Mid rise development on the rise in Houston in 2012

Young pros seek luxury rentals

Jay Blazek Crossley, Jan 11, 12.

Developers expect a big year for mid rise urban development inside loop 610 and the equivalent area to the west which includes the Galleria, according to Culturemap:

Neil Brown, chief development officer at Archstone Apartments, which owns Lofts at the Ballpark, Memorial Heights and Westchase complexes and is currently building a new complex near the Texas Medical Center, told participants at the Baker Botts/Ernst & Young 2012 Real Estate Forecast event last month that there’s a lot of pent-up demand for apartments as construction has lagged in recent years due to the sluggish economy.

He added that young professionals between the ages of 25 to 35 are prime targets in the rental market because they aren’t as enthusiastic about home ownership. They have seen home prices lose their value and don’t want to be tied down in case they have to move for a job. But they are open to the good life.

“It’s almost a nuclear arms race for amenities,” Brown said.

New complexes are offering features like demonstration kitchens in the clubhouse, music rooms, a Click Cafe (where residents can stop in for coffee and meet their neighbors) and places to repair a bicycle. For a San Francisco complex, Brown even suggested a room to store Segways.

“We’re trying to put in a lifestyle that you can’t even find in a house,” he said. “By providing more than they can get in a home, it encourages them to stay in an apartment a little longer.”

The proposal to expand the area that the City of Houston considers “urban” instead of “suburban” out to the beltway or perhaps the entire city limits could allow the market to meet the growing demand for walkable urbanism in a wider area.