Cy-Fair Edition | May 2022

NEW AND PROPOSED

Several new multifamily developments are under construction in Cy-Fair with more planned for the future. SOURCE: APARTMENTDATA.COM/COMMUNITY IMPACT NEWSPAPER

Population and Survey Analysts projects Cy-Fair will have more multifamily units added to the market annually than single-family units by 2027.

COMING SOON

KEY

4,003 new housing units

14 new multifamily complexes

Under construction

Planned apartments

249

d e v e l o p m e n t s

99 TOLL

Bridgeland Creek Pkwy.

192 units

336 units

1960

290

NEW AND PROPOSED DEVELOPMENTS (CONT.) 5. CTC at Cypress 6. Cadence Creek at Towne Lake 7. Fry and Tuckerton 8. Skyview Flats 9. First Met Apartments 10. Prose at Huffmeister 11. 55 Resort at Cypress Creek Lakes 12. Esperanza at Queenston

The Residences at Arbor Oaks

Highpark

MIKAH BOYD/COMMUNITY IMPACT NEWSPAPER

529

300 units

358 units

e Y o r k R d .

13. Fidelis at Cypress 14. Marvida Duplexes

Starling at Bridgeland

Reserve at Cypress

RENDERING COURTESY D'AGOSTINO COS.

MIKAH BOYD/COMMUNITY IMPACT NEWSPAPER

boundaries with more than 18,000 new units projected to be completed between 2021-31. In its latest report, the group also predicts the number of new multifamily units added to the market each year will outpace single-family units by 2027. While there is an increase in devel- opment, there is a gap in supply and demand, driving rent prices higher, McClenny said. “All of a sudden it’s like, wow, we truly have a situation where there is

rapid filling of apartment complexes. The imbalance of supply and demand has pushed rental prices up, data shows. ApartmentData.com reported Cy-Fair’s average rental rate rose 17% in two years from $1,070 in April 2020 to $1,253 this April. McClenny said the trend of high interest rates on single-family homes and price increases in double-digit percentages make for an unsustain- able market. “This current trend is favoring rent-

There are 500,000 cost-burdened households in Harris County and a need for over 200,000 housing units for residents making up to 120% of the median income over the next 10 years, according to the Rice University Kinder Institute’s 10-year Housing Needs Assessment from 2021. Accord- ing to this report, the number of rent- er-occupied units locally ranges from 12% in north Cypress to 47% in the area surrounding Jersey Village. Martinez also noted the supply is not keeping up with the demand but specified this is largely the case in cer- tain income bands. McClenny agreed, pointing out some large developers have shifted away from creating more luxury complexes to making housing for the working person. Flooding themarket Harris County officials are not the only ones who have made note of the lack of supply. Multifamily housing developers and single-family housing developers have taken notice and are beginning to take action. Venterra has Highpark in the works with a projected opening in the fall, and Alliance Residential has proposed a 350-unit development known as Prose on Huffmeister Road. While Highpark will feature amenities for those coming fromthe inner city, Prose is one McClenny said will be designed

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“The real estate market has reached an unprecedented demand for housing with multifamily options at the forefront,” said Neil Simon, vice president of development for Ven- terra Realty, which is building High- park, a 336-unit complex in Cy-Fair. “Occupancy numbers are hitting an all-time high across the U.S. with 95% of apartment units spoken for. This increasing need for housing has led to a significant ramp-up in production and construction of multifamily com- munities bymore than 25%nationally in 2021 with the Houston metroplex ranking in the top 10 of 2021.” McClenny said the economy plays a part in the housing market as well. He said jobgrowth in the energy sector has pulled people fromall over the country to Houston, flooding the single-family and multifamily housing markets. To combat this lack of supply, there are 14 new multifamily hous- ing developments proposed or under construction in Cy-Fair to provide the area with more than 4,000 new units in the next few years, according to ApartmentData.com. According to a report demograph- ics firm Population and Survey Ana- lysts released in April, multifamily units make up 47% of all new pro- jected housing within Cy-Fair ISD

UNFORTUNATELY, THERE’S GOING TOBE SOME KIND OF SHOCK. NOBODYKNOWSWHAT IT IS, BUT THIS IS ABUBBLE OF SORTS THAT CAN’T CONTINUE. BRUCE MCCLENNY, PRESIDENT OF APARTMENTDATA.COM

a lack of housing—both single-family and multifamily housing—and that lack of supply is what drives these prices higher to levels like we’ve never seen,” McClenny said. Rent increases McClenny said the market is sat- urated with buyers, but the supply is still down due to lingering supply chain issues preventing construction. While production recovers, many are looking for homes, leading to the

ing, and I don’t know how long this is going to last,” McClenny said. “Unfor- tunately, there’s going to be some kind of shock. Nobody knows what it is, but this is a bubble of sorts that can’t continue.” Price increases are hitting those who were already in low-income housing or on the verge of needing low-income housing, said Rene Martinez, the chief community and housing development officer at the Harris County Commu- nity Services Department.

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