Affordable Houston Housing

[Subdude]

Houston housing is still affordable

Median-income families priced out of major cities

Of 11 studied big-city markets, only Atlanta, Philadelpia, and Houston remain affordable, according to a Fannie Mae report called Homeownership Affordability in Urban America: Past and Future. Beginning this year, in many U.S. cities, first-time homebuyers earning the median income will not be able to qualify for the median-priced home, even with a ten percent down payment. By 2007, median income homebuyers with even a twenty percent down payment will not qualify for a mortgage on a median home. Homes in Boston, San Francisco, New York, and Los Angeles are already priced beyond the reach of teachers, fire fighters, nurses, and police. In these cities first-time home buyers need to make twice the area

[HeightsGuy]

I don't know about other cities, but IMO Houston is really two cities when it comes to residential real estate. No one will argue that there are affordable homes here in the area if you don't mind 1+ hour commutes to and from work. But to say Houston is affordable is a little misleading. Show me a house inside the city limits less than $200,000, and I'll show you a house with far more questions than answers.

Houston always gets on these reports because it's so darn big and spread out, and I'll venture a guess that Atlanta is the same way. I don't know anything about Philly.

[MidtownCoog]

Show me a house inside the city limits less than $200,000, and I'll show you a house with far more questions than answers.

The poster "jtmbin" sure thinks there are plenty of them. We had a similar conversation on the "18 Lanes in His Rear View Mirror Thread". $300K is more like it, and even some of those are "livable teardowns".

Maybe we can pick up that topic here since it makes more sense.

www.har.com

[bachanon]

one of the reasons that moderate income housing becomes so difficult in an urban environment is because investors require a quick turn around on their money. there are situations around the country where architects, urban planners and affordable housing fans are finding investors willing to have longer investment periods with lower rates of return. these things are rare but it could be the future for urban affordable housing.

[The Great Hizzy!]

They pay a higher amount for the land that the build new dwellings on (or the land in which older structres are present) and, as Bachanon stated, the developers (rightly) want a fast turn around on their money.

[pineda]

NOWHERE TO HIDE: DENIED BUILDERS

[Guest danax]

This is interesting to me, how the cities are all becoming places where only the upper income strata can live. I think it's due to the obvious: population increases cause traffic increases which cause competion for short commute slots. So have these cities become cleaner, safer, more urbane, more beautiful places as the "icky poor people" are driven out? Do crime statistics support this? Perhaps. I hear Harlem is enjoying a "comeback". Is this a good thing then? Rent surely increases too so where do these people go? I have a friend in the Bay Area near SF who says there are more worker Mexicans than ever and they live 10 to a house. Will there be mandated affordable housing projects in all close-in areas to make it "fair"? Or do they just end up in the old, abandoned suburbs? Is this trend likely to reverse? What would cause upper income people to leave close-in areas once they've "taken over"? The population isn't likely to decrease. Although while the population of higher income, more educated people is probably stable or decreasing due to having fewer children, the poorer people are having kids like crazy. Is this just a Baby-Boomer driven phenomenon that will peter out and cause falling prices once that generation has all died off? There must be a futurist type study or two out there analyzing this. Since we as a city are supposedly lagging behind the other cities regarding this gentrification trend, does this offer us the advantage of being able to analyze how other cities adjust to this and to be able to glean the best ideas and avoid the mistakes? Just some streaming thoughts to throw out there.

[20sGirl]

Don't forget to factor in the price of owning a car to the cost of living in Houston. Insurance, gas, inspection, registration...

The bad thing about builders is that they keep building the same old cheap-quality crap that all look alike. When you have no choice, you have to take what's out there. We need a city-wide survey of random people (similar to www.whatmichiganwants.com) to show the builders that people really do want walkable neighborhoods and scenic streetscapes. Maybe if the suburban areas weren't so boring and cookie-cutter, everyone wouldn't be clamoring for the inner-city residences.

