The Woodlands Edition | July 2024

Real estate

BY ANGELA BONILLA, VANESSA HOLT & JESSICA SHORTEN

Multifamily projects see growth in The Woodlands region

With single-family homes in The Woodlands nearly built out, developers are turning their attention to multifamily developments. The Houston region has seen more multifamily development and lower rents since mid-2022, according to MRI ApartmentData, and as of late June two multifamily developments were planned within the boundaries of The Woodlands. While costs have not yet been disclosed, both of those projects will be luxury high rises. A 13-story building is under construction at 1 Riva Row, which developer Howard Hughes has characterized as the ƒrst to o„er penthouses in a multifamily community in The Woodlands. Construction is slated to be complete in 2025. The Ritz-Carlton Residences were announced in October for Lake Woodlands, with 15 stories and 111 condominium homes available for purchase, rather than as rental units. Groundbreaking is set for later this year, developers said. Seven other multifamily dwellings under construction, proposed or completed in The Woodlands area since 2023 are located outside township boundaries.

Multifamily development since 2023

Units opened in the last year Total units: 414

Units under construction Total units: 1,136

Units planned Total units: 730

Riva Row Ritz-Carlton Residences

A

The Woodlands

B

1488

242

LAKE WOODLANDS DR.

307

RESEARCH FOREST DR.

45

229

111

A

B

268

GROGANS MILL RD.

269

390

292

225

249

99 TOLL

SAWDUST RD.

189

2978

N

SOURCE: MRI APARTMENTDATA”COMMUNITY IMPACT

The overview

The specics

units have seen a downward trend since 2022 despite being higher than other regional rents. However, Travis Guinn, vice president of devel- opment and construction for Howard Hughes, said new construction in The Woodlands commands a niche market una‡ected by regional trends. “We have a very, very captive demand of an audience of people wanting to be here that we can supply housing products to meet their needs,” Guinn said.

With 19,000 apartment units under construction in the Greater Houston area and another 33,000 planned as of June 1, supply greatly exceeds demand for multifamily housing, said Patrick Jan- kowski, chief economist and senior vice president of research for the Greater Houston Partnership. As a result, the surplus of apartments across the Greater Houston region has meant lower rents, said Bruce McClenny, president of MRI Apartment- Data. In The Woodlands area, rents for existing

Overlooking the Woodlands Waterway, 1 Riva Row, a multifamily community, will be completed in 2025 by developer Howard Hughes. The community will oer a total of 268 units in a 13-story building along with amenities including a sky lounge, a gym, and storage facilities for bikes and kayaks. Guinn said it will oer housing comparable to what buyers might expect from a single-family home in The Woodlands. “The demographic that we target here in The Woodlands is that of luxury renters, typically an empty nester, someone that’s downsizing from their home,” Guinn said. The Ritz-Carlton Residences will be located on Lake Woodlands, and while purchase prices for the condominiums have not been publicly disclosed, developers said half of the 111 units sold in the ‰rst week of sales, representing about $250 million.

Multifamily rental rates in The Woodlands area*

The Woodlands/Conroe South

Tomball/Spring

$1,794

$2,000 $1,000 $1,200 $1,400 $1,600 $1,800 $0

$1,729

1488

242

249

45

$1,585

$1,537

99 TOLL

290

June

May

2022

2023

2024

N

* FOR CLASS A UNITS

SOURCE: MRI APARTMENTDATA˜COMMUNITY IMPACT

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THE WOODLANDS EDITION

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