RECON for May 19, 2023RECON for May 19, 20232023-05-19T05:00:00Z2023-05-19T05:00:00Z

RECON Texas Real Estate Research Center
'COME RAIN OR HIGH WATER: Flood, Water Damage, and the Homeowner's Insurance Policy.' With recent deluges, Texans need to check more than their rain gauges. Homeowners should consider their insurance needs for likely types of 'water damage' loss that could occur, then read their policies carefully to understand what is and is not covered. Read more here. 
May 19, 2023

Realtor.com: Georgetown fastest-growing U.S. city

GEORGETOWN (National Association of Realtors) – For the second year in a row, Georgetown had the most growth of any U.S. city. Its population ballooned by about 14.4 percent from July 1, 2021, to July 1, 2022, according to a recent U.S. Census Bureau report.

The median home list price in Georgetown was $525,000 in April, according to Realtor.com data. That’s about $175,000 less than in Austin.

“Austin got so much more expensive that people flocked to the suburbs because they were somewhat less expensive,” says Gary Maler, executive director of the Texas Real Estate Research Center. “There is just a lot of construction. We haven’t been able to build it fast enough."

Four of the list's top-five cities are in Texas. In addition to Georgetown, the list included Kyle, Leander, and Little Elm at third, fourth, and fifth, respectively. Maler credits a number of things for Texas' popularity.

“Jobs in Texas outpace many other states. There’s a pro-business attitude in Texas. There’s a variety of cultures and sceneries in Texas. We have relatively lower costs than other states, although we’re starting to lose that,” says Maler.

Austin commuters find more space for less money

AUSTIN (Point2– Suburbs still offer refuge from the big city and, according to a new study, even the most expensive markets usually have less-expensive options for those willing to commute.  

Point2 looked at the 20 most populous and most expensive U.S. cities and mapped all 777 suburbs that are within a 30-mile driving distance from the city center. Here’s what they noted about Austin.

  • The price  per sf of Austin living space is $320, placing it among the top 20 largest and most expensive U.S. cities. However, many suburbs close to the city promise more space for much lower prices.
  • Eighty-nine percent of the suburbs within 30 miles of the city are more affordable than the urban hub.
  • With a 42 percent difference, Manor has the lowest price per sf compared with the city, followed by Lockhart, Kyle, Hutto, and Elgin, which boast prices per sf 40 percent and 41 percent lower than Austin.
  • Prices are between 30 percent and 38 percent lower than the city in suburbs like San Marcos, Pflugerville, Buda, Round Rock, Georgetown, Leander, Cedar Park, and Bastrop.
  • At the opposite end of the spectrum, two suburbs near Austin (West Lake Hills, Rollingwood) are out of reach for the average homebuyer with prices per sf of living space exceeding that of the main city by more than 200 percent.
  • Nationwide, the most affordable suburbs are on the East Coast, but Austin made it in the top 20 largest and most expensive cities with the highest shares of affordable suburbs.
Helping Texans make the best real estate decisions since 1971
PROPELLED BY THE BANKRUPTCY of Silicon Valley Bank, Texas business bankruptcy filings hit their highest level since April 2020, showing signs of a cooling economy. Read this month's Outlook for the Texas Economy.

New Conroe hotel-convention center opens its doors this month

CONROE (Houston Chronicle) – A long-anticipated $107 million hotel and convention center is scheduled to open May 25.

The Hyatt Regency Conroe, at 1001 Grand Central Parkway, is within Johnson Development’s Grand Central Park master-planned community near I-45 and Loop 336.

The hotel would be one of the only so-called upper-upscale, full-service hotels in Conroe outside of a resort, with amenities, services and design on par with properties in The Woodlands, such as the Westin, Marriott and The Woodlands Resort, said Roberto Intriago, general manager of Hyatt Regency Conroe.

The hotel will have 30,000 sf for conventions and gatherings. One of its two ballrooms is a 14,000-sf Regency Ballroom capable of hosting weddings, conferences, receptions and other events with up to 1,000 guests. 

The hotel was designed by Texas-based architecture firm BOKA Powell and built by California-based DPR Construction.