If you look at other cities that are considered tourist destinations- places where people actually pay to go- you'll see that they look nothing like the "planned communities" the builders are churning out. Chances are, they are cities and towns built before WW2 with a traditional neighborhood feel. Who wants to sit at a coffee shop overlooking a barren parking lot? It's really no surprise that "upwardly mobile" folks are choosing to move back to the city. They've all seen the end results of builders' equivalent to Walmart housing and they've chosen to reject it.

[ninjacop]

I don't know about other cities, but IMO Houston is really two cities when it comes to residential real estate. No one will argue that there are affordable homes here in the area if you don't mind 1+ hour commutes to and from work. But to say Houston is affordable is a little misleading. Show me a house inside the city limits less than $200,000, and I'll show you a house with far more questions than answers.

Houston always gets on these reports because it's so darn big and spread out, and I'll venture a guess that Atlanta is the same way. I don't know anything about Philly.

<{POST_SNAPBACK}>

NEW HOMES BEHIND MINUTE MAID PARK

150's to mid 200's.

[HeightsGuy]

HAHA, good one Ninjacop. I used to live in that area back in the early 90's, and that area is a perfect example of development with more questions than answers. A developer buying land on the cheap to build walled-compound townhomes does not a residential community make.

Mind you, I am not arguing the fact that they are going in, they are probably a good deal for DINK's like myself, but this post is regarding residential real estate, which in my mind equals housing for families as well as DINK's, and I don't think the area behind Minute Maid Park is going to be very kid friendly for a long time to come.

[ninjacop]

HAHA, good one Ninjacop. I used to live in that area back in the early 90's, and that area is a perfect example of development with more questions than answers. A developer buying land on the cheap to build walled-compound townhomes does not a residential community make.

Mind you, I am not arguing the fact that they are going in, they are probably a good deal for DINK's like myself, but this post is regarding residential real estate, which in my mind equals housing for families as well as DINK's, and I don't think the area behind Minute Maid Park is going to be very kid friendly for a long time to come.

<{POST_SNAPBACK}>

not talking about the ones next to alexan lofts..i'm talking about the patio homes next to bayou on clinton drive.

look further..and you;ll find eastwood village.past that idlewood..known to be new montrose.

[ricco67]

IDLEWOOD as the new montrose?

Puh-leeze.

It's a very suburban-like community which is isolated on all sides by either roads (one of which is closed off) and a Bayou.

Don't get me wrong, it's a nice area, but hardly the affordable oasis that you think it is.

I haven't looked up the prices lately, but a number of those homes are beyond the $200k by now.

Ricco

[jm1fd]

Idylwood (note the spelling), if anything, will be the next teardown McMansion metropolis (see Garden Oaks). The deed restrictions prevent it being mixed use like Montrose.

Cheapest house right now in Idylwood is $135k, most expensive is $350k.

[Guest danax]

look further..and you;ll find eastwood village.past that idlewood..known to be new montrose.

Keep going east a few blocks and you hit Forest Hill, Mason Park Addition and Pecan Park (www.ppca.50megs.com) all between 80-160K. A few have "more questions than answers" and the surrounding environs still resemble a funky fiesta but it is changing for the better relatively quickly. Idylwood (1930s-40s) and Eastwood (1910s-20s) are the nicest homes but the others are decent structures and on the edge of being old enough to be considered historic, if not elegant. Idylwood is more yuppies, if that's what you mean by the "new montrose". Pecan Park is more artsy/funky. There's maybe the 2nd or 3rd best park in Houston right in the middle of this area too, Mason Park, and not too many people probably know about it. The East End lives in relative obscurity to most Houstonians so the comment that nothing exists under 300K worth buying inside the loop doesn't surprise me. Yes, I'm plugging my neighborhood again but this one was in defense.

[HeightsGuy]

OK, I fully agree with you that the area is pretty cool. Like I said, I used to live in the area and know a lot about it. I for one think pound-for-pound the area is as safe as many other places in Houston.

But, I think you will admit that it takes an adventurous spirit to choose that area for your home. The "average" person looking for a home in that price range will never think of Eastwood. If I had an employee transferring here and looking for a home in that price range, my first thought would not be to tell them to look into the Eastwood area, does anyone disagree with me on that? It goes back to more questions than answers.

