Houston (AP) Houston (AP): The real estate market is in a bubble and real estate developers are in high demand, but new developments in the city’s southwest are drawing big dollars from investors.
Houston is the epicenter of Houston-area development and development is in high gear, with developers building homes and condominiums and restaurants.
But developers are also finding that there are lots of places to park.
Housing prices in Houston have been climbing, with a median home price of $1.1 million in May.
That’s up from a median of $724,000 a year ago, according to Zillow.
Developer Brian O’Malley has seen a sharp jump in interest from developers in the last few years, and he said he’s seeing an uptick in demand.
“The city is a hotbed for people that want to invest, and it’s been really a great fit,” he said.
“We’re seeing people come here, and we have a great community here that’s really excited about it.”
O’Malley said developers have been making their first big splash in the Houston area with projects in areas like Pearland, where they’ve bought properties in the past year or two.
O’Brien said he hopes to build a hotel, condominium and office tower for a client in Pearland.
His company is also building apartments and condos on the west side of Houston and will open the first two apartments next year.
O’Bannon has seen an uptick of interest from buyers for his new project in Katy.
His company has bought five apartments on the site of a former warehouse.
“I think the real estate here is great, and people want to move here,” he told The Associated Press.
“There’s not a whole lot of options in the Katy area.”
Houston real estate, like much of Texas, has been growing in the first half of the year.
That growth has come amid an ongoing recession and is fueling a surge in demand for homes and condos.
The median price of a home in Houston is $1,066,500, according a report by Zillower, with the median asking price for a home hovering around $1 million.
It is up about 30 percent from the year before, according the report.
The number of units in Houston has jumped by more than 1,000 from April through June to 5,851, according that report.