New houses climb out of reach for many local first-time buyers
Historically, workingclass Houstonians shopping for their first homes often opted for something new. Part of the excitement is getting to pick not just a specific lot but also paint colors, flooring and other interior finishes for the house.
But rising prices and a lack of inventory have put new homes in Houston increasingly out of reach for first-time buyers.
One housing analyst recently called the under-$200,000 market for new construction an endangered species.
Nowadays, those in the market for new homes are likely to be more established financially. Maybe they’ve owned their first home already and are trading up for something bigger.
It’s more a function of supply than of buyer demand.
During the recent housing boom, land prices got to a point that builders had to construct primarily high-end homes to see any financial return.
Once-affordable neighborhoods were suddenly expensive.
Agood example is The Woodlands, a masterplanned community 27 miles north of downtown created four decades ago to house families from a wide range of socioeconomic
backgrounds. Today, a new home for $300,000 is virtually nonexistent.
Across the Houston region, the average price of a new home was $363,473 during the first three months of this year. That was up slightly over what it was a year ago but down from the previous quarter, according to new data from Metrostudy.
After several years of growth, prices for new homes are stabilizing. Still, the entry-level price is now more in the $200,000 to $300,000 range, said Lawrence Dean, Metrostudy’s Houston regional director.
It’s part of the natural maturing of the Houston housing market, which, he said, will soon begin to look more like Dallas where first-time buyers on a budget often can’t afford a new home.
“It just means you buy a 10-year-old home for your first house,” Dean said, “and then a new home for your second.” Marketing history in the Heights
The city is selling one of Houston’s early pumping stations with three historic structures dating back to as early as 1928.
The buildings are on a 2-acre tract in the Heights along Nicholson between West 19th and West 20th. Asecond tract, 1.8 acres catty-corner from the first, is also for sale.
The plant, originally established in the late 1800s, provided water to the Heights, one of the first planned communities in Texas. The structures include: • A1928 concrete and brick reservoir building designed to hold 75,000 gallons. It’s recorded in the National Register of Historic Places.
• An Art Deco pump- ing station built in 1939. According to a city preservation document, the structure was funded by President Franklin D. Roosevelt’s Depressionera Works Progress Administration, which was created to provide new jobs.
• Apump building constructed in 1949.
Late last year, Houston City Council designated the properties as protected historic landmarks.
Real estate broker Dave Cook of Cushman & Wakefield said the city has received “very substantial and good offers and good uses for the property.” Cushman & Wakefield and Avro Realty Advisors are listing the properties for the city.
They are marketing them as a historic rehabilitation project that could qualify for tax credits.