Inner Loop Home Prices – Sticker Shock
Inner Loop Home Prices – Why so High?
Why do these Houston Inner Loop Homes Cost So Much?
January 31, 2014 notes: This is an old post, but the reasoning still stands. Land prices continue to go up, and so do house prices. See my Neighborhood Page on Houston Heights, and recent posts.
I do open houses almost every Sunday. Inner-loopers visit and we chat about the neighborhood, features of the home, etc. Those from the suburbs have to first get over sticker shock, then we cover everything else.
Recent construction by Ansari Homes in Houston Heights
“It costs more than my suburban house and it’s half the size”. $400K+ for new construction? Why?
Answer # 1: Land cost: Location, location, location.
When I had kids in school and little money (Is there a correlation there?) I bought a big house in the suburbs: Inexpensive, and great schools. Now, kids are gone and I want to be close-in. Lots of other people do too. Traffic is horrible out there and we don’t like getting on those freeways.
Is the dirt better inside the loop? Nope, but the amenities, the museums and work locations, and not fighting traffic is better. So, we pay for it.
Townhomes in Houston Heights by Ascent Homes.
Answer #2: If you pay $200K for the land, you don’t put a cheap house on it. Features, amenities, detailed trim work are demanded.
There are suburban builders who produce big, inexpensive homes. Building big bedrooms and game rooms is cheap. Building smaller, more luxurious homes with the latest and greatest amenities is not.
Jeldwin wood windows, multi-piece crown moldings, etc., are expensive. Ornately trimmed porches and balconies don’t count in the square feet of air-conditioned space, but are expensive to build, and demanded by buyers.
So…there you have it: More expensive land + more luxurious home = expensive inner loop home prices = sticker shock.
If you are considering buying an inner loop home, especially in these older neighborhoods, I’m happy to give advice. Call today: 713 868-9008
