Relocation Spotlight: Newland Communities
Newland Communities is responsible for the development of some of the country’s most soughtafter master-planned communities, many of which are right here in the Houston area.
One of the most noteworthy of Newland’s communities is Cinco Ranch. Located in Katy, Cinco Ranch remains one of the most popular destinations for people who relocate to Houston.
According to Ted Nelson, Newland’s president and chief operating officer for the west region, the most important thing that Newland does is to create a community feel for its residents.
During a recent interview, Nelson discussed the upcoming completion of Cinco Ranch, a newer community that the company is excited about, and his thoughts on the Houston market.
Following are excerpts from our conversation.
MS: Can you give me a snapshot of the housing market within your Houston communities so far this year?
TN: It has been interesting, because there is so much pent-up demand in the market. The way that we look at it, is that for every 1.8 to 2 jobs created in the market, that there is the need for one new housing unit. The Houston housing market is very good, but it has changed from the standpoint that we are seeing those pent-up demand buyers continue at a good pace, but the number of relocation buyers, who are traditionally a higher income buyer, have gone way down.
MS: How close is Cinco Ranch to being completed, and what is still available there for new home buyers?
TN: We will sell out of all of our lots this year. The tail end of Cinco Ranch is selling very well, and at a very high price point. I believe our home sales to date in Cinco are about $530,000 on average, and that’s because of the relative trust in the Cinco brand.
MS: In spite of the recent downturn within the energy sector, which affected many Katy residents, the housing market in the area still fared relatively well. To what do you attribute that?
TN: The higher priced part of the market is certainly lower than it would have been if we didn’t have the oil recession, but overall the Katy area remains a very sought-after area, because of its proximity to employment, and the power of the Katy Independent School District.
MS: As Cinco Ranch nears completion, what new community are you most excited to introduce to newcomers?
TN: We are very excited about our new project, called Elyson. It is located north of Katy, but still in the Katy ISD, on the Grand Parkway at FM 529. We opened the project late fall last year, and sales have been good.
We are already working on our second phase of lots, so that we can bring more options to home buyers. We opened with five price points, and by the end of this year we will have eight or nine different price points.
Elyson will have more commercial retail opportunities than Cinco. We will devote over 500 acres to commercial mixed-use development over the course of the life of Elyson. So, we are particularly excited about the long-term potential for commercial opportunities.
MS: Are there any notable trends that you are seeing among today’s home buyers?
TN: Yes, it’s the transition to the millennial buyer. Millennials, for a variety of reasons, have been slower to make changes as compared to the baby boomers. A good number of millennials are buying homes now, and we are extremely pleased about that, but it has caused our whole industry to rethink house plans, and rethink our neighborhoods and amenities. It’s a small shift, which we are happy to do to accommodate these different buyers.
MS: Do you feel more bullish or bearish about Houston this year?
TN: Houston remains one of the most affordable housing markets in the country. Companies absolutely consider the cost of housing for their employees when they are looking at establishing or moving a major office. Housing prices have gone up faster than I would have liked to have seen them, but Houston is still very affordable.
MS: What do you see as important to Newland today as it relates to the Houston economic landscape?
TN: I think the most important thing that is important to Newland, because we are part of Houston and its continued diversification, is the intellectual capital that is here.
Houston’s medical industry and oil industry position the city for a whole new future. I think Houston has a lot of promise, and there’s nothing that I can see that says Houston isn’t going to be a major player on a global scale for the long-term attraction and development of new businesses.
Michelle Sandlin is an award-winning writer, journalist and global mobility industry expert. Her work is frequently featured in Worldwide ERC’s Mobility magazine, and in various business and industry related publications and corporate blogs. Follow her on Facebook: www.facebook.com/TheMichelleSandlin and on Twitter: @MichelleSandlin. Also visit “On the Move” at blog.chron.com/ onthemove.