Construction & Process

Tract Home

Also known as: Production Home, Cookie-Cutter Home

Definition

A home built as part of a planned community or subdivision using one of a limited number of standardized floor plans. Most homes sold by national builders are tract homes.

Detailed Explanation

Tract homes are built in subdivisions where multiple homes share the same or similar floor plans. Buyers can typically choose from a menu of pre-selected upgrades and finishes, but the basic design is fixed.

National builders like D.R. Horton, Lennar, and PulteGroup primarily build tract homes. The economies of scale from building many similar homes allow for lower prices.

The standardized nature of tract homes extends to their contracts — the purchase agreements are standardized contracts of adhesion with little room for negotiation.

In Your Contract

Tract home contracts are typically the most standardized and least negotiable. Expect a take-it-or-leave-it purchase agreement with multiple addenda.

Key Points

  • 1Built from standardized floor plans in planned communities.
  • 2Limited customization — choose from pre-selected options.
  • 3Lower price point due to economies of scale.
  • 4Contracts are standardized and non-negotiable.
  • 5Most new construction in the U.S. is tract housing.

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This article is for informational and educational purposes only. It does not constitute legal advice. Consult a licensed attorney in your state before making legal decisions.