To clarify my original argument over the article...... I think the crux of the article is saying "move to Houston, it's a mecca of inexpensive housing" when in reality it should say "move to the Houston "area", it's a mecca of inexpensive housing as long as you don't mind long commutes".

[ricco67]

HG,

I totally agree with the "..if you don't mind long commutes" statement. There are plentyof affordable housing options within the beltway as well as the loop. It's just a matter of finding those hidden communities.

As far as crime being rampant compared to another, I always took that with a serious grain of salt.

Ricco

[Guest danax]

OK, I fully agree with you that the area is pretty cool. Like I said, I used to live in the area and know a lot about it. I for one think pound-for-pound the area is as safe as many other places in Houston.

But, I think you will admit that it takes an adventurous spirit to choose that area for your home. The "average" person looking for a home in that price range will never think of Eastwood. If I had an employee transferring here and looking for a home in that price range, my first thought would not be to tell them to look into the Eastwood area, does anyone disagree with me on that? It goes back to more questions than answers.

To clarify my original argument over the article...... I think the crux of the article is saying "move to Houston, it's a mecca of inexpensive housing" when in reality it should say "move to the Houston "area", it's a mecca of inexpensive housing as long as you don't mind long commutes".

<{POST_SNAPBACK}>

Yes, I do understand what you're saying. When "average" people think of housing options I suppose they think; standard, fairly new house that needs no work and standard neighborhood meaning mostly white population. These qualifying factors eliminate most of the "questions". Most people don't want "adventure" when it comes to where they live and what they live in. I have no problem that, I understand. I am more adventurous. My home had plenty of questions but its a charming Victorian that I snapped up cheap because the "average" person scoffed at it, and it's turned out to have been more satisfying to me than I had originally imagined. The people that bought the Heights were adventurous a few years back too. I am white so buying here in the East End would also be considered adventurous to the average person (does that make me a cracker floating in a bowl of menudo?, hehe). But it's no big deal. I have had no problems and feel very safe here. I know two single Nasa engineers who live here in Pecan Park, one just bought her second home here and the other one is transforming his house into a restored art-deco delight. I know a world-class musician that lives here, although no one has ever heard of him, and a good artist too. So, sometimes the adventure turns out to be less than originally feared, but one has a hard time knowing that driving through a neighborhood. Its the perception of adventure that keeps prices low. The demographics in most neighborhoods are always, either subtlely or not so subtlely, in flux, so catching an improving wave while it's still forming seems wise to me, but most people would rather wait until the wave is fully formed before standing up and attempting to hang ten. So, I agree with you...finding areas of affordable housing in any big city in America today means being adventurous and, like the virgin woodlands or endless prairies of centuries ago, their days are numbered.

[dbigtex56]

Excellent post, danax.

I lived in a neighborhood of early to mid 19th century buildings (some quite elegant) in Rochester, some 25 years ago. People thought I was crazy. Much of the neighborhood had been leveled by 'urban renewal', some of the houses were burned out and abandoned, and there had been a terrible riot there in the 60's. White people were very much a minority. Yet, there was a feeling of optimism and community that was infectious. It changed from edgy to trendy to desirable in a few short years. Corn Hill is some high-priced real estate these days.

Same thing here in Houston. When I moved to the Montrose in '81, radio DJs made sarcastic jokes about "the Crime-Free Montrose", and 'respectable' people avoided the place like the plague (how I miss those days!) In the mid 80s, houses were being sold at HUD auction. But perceptions change. Oddly enough I think Montrose is a more dangerous place now than before it attained its trendy status.

Eventually I'll be priced out of the neighborhood - and the East Side seems like the best alternative for me.

[HeightsGuy]

Danax,

Great post. The only thing I would clarify is that, at least when I think "average" for the sake of this discussion, race has no bearing on the equation. To me it is strictly economic. If someone with no knowledge of Houston told me they were looking for housing in the $150-200k range, I would not recommend a transitional neighborhood regardless of race.

In the same vein, I think buying into your neighborhood is "adventurous" whatever your race happens to be.

For full disclosure purposes, I took a much safer, but still adventurous, bet by buying post war construction in Shady Acres.

