Cypress Edition | July 2024

BY DANICA LLOYD CONTRIBUTIONS BY JOVANNA AGUILAR & CASSANDRA JENKINS

Taking a step back

What to expect

Demographic consulting rm Population and Survey Analysts predicts multifamily housing growth in Cy-Fair ISD’s boundaries will exceed single-family housing growth for the rst time in 2025-26. “As the district builds out … the number of multifamily units becomes a greater proportion of the … contribution to the

Because interest rates have basically doubled in the last few years, the cost of ˜nancing new apartment projects is less sustainable for develop- ers today, McClenny said. “That causes a lot of problems for a lot of companies to have to ante up more capital to cover that,” he said. “The other thing that’s going on in Gulf Coast markets is insurance has really gone through the roof.” Apartment operators are paying more than double for insurance now than they were before the COVID-19 pandemic, according to RealPage, a property management software corporation. The national average insurance cost for apartment owners was $30 per unit per month in January 2019 and $70 per unit per month ˜ve years later. RealPage reports Houston apartment owners pay an even higher premium due to the region’s recent history of inclement weather events at $128 per unit per month. That’s about $384,000 to insure a complex with 250 units annually.

housing stock because it can be inll on small parcels of land in an area that’s otherwise built out,” President Stacey Tepera said at an April CFISD board meeting. Another emerging trend is built-to-rent neighborhoods of single-family homes for rent. PASA projects 1,345 total built-to-rent units over the next decade.

Cy-Fair housing projections

Multifamily

Single-family

5,000 3,000 4,000 2,000 1,000 0

10-year breakdown

Multifamily units (52.4%): 18,438 Single-family units (40.7%): 14,326 Built-to-rent units (3.8%): 1,345 Age-restricted units (3.1%): 1,080 Total units: 35,189

SOURCE: POPULATION AND SURVEY ANALYSTSCOMMUNITY IMPACT

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CYPRESS EDITION

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