Perry Homes Midtown Developments Article

[KinkaidAlum]

Midtown- Back off with your constant insults. You rarely add anything substantive to this board but pipe in with things like "print it" and "back to school." It's really getting old.

As for why the current housing trends should concern us.

There are 10% more new homes sitting vacant right now than there were this time last year according to MetroStudy. This is largely a result of a massive influx of spec home building by large developers hoping to cash in on the record low interest rates creating a much wider pool of first time buyers. There appears to be little slow down on this phenomenon.

That's a deadly combo considering that numerous reports have indicated that many of these first time buyers really cannot afford the houses they are being approved for. If there is a slight downtown in Houston's economy, we will be headed towards foreclosure rates that will rival the 80s oil bust.

Additionally, the surge in low end buyers (over 70% of the new homes constructed in Houston in 2004 were priced under $200,000 and 43% under $150,000) has created a piss-poor rental market with vacancy rates in the mid 80% range.

Both of these conditions make me wary.

[kzseattle]

Midtown- Back off with your constant insults. You rarely add anything substantive to this board but pipe in with things like "print it" and "back to school." It's really getting old.

As for why the current housing trends should concern us.

There are 10% more new homes sitting vacant right now than there were this time last year according to MetroStudy. This is largely a result of a massive influx of spec home building by large developers hoping to cash in on the record low interest rates creating a much wider pool of first time buyers. There appears to be little slow down on this phenomenon.

That's a deadly combo considering that numerous reports have indicated that many of these first time buyers really cannot afford the houses they are being approved for. If there is a slight downtown in Houston's economy, we will be headed towards foreclosure rates that will rival the 80s oil bust.

Additionally, the surge in low end buyers (over 70% of the new homes constructed in Houston in 2004 were priced under $200,000 and 43% under $150,000) has created a piss-poor rental market with vacancy rates in the mid 80% range.

Both of these conditions make me wary.

<{POST_SNAPBACK}>

I would imagine that almost every major city is facing the same scenario. So, this isnt specific to Houston. The housing/construction boom is nation-wide. Indeed, I would think that Houston is relatively safer since the prices havent balooned as much as in other places as LA, Seattle, Virgina, NJ etc. I would equate current real estate boom with dot-com bubble. However, if there is real estate crash, one would hope that low prices in Houston should cushion the blow to some extent.

As for the rental market, I always wonder why they keep building more apartments. Maybe, the builders are hoping the housing market would crash sometime in the future? Maybe they know better? However, isnt it better to own than to rent? Also, if rental market doesnt recover, I would expect some of the underperforming apartment complexes (read slummy) being torn down and replaced with houses or some other commercial properties. Some units could be converted to condos. The rundown apartment complexes have often been blamed for conditions in areas like Sharpstown, Alief, Gunspoint etc.

[jm1fd]

In my earlier post, I tried to argue simply against the theory that cost of housing is low because of bad reputation of the city. I believe that is not true since it is essentially a question of supply and demand. What we have is excess supply of land and not low demand.

<{POST_SNAPBACK}>

I think that our opressive property tax structure also plays a sizeable role in keeping housing prices down....I know you said cost of housing, but I think you mean not the TCO of housing, but rather, prices of the actual real estate....no?

[jm1fd]

As for the rental market, I always wonder why they keep building more apartments. Maybe, the builders are hoping the housing market would crash sometime in the future? Maybe they know better?

<{POST_SNAPBACK}>

I suspect they're building right now the same reason everybody else is....money is cheaper. They'll be in a great position with the rental market heats back up....bringing in big rents + cheap financing = more profits. So what if they are pinched in the near term? It would be worse if they were pinched with a big fat interest rate on the note.

[kzseattle]

I think that our opressive property tax structure also plays a sizeable role in keeping housing prices down....I know you said cost of housing, but I think you mean not the TCO of housing, but rather, prices of the actual real estate....no?

<{POST_SNAPBACK}>

Yes, I meant the actual price of real estate. Infact, I mentioned in my cost that high tax rate actually makes up a lot of the difference between TCO of housing in Houston vs other expensive cities.

Indeed, I think the tax rate is high because the actual price of real estate is low. For example, the price of real estate is roughly 2.5 times higher in Seattle but the tax rate is roughly that much lower. So, Seattle gets the same amount of money for a house with low rate that Houston gets with high tax rate.