[ToolMan]

I was at Franklin's Custome place last week and noticed a lot of Perry homes going up starting at the $120's (Polk & Dowling St.)

[MidtownCoog]

Do you get Hazardous Duty pay if you buy a Perry near Franklins?

It's SOOOOO Mad Max over there.

[jm1fd]

I was at Franklin's Custome place last week and noticed a lot of Perry homes going up starting at the $120's (Polk & Dowling St.)

<{POST_SNAPBACK}>

There was one for like $129. It sold already. The rest are $140+

[Guest danax]

Danax,

Great post. The only thing I would clarify is that, at least when I think "average" for the sake of this discussion, race has no bearing on the equation. To me it is strictly economic. If someone with no knowledge of Houston told me they were looking for housing in the $150-200k range, I would not recommend a transitional neighborhood regardless of race.

In the same vein, I think buying into your neighborhood is "adventurous" whatever your race happens to be.

For full disclosure purposes, I took a much safer, but still adventurous, bet by buying post war construction in Shady Acres.

<{POST_SNAPBACK}>

Heights Guy, you've mildly stimulated my defenses again, I guess it's because the East End is the Rodney Dangerfield of Houston and so I feel it needs defending, not out of pride so much as what I see as ignorance or misinformation. Don't most people really mean, when they say "inside the loop", inside the West half of the loop? The East gets no respect, ya know what I mean ? (eyes bulging, tie straightened).

Ok, so economically you took a safer bet and bought Shady Acres. And, I'm sure the property values have gone up fairly nicely in the past few years too. My house has gone up about 40-50% since I bought it less than 3 years ago, and it is still worth only about 95K. I am familiar with the area and it's a good geographical spot, in terms of proximity, but it's mostly in the flood plain, isn't it? Wasn't that ground zero for Allison? That's an adventure that I would not want. To restore my house, as I am, picking out lead paint from my door with dental tools, a pure labor of love, only to wonder if the next tropical storm will destroy it all? I'm really not trying to put down your neighborhood but I just want to express my bafflement at how people in Houston buy in flood plains and values aren't affected, like over near Braeswood. What a mess. For the record, the East End was dry, as far as I know, my neighborhood and the surrounding ones at least, except a few houses along Brays Bayou in Idylwood. Also, Shady Acres seems to be experiencing Deconstruction or Fragmentation, ie, houses are being destroyed for new townhouses. Good for values but it gives the neighborhood a strange, broken up feel. That's a neighborhood in true transition, and it will probably look good, but different, in a few years. Over here, it's house after house still, a suburb within the city. That all might change too, of course, but some of the Civic Clubs, Eastwood in particular, are trying to keep some kind of general single family feel, for example they had meetings with Perry Homes and apparently were influential in their decision to not only put a lot of single family units in their upcoming 300 unit "Enclave" project off of Lawndale but also to build them in Craftsman/Prairie style, so as to fit the surroundings. Don't underestimate these people out here. They stopped the 225 fwy consturction dead in it's tracks back in the 70s, and thanks to their grass-roots protesting, this area is surrounded by freeways, but not dissected by any, and the 225 is the shortest fwy in town, ending abruptly like a amputee's stump just inside the East Loop.

As for " 150-200K.... transitional housing", that kind of money over here gets you into Eastwood or Idylwood, not transitional in my book, but rock solid. My neighborhood is transitional, at 80-100K.

I don't want to make it sound like Shangri-La over here. There are some negatives, like the Ship Channel, a potential terrorist target, as Montrose Neighborhood Cafe so delicately pointed out. It's miles away but I guess I'd be toast. As for the pollution from the refineries nearest to this area; I am concerned about that and have looked at the plume animations that are available online that show an hour by hour display of where the smokestack plumes eventually drift to and it looks allright here. Since they are almost straight east, the winds in summer carry them mostly to the north, and in winter, the northwestern winds push it south of us, so it's not any worse than the rest of the inner loop probably, which gets most of the industrial pollution from the southern end of the channel in Galveston Co. The lady that lived in my house died in 1983 at 91 years old. Also, there are some really dumpy neighborhoods over here, albeit with some nice old homes, but a little too third world still for me (Magnolia Park, Central Park).

