Houston Neighborhoods - which areas are seeing improvement?

Question

I hear a lot about various parts of town that are undergoing gentrification. This ward, that ward... Indy Heights, Acres Homes, Sunnyside, etc. You do see some new small MF going up in some of these areas, but I really never have gotten a good idea of what is really going in where.

So I had a bit of downtime to play around, so I fired up Redfin and just played with some parameters. I selected Harris County, SFR under $225K and built in 2017 or newer. Figured OK, this should provide at least some indication of new affordable housing going in around town. I expected to see maybe some little pockets of activity in certain areas...

You can clearly see some new stuff going in there in Acres Homes in 77088. Sunnyside is a larger area and less concentrated, but it is clearly happening there. And Settegast has something going on there in 77028.

The new build activity in Acres Homes intrigued me. They are putting in these $1175 sf houses, selling for $145k-$150k and, and somebody is renting them for $1200. Pulled the MLS data to check on it, and it isn't just 1-2 houses. Cannot imagine these are cashflowing - maybe they are banking for appreciation here? Figuring this gentrification from Indy Heights is going to continue to push north?

Shahriar Khan · Answer

@Mark Sewell almost all the new build in Acre Homes are using Land Bank aka free land and buyers have 20K govt down payment assist to buy thus price is lower. Sunny side is being built using retail priced land thus price is higher . And they all are building less then 70-80/SQFT which isnt possible unless you have a team of your own.

Vijaianand Thirunageswaram · Answer

I have to agree with @Shahriar Khan on the land price in regard to Sunnyhill but Acrehomes there are retail land available and they are priced bit higher these days. But there are builders who do low quality builds with government subidy bought lands in large scale. We have 2 projects in ACREHOMES going on at this point both retail land purchase. Unless you buy the land at right price and provide quality homes, it's hard to compete in these markets.

Vijaianand Thirunageswaram · Answer

@Sean

@Sean York We develop to sell not for rent. You can take look at our project details at, http://ompropertysolutionstx.com/projects/design-and-build/

Sean York · Answer

@Adriel Hsu I would also be interested in being added to your list for available properties. @Vijaianand Thirunageswaram are you developing and renting or selling completed townhomes? Where are your properties located? And what is the rent/price point?

Adriel Hsu · Answer

@Vijaianand Thirunageswaram I sent you a direct message on here. It would be quicker to reach me on email, so please respond back with that.

Thanks

Vijaianand Thirunageswaram · Answer

@Adriel Hsu Do let me know if you have good lots? We look for wider lots with more frontage so we can replat and do more instead of narrow lots coming out these days.

Adriel Hsu · Answer

I've been flipping lots in Acres Homes and Settegast the past 6 months to developers and they are HOT. I've flipped 20 lots between those 2 areas in 2020 alone and inventory rarely lasts more than 30 days once I list on MLS.

@Vijaianand Thirunageswaram and @Mark Sewell message me if you are interested in lots in these areas so I can keep you in mind to have first look before they go MLS.

Sean York · Answer

Following. . .Targeting these areas for new development duplex/fourplex/townhomes. Interested to hear from folks investing/developing in area and whether there is room for competition.

Houston Neighborhoods - which areas are seeing improvement?

Houston Neighborhoods - which areas are seeing improvement?

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