[firstngoal]

The proliferation of bad quality buildings has helped give this city the terrible reputaion it has. I love this city, but it has MAJOR problems. One of the worst is the lack of controls put on developers. Now, we have many of the same developers that build all over the state and country. The problem here is that they can do whatever they damn well please. And probably the worst enemy of neighborhoods is the developer. So many of them just want to make quick money. They could care less about the history of the neighborhood or its fabric. They care about putting the thing up and making a killing from it. It's always going to be a losing battle with these guys because most of them just don't care.

Now that many of the neighborhoods are infiltrated with Perry junk and the sorts, it's absolutely imperative that the few precious structures left be saved. Without zoning or strong neighborhood guidelines it is up to the consumer to voice his/her opinion. Money speaks louder than words. Just don't buy a Perry!

Perry and countless other developers have helped give Houston the reputation of a city without a soul. For a city so diverse in so many other ways this title is disgraceful. This city has been all about business too long. The ill effects have shown, now is time to do something about it.

<{POST_SNAPBACK}>

Ok, I guess I believe you in your earlier post when you say that you once lived in a Perry Home - but with such strong emotions in this entry - it really makes me wonder why you bought a Perry to begin with... when did you have your epiphany?

I live in a Perry Home - and I completely agree with what was mentioned earlier by MidtownCoog. I could not afford some of the other options out there, yet I've been very happy with my purchase. I have a great floorplan, garage off an alley, front door facing the street. My elevations are faced with brick, my energy bills are reasonable, I have wonderful neighbors, and I love the area I am in. My home rose on what was once a surface parking lot (yeah, how nice is that?)... and Perry actually planted street trees, in tandem with Trees for Houston, around the entire periphery of the development. Any issues I've had were quickly addressed by Perry - and at the end of the day - I'm happy with my purchase. I'm actively involved in my surrounding community association - and participate in neighborhood clean-ups all the time.

Many of you can rant and complain about Perry Homes (or Houston) - but I really wonder how attuned some of these voices are. My best friend (from Boston) comes to Houston all the time - and loves it (just like I love Boston). She is very envious that I have a nice place to call my own. She actually makes more than me - and lives in a decripit place that needs a lot of TLC. It costs over half a million dollars, folks - and she is 30 minutes from downtown Boston.... and she is trapped. She can't afford to move up - and is considering getting roommates to help with the payments - and improvements.

Its all a matter of perspective... Perry is simply responding to the market. They put out a product I bought into (and I take offense to people "feeling sorry for me" - how rude and condescending!) and I am happy with. Whether we like it or not, that is life in America (and Houston) in the 21st century. And if you think Perry gives Houston a bad image, you are way off track. Its our billboard-lined freeways and poor attention to cleanliness that really sets us back. My Perry home isn't the first thing that a visitor to Houston will see - or will ever see. Think about it.

[midtown_resident]

If anyone is insulted by facts, it's time to get a grip.

The "brain drain" and "deadly combos" are for the drama queens on the Web, and Sun Belt economics are a fact.

Show me an article that backs up any of your "ass"umptions and I may cut you some slack.

Otherwise, you are commenting 1,500 miles from reality, and that's hard to do.

And don't let your John Kerry rage change your perceptoin of Perry Homes.  Not long ago, Perry was getting all the credit.  One article on some loser who can't deal effectively with her warranty, and now Perry is the root of all evil in the world.

Think long, and think hard.

<{POST_SNAPBACK}>

"One article on some loser who can't deal effectively with her warranty..." is a bit rough. I don't think anyone is calling Perry the root of all evil - but certainly there are arguments that they are not contributing to the spirit of an urban community in midtown.

My primary complaint is that these gated communities that they build around the baldwin park area really isolates the community from it's surroundings. I also don't like the homogenized nature with which they build. These are issues that bug me and I gripe about them. But I don't think Perry is the root of all evil.

I do fault the Midtown Management District more than anyone in this whole deal - I am one who believes that they should be a bit more heavy handed in how the retion is developed...but alas, that's not gonna happen!

[MidtownCoog]

Perry was the only one brave enough to build in Midtown! Do you remeber EB park in 1993? I do, and it was a crack infested heck hole. Perry helped change that, and other builders came along after they saw Perry's success and felt it was "safe".

