When Surge Homes launched plans to develop 10 residential projects inside the Bayou City, the Houston developer initially proposed a mix of single-family homes, townhomes and condominiums.
However, amid strong demand for its brand of affordable condos, Surge Homes is rethinking its development strategy, said Benoit Lemieux, co-owner of Surge Homes.
“We definitely will continue to build single-family homes and townhomes,” Lemieux said. “However, in our portfolio of developments, there will be more condos than what was originally planned in 2014 because of the tremendous tsunami of buyers.”
- Parc at Midtown saw half of its 58 condo units sell out in three months. Today, only two condos remain on the market in the condo and townhome community, located at 2401 Crawford St. in Midtown. Condos in Parc at Midtown start from $172,300 for a 465-square-foot unit.
- Museum BLVD attracted more than 100 interested buyers, each of whom put a $1,900 deposit down to reserve the right to purchase one of 49 condo units. The $11 million condo project is proposed for 4819 Caroline St. in the Museum District, where the median home price is $745,000. Condos in Museum BLVD range in size from 420 to 1,099 square feet and in price from $140,000s to the $340,000s.
- The Isabella at Midtown, which was announced earlier this month, saw 12 interested buyers put deposits down. The $42 million condo project is proposed for 4001 Main St. in Midtown. Units in The Isabella will range in size from 420 to 1,880 square feet and in price from the $150,000s to the $600,000s.
“We’re selling faster than we can build them,” Lemieux said.
Surge Homes’ affordable condos appeal to both Millennial and Baby Boomers, who desire an easy-to-maintain home inside the 610 Loop. Both demographics do not have children, and don’t mind living in a smaller unit or even a micro-unit spanning less than 500 square feet.
“Millennials and empty nesters want a product that starts from $150,000 within Houston’s best neighborhoods,” Lemieux said.
Apartment rents have skyrocketed in recent years, so much so that many young professionals and retirees are considering buying an affordable condo instead, Lemieux said.
“Rents are still so high that there’s more of an incentive to buy,” Lemieux said. “Houston has a plethora of apartments for rent, all very nice, but they’re making the owners more wealthy. We’re proposing to build your own wealth.”
Paul Takahashi covers residential and multifamily commercial real estate, as well as education, for the Houston Business Journal. Follow him on Twitter for more.
For original news article, click here.
