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’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.
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