Local build-to-rent market set for boom
The growing built-to-rent and rent-to-own market is making its way to Conroe with city officials saying the housing options offer an alternative as mortgage rates remain high.
Nancy Mikeska, assistant city administrator and director of community development, said the single-family rental market is bridging the gap for those wanting to buy a home.
“There are people that cannot afford down payments so these (homes) will be very popular opportunities for some younger people or lower income people to actually get into a house and work toward ownership,” she said.
According to information from Freddie Mac, the average mortgage rate nationwide and in Texas is around 6.4 percent.
Those interest rates make housing options more critical, according to the National Rental Home Council.
“New housing investment and development is critical to ensuring American families have access to a range of housing options to fit their unique lifestyle needs, including both owner-occupied and rental housing,” said National Rental Home Council CEO David Howard in a February report.
Councilman Harry Hardman said broadening the range of housing options benefits Conroe.
“Options are always good for the consumer,” Hardman said. “Anything that gives people the flexibility to get into a house is something we need to take a look at but we need to look at things thoughtfully.”
The Conroe City Council has made several amendments to city ordinances over the last year to offer more attainable living while controlling growth and protecting trees.
“If we look at the subdivision plan overall and it makes sense, we will look at it,” Hardman said. “What’s going to be the best value for the citizens of Conroe.”
Hardman said local developers continue to create innovative housing options for residents.
“Necessity is the mother of invention,” Hardman said.
Mikeska said there are a handful of single-family rental projects at different levels of development in Conroe including Preserve at Conroe on Frazier Street which will feature 271 homes on 32 acres and the Villas at League Line on League Line Road which will include 183 homes on 22 acres.
Several other projects include one by Continental 710 Fund which is developing 16 acres off Drennan Road that will feature 288 two-story units with garages and another by Provident Realty which is developing 28 acres near Interstate 45 and FM 3083. The number of units was not yet determined.
“Rent-to-own projects are not a new concept. They have their place in Conroe’s market,” Mikeska said.
The Woodlands-based Signorelli Co. is developing Cielo which will span 261 acres and include 858 single-family lots just outside the city limits on Airport Road near FM 1484.
Mikeska said Cielo would include 129 rent-to-own homes on 40-foot lots, 262 homes on 40-foot lots and 159 homes on 50-foot lots. The development will include land for a new Conroe ISD elementary school.
“We welcome the opportunity to bring this new home development to Conroe, along with a new school to support the district’s growth, in a vibrant environment where area families can grow and thrive,” said Jeff Dewese, senior vice president of land division for The Signorelli Co.