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484K-sf industrial development underway in Park 225

PASADENA (Houston Business Journal) – GTIS Partners has acquired a 26-acre tract in the Park 225 commercial business park to develop a 484,000-sf industrial project.

The project at Beltway 8 and SH 225 will include two warehouses, each accommodating one to four tenants.

The 355,000-sf cross-dock building will be 510 ft deep and have 36-ft clear height. It will have parking spots for 280 cars and 67 trailers.

The other building will be a 129,000-sf rear-load warehouse with 32-ft clear height, 180-ft depth, and 102 car and 26 trailer parking spots.

Estimated completion is summer 2024.

Dosch Marshall Real Estate represented GTIS in the land transaction, while Arnett Commercial Properties and Axiom Advisory Group represented the seller, Emerson Electric Co.

Did you know the Texas Real Estate Research Center has employment and unemployment data for states, counties, and metropolitan areas? View monthly and annual data going back as far as 1976. Check out the data for free on our website.

3,100-acre Preston Harbor approved for development on Lake Texoma

DENISON (Dallas Morning News) – A 3,100-acre residential development was approved for the south shore of Lake Texoma. 

The $4 billion Preston Harbor will have more than 7,000 residential units—both single-family homes and multifamily. It will include a hotel, resturant, and marina.

The developer is Craig International, partnered with David Johnson of Horizon Capital Partners and Aimbridge Hospitality. 

Development is expected to start before the end of 2023.

A LOT HAS CHANGED since May 18, 1971, the day Gov. Preston Smith signed legislation creating the Texas Real Estate Research Center and placing it at Texas A&M University. For 52 years, TRERC has helped Texans make the best real estate decisions. The latest research reports and articles can be found online in our research library.

JLL: San Antonio’s Northeast submarket leads the way with elevated construction activity

SAN ANTONIO (JLL) – Local industrial development activity continued to flourish at the start of the year, exceeding a high-water mark of 6.7 million sf under construction for the second consecutive quarter, even with 2.6 million sf of deliveries. 

According to JLL's local 1Q2023 industrial report, a comparable level broke ground in the first quarter, 75 percent of which was concentrated in the Northeast submarket. While the pipeline has been dominated by more sizable buildings averaging 191,409 sf, Eisenhauer Point in the Northeast submarket will bring two new buildings online with footprints below 50,000 sf. 

Total vacancy among buildings smaller than 50,000 sf has historically fallen below the marketwide average, sitting at 5.8 percent as of the first quarter, due to the prevalence of tenants with 20,000 to 50,000 sf footprints. 

Given the demand seen across the city, absorption remained strong in the first quarter, exceeding one million sf. Approximately 86 percent of the total net absorption was captured by buildings delivered within the past three years, as there continues to be an appetite for new supply. 

Although the net occupancy gains were not enough to outpace new deliveries, resulting in a 1.4 percent uptick in vacancy from fourth quarter 2022, there is currently enough demand in the market to fill the available space remaining in recent deliveries and projects currently under construction.

240-acre mixed-use coming to Hill Country

FREDERICKSBURG (San Antonio Express-News) – Fredericksburg Development Inc. and Heirloom & Co. are spearheading the 240-acre The Village at Friedën about 2.5 miles south of downtown Fredericksburg between US 87 and US 290.

Plans call for more than 500 residences—about 220 single-family homes on about 130 acres in a gated portion; more than 300 apartments, including units for people 55 and older; and 40 cottages near the hotel.

About half of the roughly 80 homesites in the development's first phase have been sold. Construction is underway on another 25 homesites, a community center, pool, and private trail system.

The development will also have The Artisan, a hotel with 108 luxury suites, a 12,000-sf wellness center, more than 30,000 sf of space for private events, a farm-to-table restaurant, rooftop lounge, bakery and butchery, lagoon pool with a lazy river and swim-up bar, and a wine and food center. For-sale, hotel-serviced cottages will be built to complement the hotel. 

About 85,000 sf will be devoted to shops and restaurants.

The single-family homes will range from the $700,000s to around $3 million.

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