-from-the-ground-up village in generations inspired by small towns and hamlets across America," he said in a statement.
Lennar will begin selling single-family homes and townhouses this summer. Businesses can begin leasing commercial space in The Village next year, the developer said.
Lennar is the nation's second-largest home builder, with developments in 29 other states, including California, Georgia and Texas. Tuxedo Reserve marks Lennar's first development in New York.
Tuxedo is an "exceptional location," and it expands Lennar's presence in the Empire State, the company's New York/New Jersey manager, Dana Romano, said in a statement.
Hudson Valley has pressing need for housing
Tuxedo is a small, rural town of about 4,000 people along New York's Hudson Valley — roughly 30 miles north of Manhattan. Within the town sits an even smaller gated village called Tuxedo Park — whose residents have included Whoopi Goldberg and Cyndi Lauper. Tuxedo is also known for housing the New York Renaissance Faire.
Tuxedo Reserve is coming online at a time when the Hudson Valley has a pressing need for more housing and prices of existing homes in the area have skyrocketed, local market watchers say. The median home sales price in Orange County — where Tuxedo resides — grew from $259,751 in 2019 to $430,000 last year, according to data from the New York State Association of Realtors.
"The region has also severely underbuilt housing, which has contributed to a depressed housing stock and a situation where demand has far outpaced supply," a 2024 housing outlook from local research firm Hudson Valley Pattern for Progress said. "And, although data are scant, many corporations are also purchasing homes to rent them back to local families."
Home prices started to climb sharply when New York City residents fled the boroughs during the pandemic.
"Thousands of households migrated north from the New York City metro area and purchased homes for more than the asking prices," Pattern for Progress said. "Wealthier households invested in single-family homes in our region, using them as short-term rentals, second homes, or as commuter retreats where they can work from home."