Meritage Homes has tapped the brakes on its 305-home subdivision on Manteca's southeast edge, asking the city to postpone a Planning Commission review that was set for Thursday, Nov. 5 (via Manteca Bulletin). The builder pointed to market conditions, the Bulletin reported, and said it would reassess before the end of the year, hoping to move forward in the first quarter of 2027.
It's the third time the hearing has been pushed. According to the Bulletin, Meritage's first two requests came well ahead of the scheduled meetings. This one came at the last minute. The city's public hearing notice list shows the Sedan Annexation and Subdivision hearing was first noticed for Sept. 17 and continued to Nov. 5.
Thursday's item was a continued public hearing on whether the project is exempt from further review under the California Environmental Quality Act.
The site is 58.45 acres at 9715 Sedan Ave., on the west side of the road between two 90-degree curves. It's outside city limits, so it needs annexation. Most of the land has been farmed for strawberries, and it sits just south of Hat Ranch, where Richland Communities has city approval for 738 homes. When Meritage first submitted plans in July, the Bulletin reported 310 homes; the current plan is 305, with a 6-acre park and right-of-way for Antone Raymus Parkway, Atherton Drive and Sedan Avenue.
Mayor Gary Singh and Councilman Mike Morowit, who sit on the council's economic development subcommittee, negotiated a development agreement with Meritage earlier this year. On top of standard growth and utility connection fees, the builder agreed to a community benefit payment of $16,000 per home if paid at building permit, or $12,000 per home if paid when a phase starts. At the higher rate, the Bulletin puts the total at about $4.86 million. A 147-home subdivision on Airport Way in north Manteca carries the same condition.
The Bulletin also noted the delay came less than a month after a political action committee whose largest contributors have been the Building Industry Association spent $15,000 on social media ads against Singh in the mayor's race. The paper said that timing prompted speculation the delay was political, while also noting nothing in Meritage's request signaled it wanted to change the agreement. Meritage's stated reason is the market.
Meritage's third-quarter results, released Oct. 28, show a tougher market. The Scottsdale, Ariz.-based builder reported orders down 15% from a year earlier, to 3,083 homes, and closings down 14%, to 3,187. Home closing gross margin slipped to 17.4%. In its West region, which includes California, orders fell from 867 homes to 706.
CEO Phillippe Lord said the company cut land investment by almost 40% year over year, to $329 million, "as we expect market conditions to continue to be unpredictable over the next several quarters." Executive Chairman Steven Hilton said, "Constrained affordability weighed on consumer sentiment," and that Meritage "intentionally focused on preserving margins rather than pursuing a higher sales pace."
Why it matters for Contractors
Don't pencil Sedan Avenue into your 2027 schedule. Even if Meritage comes back in the first quarter, the project still needs its environmental finding, Planning Commission and council action, and annexation before anyone grades a lot. Houses there are a long way off.
The bigger signal is the land spending. When a national builder cuts land investment by nearly 40%, that's fewer new communities opening a year or two out, and that's when framing, concrete, plumbing and electrical subs in the Central Valley feel it. If most of your volume runs through one or two production builders, now's a good time to line up other work: remodels, custom homes, smaller local builders and commercial jobs.
Keep an eye on the Manteca Planning Commission, which meets the first and third Thursdays of the month at 6 p.m. When Sedan Avenue comes back on an agenda, that's your cue the project is moving again.