And the warranty issue may sound rough, but true. Not every little old lady can deal with a warranty. We should check the Houston Press letters this week, becuase Perry owners should be coming out in droves.

But I doubt you'll even see one letter.

And those gates help keep Mr. Nguyen the heroin lover at bay.

Chareles LeBlanc and the MMD is less to blame than the city we live in.

That, my fellow posters, is the root of all our problems. Every Tom, Dick and Michael Berry sitting in City Hall is also a real estate agent.

Go figure.

[KinkaidAlum]

The fact that you give Perry Homes credit is all I need to know.

Perry Homes is a suburban builder. Has been for over 35 years. Even today, with only 73 units located inside the Loop out of an available 667 in the Metro area, the company's profits come from suburban sprawl. Maybe that's why there are currently 1,660 planned units outside the beltway and ZERO inside the Loop according to the company's own website? Maybe that's why he builds gated enclaves and looming street facing garages in close-in neighborhoods? Or, maybe he just does that to market them to people like yourself?

Of course, you tried the Midtown thing but have since retreated to the suburbs.

[qol2005]

Consider this:

Regardless if you pay $200k or $400 for your house it is still built by the same illegal labor. The cost of living and bang for buck can be tied to this factor in many situations. States with a larger union membership and fewer workers willing to work for less tend to have higher costs of living.

As a anti-big government capitalist I am still on the fense about Houston and Zoning.

Its funning how Dallas is conservative and Texan, yet somehow zoning has not crushed individual and biz concerns. I'm a native Houstonian, so I am pre-disposed to believe that the best thing out of Dallas is I45. But I have to hand it to them. They have a great light rail system, their freeway traffic is actually declining because of the rail system. Homes and communities are being located near rail stops and look to be built to last. Something has got to give in this city!

As far as Perry Homes is concerned, I do prefer them to the crack houses that once occupied the land. It cracks me up that all the lefties moan about crime, but are the first to preserve some "former historic, now crack house" shotgun shack.

And before you label the Midtown homes as horrific, you must see Perry's new construction in the Heights. It gets a C-, as while its great that they are trying to fit in with the typical Heights home, the end results mis the point.

[hstnrealtor]

I don't know why all the screaming about Perry. KBhomes, Pride, DRHorton, Centex, the list goes on and on are all supremely inferior builders to Perry. Overall Perry builds a solid, reliable product and has a very loyal customer base. I have customers who ask specifically for Perry and Weekly because they like the look. Difficult as it is to understand, many people don't require sound architecture in a home, they want a place their family can live comfortably. They want a wall big enough for the big screen and they want a fireplace in Houston. They want a 4Bdrm/gameroom/study/master down for $250K. That's what they buy, and that's what gets built. The Press is never subtle with their political action statements and neither is Mr. Perry. Let's at least call this what it is - politics - not real estate or architecture. I remember when Frank Liu was going door to door in West U paying cash for bungalows to tear down and build 3000sq.ft. red brick boxes as they were referred to. He was the scourge of Houston, he couldn't build them fast enough, and now people are writing here about the 'quality' of Lovett homes. Time cures all. Perry supports Republicans, The Press doesn't. Politics.

[KinkaidAlum]

You wonder why people dislike Perry Homes?

Take a look at the Perry development on the corner of Peden and Hazard just south of West Gray.

That block of Hazard St. is mostly filled with high quality single family homes, including several newer custom homes mixed in with restored bungalows. Yet, the end of the block is filled with 6 or so Perry townhomes that are built completely AWAY from the street. While the rest of the block faces forward on Hazard and people walk their dogs and take pride in their front gardens, the Perry homes erected a huge, cheaply built, wooden fence that fronts Hazard St. The cheap siding material also fronts Hazard as the brick was reserved for the interior courtyard (parking lot behind security gates) facing Peden St.

Now, to be fair, there are other 3 story townhomes on that block, but none of the other developments built security gated driveways and erected a hideous fence to block out the neighborhood. That is why many people loathe Perry Homes.

[MidtownCoog]

give it a rest, drama queen!

come back to H-town and fight some real battles

otherwise, feel free to preach from your Yankee roost.

[KinkaidAlum]

I don't date married guys.

PRINT IT