If they’re serious about moving those lots they mght be able to come up with some smaller floorplans, more stock finishes, and fewer doodads. By all rights there should be a few suckers willing to buy strictly on price and there’s nothing wrong with building an average quality/average appeal home. The neighbors in their prior phases will be mad but they have bigger problems to worry about right now.

I’ll bet 2,100 SqFt @ $550k would probably find a few buyers right now.