Homebuilder goes to town with new concepts
SUBURBAN families are the bread and butter for most big builders in Houston, and David Weekley Homes is no exception. But the company is also expanding its product lines targeting urban dwellers and empty nesters.
The privately held builder is opening new communities as part of its Central Living division, which has been active in urban and semi-urban neighborhoods around the Heights and Spring Branch.
Homes there have been popular for both millennials and empty nesters, CEO John Johnson said.
Weekley’s Encore line of homes for those 55 and older opened in five cities last year. The line has yet to land in Houston, but the company is in search of sites.
David Weekley Homes was founded in Houston in 1976 and now operates in 22 cities across the U.S. It has 1,615 employees companywide, with 487 in Houston.
The builder kept its No. 5 spot on the Chronicle’s 2017 ranking of private companies. It reported annual revenue of $1.96 billion, up from $1.8 billion the year earlier.
Johnson expects the company to grow about 10 percent this year.
Demand has been strong for houses priced below $400,000, yet offering lower price points is a challenge.
“Finding good-value lots remains a challenge,” Johnson said. “It’s getting more and more expensive to develop land and create lots.”
Indeed, the cost of doing business has gone up amid higher material costs and labor shortages — particularly in the wake of Hurricane Harvey.
As many Houstonians find the housing market too expensive, buyers of new homes are increasingly selecting smaller homes on smaller lots.
The company’s average sales price in 2017 was about $430,000.