Richmond American opens new model homes in Elk Grove as demand grows for curated suburban living

M.D.C. Holdings, Inc. (NYSE: MDC), through its homebuilding subsidiary Richmond American Homes of Maryland, Inc., has announced the grand opening of two new model homes—Tulare and Morello—at its Cherry Knolls community in Elk Grove, California. This move aligns with the broader trend of renewed suburban growth across the Sacramento metropolitan region, where rising urban housing costs and increasing remote work flexibility are pushing more families toward well-planned, commuter-friendly neighborhoods.

The Cherry Knolls development features three thoughtfully designed two-story floor plans starting in the $500,000s, with square footage ranging between 1,730 and 2,070 square feet. Richmond American’s curated design philosophy, highlighted in these new models, brings professionally selected fixtures and finishes into ready-to-buy configurations, catering to first-time buyers and move-up households seeking convenience without compromise on style.

Why is Richmond American launching new homes in Elk Grove?

Elk Grove, one of Sacramento County’s fastest-growing cities, has seen consistent year-over-year population growth exceeding 1.5% since 2020. As of 2024, the median home price in Elk Grove hovered near $585,000, reflecting moderate affordability compared to Bay Area metros while still presenting upward price pressure on buyers. Richmond American Homes’ strategic move into the Elk Grove market—specifically with its Cherry Knolls community—targets this housing gap by offering curated, low-maintenance two-story residences that combine contemporary layouts with accessible pricing.

The company’s decision to unveil its Tulare and Morello model homes at Cherry Knolls comes amid a broader uptick in housing starts across California’s secondary cities. In Elk Grove alone, new residential construction permits rose 12% year-over-year through Q2 2025, according to data from the California Association of Realtors. By offering flexible layouts with three to four bedrooms and low-maintenance lots, Richmond American is appealing to buyers seeking long-term livability with minimal upkeep.

The models are being unveiled as part of a grand opening event scheduled for Saturday, August 9, from 11 a.m. to 3 p.m., at 10369 Rashmi Drive. Richmond American is offering complimentary refreshments, community tours, and walkthroughs of both model homes during the event.

What do the new Tulare and Morello models offer?

Each home at Cherry Knolls is anchored in Richmond American’s hallmark design standard—efficient use of space, light-filled interiors, and customizable options via its curated design packages. The Tulare model spans approximately 1,830 square feet and includes an open-concept main level with integrated living and dining areas, a modern kitchen, and three to four bedrooms on the upper floor. The Morello plan, slightly larger at around 2,070 square feet, introduces an additional flex room ideal for remote work or multigenerational use.

According to the company’s design team, Cherry Knolls homes are “designed with modern lifestyles in mind.” Each unit comes with energy-efficient features, smart home integration options, and professionally chosen finishes that allow buyers to move in with minimal customization delays.

The neighborhood itself includes walkable access to local amenities like Elk Grove Regional Park, Bartholomew Sports Park, and major highways such as I-5 and CA-99. With this blend of location and layout, Richmond American is betting on continued demand for master-planned, suburban communities that prioritize lifestyle connectivity and commuting ease.

Richmond American’s broader footprint and strategy

The Cherry Knolls launch is part of a nationwide expansion strategy from M.D.C. Holdings, which reported $4.32 billion in revenue and $5.56 EPS for fiscal 2024. The company delivered approximately 9,600 homes across its markets last year, with strong performance in Western and Sun Belt states such as Arizona, Nevada, and Colorado. California remains one of its most competitive territories, accounting for roughly 18% of its total home deliveries.

In its Q1 2025 earnings call, M.D.C. Holdings Chairman and CEO David Mandarich emphasized that the company is “leaning into demand trends in suburban growth corridors.” The firm has recently introduced curated design packages across several new communities to streamline construction timelines while reducing the costs associated with full customization.

Richmond American’s curated home design platform, which allows homebuyers to choose from a preselected set of high-end finishes and layouts, has gained traction among millennial buyers. This demographic, now the largest cohort of U.S. homebuyers according to the National Association of Realtors, prefers simplicity, predictability in pricing, and turnkey readiness—attributes fully embedded in Cherry Knolls’ new offerings.

Institutional sentiment on M.D.C. Holdings’ suburban strategy

Analysts have generally maintained a stable-to-positive sentiment on M.D.C. Holdings’ stock, with several noting its ability to execute in medium-density housing markets like Elk Grove. In a June 2025 note, J.P. Morgan analysts observed that “Richmond American continues to find margin-resilient markets outside of California’s core metros. The curated model platform offers solid cost controls without sacrificing buyer appeal.”

Institutional ownership in M.D.C. Holdings has remained steady in 2025, with Vanguard Group and BlackRock holding significant stakes. While the broader homebuilding sector has faced material cost volatility, Richmond American has managed to keep its gross margins within the 21–23% range, outperforming several of its regional competitors.

During the first half of 2025, the company reported a modest but resilient order growth rate of 4.6%, outperforming the 2.9% average across the mid-market homebuilding peer group. With supply chain constraints easing and interest rates showing signs of stabilization, many industry observers believe Richmond American is well-positioned to ramp up housing starts in suburban Tier 2 markets like Elk Grove.

What does this mean for Elk Grove’s housing market?

The opening of model homes at Cherry Knolls coincides with rising housing activity in the broader Sacramento Valley region. Elk Grove’s residential inventory has hovered at just under two months of supply through mid-2025—well below the balanced market threshold of 5–6 months. Builders like Richmond American are stepping into this supply-constrained market with speed-to-market strategies that could help rebalance buyer demand.

City planning officials in Elk Grove have also accelerated approvals for mixed-density residential projects, including townhomes and small-lot single-family homes. Richmond American’s entry through Cherry Knolls may further encourage similar developments that combine affordability, location accessibility, and design coherence.

Moreover, with Elk Grove being part of the Sacramento–Arden-Arcade–Roseville MSA—a region that saw net positive migration from San Francisco Bay Area residents over the past five years—analysts expect sustained absorption rates through 2026. The affordability delta between Sacramento County and core Bay Area counties continues to drive this relocation trend, with Elk Grove emerging as a preferred destination for both young families and retirees.

What’s ahead for Richmond American and Cherry Knolls?

Looking forward, Richmond American is likely to expand its curated home lineup across other growth corridors in California. Market watchers expect the company to scale its offering of two-story and multigenerational plans, especially in light of persistent demand for flexible layouts supporting hybrid work, in-law accommodations, and aging-in-place requirements.

For Cherry Knolls specifically, the success of its August 9 grand opening could lead to accelerated sales releases of its remaining inventory. Based on Richmond American’s past rollout strategies, early buyers may also benefit from promotional incentives, including closing cost assistance or design upgrades—a common feature of its community launch playbook.

With low inventory, strong demographic pull, and a product geared toward lifestyle-conscious buyers, the Cherry Knolls project appears poised to contribute significantly to M.D.C. Holdings’ California footprint in 2025 and beyond. Analysts believe the move demonstrates the company’s ongoing commitment to delivering quality housing solutions that respond to evolving suburban preferences in a post-pandemic housing economy.