Expansion of two master planned communities will bring nearly 600 homes to Houston’s suburbs
September 7, 2024
Separate developers are starting new phases of residential developments, adding almost 600 homes in Hockley and Mont Belvieu.
Jubilee, the health- and wellness-focused community by Houston-based Johnson Development about 35 miles northwest of downtown in Hockley, will deliver nearly 300 lots for the new Elation neighborhood this fall. Sales in the 1,622-acre community began this year with the 491-lot Radiance neighborhood.
In Mont Belvieu, McGrath Real Estate Partners has begun work on phase two of Riceland, a 1,500-acre community about 35 miles northeast of downtown, near Interstate 10 and the Grand Parkway.Trez Capital, based in Vancouver, Canada, continued its investment in the project with $40 million in financing for Riceland Phase II, comprising 311 lots on 138 acres, the Lakehouse Recreation Center and the 2-acre Sweetgum Park. The initial phase of 417 lots on 144 acres began home sales in February.
TOP SELLERS: These Houston suburbs are home to some of the top-selling master-planned communities in the U.S.
“Builders across the Houston market, and I think in most of the major housing markets, are still heavily focused on tying down land and lot acquisitions to fill their pipeline," said Lawrence Dean, founder and CEO of Community Builders Advisory Services.
Builders have had an advantage over the resale market because they can buy down mortgage rates to help buyers deal with higher lending costs, something that's not as easy for an individual seller to do, Dean said. Plus, many homeowners with low mortgages are staying put because it would be too expensive to get a new loan, making new homes a more readily available option.
Current U.S. homeowners with a mortgage are paying an average 3.93% rate on those loans, according to real estate data firm CoreLogic. Buyers can expect to pay an average rate of 6.35% for a 30-year mortgage, according to Freddie Mac.
In Jubilee's new phase, Chesmar Homes, Coventry Homes, David Weekley Homes, Highland Homes, Newmark Homes, Perry Homes, Tri Pointe Homes and Westin Homes will offer houses on lots of 40 to 60 feet starting at about $320,000.
Jubilee, which subscribes to the International Well Building Institute's Well residential program for healthy homes, will have 4,900 homes upon completion with features such as water and air filtration systems and lighting systems designed to foster healthy sleep cycles. Amenities throughout are also aimed at healthier lifestyles.
In Riceland, which will celebrate its grand opening on Sept. 21, there are 85 homes under construction. Homes sell from the low $300,000s to the upper $700,000, according to the developer. The Riceland community, when complete in 15 to 20 years, will have about 4,500 homes, said Barrett Kirk, chief investment officer of Houston-based McGrath Real Estate Partners.
The Riceland builders consist of Chesmar Homes, David Weekley Homes, Highland Homes and Perry Homes. The second phase will have homes backing up to the city of Mont Belvieu's Eagle Pointe Golf Course, the Lakehouse Recreation Center and Sweetgum Park.