Sorry for the long post.

[rps324]

Well if the Southeast area is NOT it, somebody better tell me, because as a Realtor that is where I am selling houses to people who have been priced out of Heights, etc. with amazing regularity!

I agree with those who remember Montrose sarcastically referred to as "the crime free Montrose" and Heights as a sketchy transitional area. Pretty pricey territory now. I do not have a crystal ball, but, barring a huge economic downturn, I think we will see similiar gentrification Southeast, or rather we will see the existing gentrification continue and intensify.

I certainly would recommend Eastwood, Idylwood, and one other close in Southeast area that is very affordable, Glenbrook Valley.

Keep your eye on Glenbrook, the whole atomic-ranch, mid-century modern trend is growing like mad! There are fantastic houses down there, and it is still deed-restricted. There are the crappy apartments nearby, but then again where in urban Houston do you NOT have the block-by-block adventure? At least it is still restricted once you get into it. Check out the photo gallery at www.glenbrookvalley.com It is only one exit outside the loop and I believe at least as close or probably closer to downtown than areas like Garden Oaks.

[Guest danax]

Well if the Southeast area is NOT it, somebody better tell me, because as a Realtor that is where I am selling houses to people who have been priced out of Heights, etc. with amazing regularity!

I agree with those who remember Montrose sarcastically referred to as "the crime free Montrose" and Heights as a sketchy transitional area.  Pretty pricey territory now.  I do not have a crystal ball, but, barring a huge economic downturn, I think we will see similiar gentrification Southeast, or rather we will see the existing gentrification continue and intensify.

I certainly would recommend Eastwood, Idylwood, and one other close in Southeast area that is very affordable, Glenbrook Valley. 

Keep your eye on Glenbrook, the whole atomic-ranch, mid-century modern trend is growing like mad!  There are fantastic houses down there, and it is still deed-restricted.  There are the crappy apartments nearby, but then again where in urban Houston do you NOT have the block-by-block adventure?  At least it is still restricted once you get into it.  Check out the photo gallery at www.glenbrookvalley.com    It is only one exit outside the loop and I believe at least as close or probably closer to downtown than areas like Garden Oaks.

<{POST_SNAPBACK}>

There are some quality, large homes in Glenbrook. And, like you say, the style is starting to gain in appreciation too. A lot of the hardware and lighting reproduction companies that I have catalogs from for my 95 year old house are starting to feature the "mid-century"/"space age" stuff and the styling is wild, for example Rejuvenation catalog. People can have a lot of fun restoring one of those homes. It's just a matter of time until that place gets hot.

[ssullivan]

Where exactly is Glenbrook?

[jm1fd]

It is only one exit outside the loop and I believe at least as close or probably closer to downtown than areas like Garden Oaks.

<{POST_SNAPBACK}>

It may be closer distance wise than Garden Oaks/Oak Forest, but you can get to GO quicker at rush hour. The Allen Parkway/Shepherd/43rd are almost always flowing smoothly at rush hour....more than can be said for the Gulf Freeway.

[rps324]

Where exactly is Glenbrook?

<{POST_SNAPBACK}>

There are alternative routes other than the freeway, but it is the easiest to explain. 45 exit Broadway, turn right, go to the light at Santa Elena, it is left and right side.

There is a map on the website also. Expect to see more things in print on this neighborhood in the near future.

[rps324]

It may be closer distance wise than Garden Oaks/Oak Forest, but you can get to GO quicker at rush hour.  The Allen Parkway/Shepherd/43rd are almost always flowing smoothly at rush hour....more than can be said for the Gulf Freeway.

<{POST_SNAPBACK}>

More than can be said for any Houston freeway at rush hour. You wouldn't be a true Houstonian if you didn't figure out at least 2 good non-freeway shortcuts to anywhere you're going...

[HeightsGuy]

I10 west from DT to Shepherd is also a raceway during the afternoon rush hour, though it does start to bog down @ Washington or even TC Jester.