I've been over on the Aggieland board in the past few months. Wife and I are looking for houses/land etc. I'm living in a small apartment until we can find an area that we like and commute back to Cypress on the weekends.

Most builders are telling us $256 per sqft and that includes the lot. Lot prices themself are crazy with 1/3 acre lots to 1/2 acre lots at 200K plus. Over in Bryan the price is around $225 per sqft. Resale housing for anything in the last 4 years is about $216. Is it just a shortage in homes that causes this? I've had agents tell me the BCS never bottoms out like Houston/Austin and don't expect a drop. Bridgeland area is about $209 to $229.

I'm guessing trades may be harder to come buy but suppliers shouldn't be an issue. A market bears what a market bears.

meinkee said:

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It is true that BCS has had a remarkable run it the real estate and home building markets. But those who say we never bottom out must have been playing in their sand boxes in 1882-83 when banks were failing and real estate languished. Interest rates were horrible and foreclosures were rampant. We had a small hiccup in the 90's, too. And we are still saying who are these people, where are they coming from, who is paying the salaries that allow purchase of half million dollar homes after their 300k starter. I can't help but hope it goes on forever! That said, I have never forgotten having a house on the market for 2 years. I wish you success in finding a perfect affordable home around here, but you may have to go smaller or commute from Calvert or Bremond. Brenham is unaffordable, too!

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I know I know it's a typo, just being silly

That house is in the Historic District I believe and is selling for 1.9 M !

cypress-ag said:

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That house is in the Historic District I believe and is selling for 1.9 M !

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well c'mon it is almost 800sqft!

Demand > Supply.

Vinewood is correct. Even during the 2008 housing crisis, BCS faired better than most and if you look historically, appreciation has a slight gain or major gain every single year. We also don't tend to build a ton of two stories like Bridgewood.

Your question is way to vague. What kind of house are you looking for? First time buyer, move up, estate home? Your question is like saying restaurants here are too expensive. Are you talking Subway or Christopher's??? For what it's worth the average new home asking price in BCS is $197 p/sf. Prices in general range from $170-$260 p/sf. In MLS new homes only right now there are 381 homes for sale. Only 34 of them are $257 or above p/Sf.

I'm not as familiar with Austin, but I can opine on Houston.

1. Most of the new homes for sale in Houston are in MUDs with much higher taxes than cities that pay for roads and pipes. You pay back some of the difference over time. Actual cities like College Station have more rules, regulations, inspections, permits, and fees that get passed on to the buyer.

2. A lot more illegal labor is available in Houston than CS, so labor is generally cheaper.

3. Economies of scale. There are 500-acre developments all over Houston. You save money by only having one geotechnical report and one drainage report and one title policy and one survey for 500-acres than for 50-acres.

3.5 Gigantic homebuilders in Houston also have crews and trades that are going non-stop. Install plumbing in one house, then move to the one next door and the across the street, and then the 20 others after that. Trades will work for less/hour if you keep them constantly working instead of work a week, then wait around for the next house to be ready for you.

4. Big cities get things done faster, which means less interest the developer is paying on his loan. Hard to keep engineers employed when Houston will pay 20% more and your house costs 20% less. Similar concept to the trades.

5. Specilization - There are 20+ companies that do nothing but new subdivisions and build houses and are very efficient at generating plans and reports. Our lawyers do real estate, and estate planning, and corporate law. Our engineers do new subdivisions and city work and county work and rehab work. Our trades work on new houses, and home renovations, and commercial properties. Easier and cheaper to churn out 30 subdivision sections a year than a sidewalk project, a roadway rehab project, 2 subdivision sections, and a water tower rehabilitation project.

agnerd said:

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I'm not as familiar with Austin, but I can opine on Houston.

1. Most of the new homes for sale in Houston are in MUDs with much higher taxes than cities that pay for roads and pipes. You pay back some of the difference over time. Actual cities like College Station have more rules, regulations, inspections, permits, and fees that get passed on to the buyer.

2. A lot more illegal labor is available in Houston than CS, so labor is generally cheaper.

3. Economies of scale. There are 500-acre developments all over Houston. You save money by only having one geotechnical report and one drainage report and one title policy and one survey for 500-acres than for 50-acres.

3.5 Gigantic homebuilders in Houston also have crews and trades that are going non-stop. Install plumbing in one house, then move to the one next door and the across the street, and then the 20 others after that. Trades will work for less/hour if you keep them constantly working instead of work a week, then wait around for the next house to be ready for you.

4. Big cities get things done faster, which means less interest the developer is paying on his loan. Hard to keep engineers employed when Houston will pay 20% more and your house costs 20% less. Similar concept to the trades.

5. Specilization - There are 20+ companies that do nothing but new subdivisions and build houses and are very efficient at generating plans and reports. Our lawyers do real estate, and estate planning, and corporate law. Our engineers do new subdivisions and city work and county work and rehab work. Our trades work on new houses, and home renovations, and commercial properties. Easier and cheaper to churn out 30 subdivision sections a year than a sidewalk project, a roadway rehab project, 2 subdivision sections, and a water tower rehabilitation project.

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All very good points. Thanks for the reply.

The bottom end is artificially high from new graduates/student housing, thus bumping up all the housing above it. Then you add in the demand from retirees moving to BCS

I'm still a bit confused on how everyone can afford those new houses going for $600K or more. Then add a couple of nicer newer cars and Trucks like Audis or Platinum F150s.

The best answer I can determine is the local economy in addition to the money vortex that is A&M, also has lots of small business owners and other similar self employed folks. I feel like there's quite a few WFH or others who sparingly commute to Houston as needed. Plus having two people in the household working also helps if both are making $70K+, you could see it.

Also, I'd be willing to bet more than 2/3rds of buyers in the last 2yrs either moved here from out of state or moved here to retire. In both instances each had the cash to put down a substantial down payment and low rates greatly mitigated the rise in material costs. Some just flat out paid all cash. You'd also be surprised how much loan you could qualify for - especially when a 30yr fixed was 2.65%

We moved here after Covid. We are in our late 40's/early 50's and are not retired. My husband works for a tech company, but works mainly remotely. We sold our cookie cutter home in Austin that we bought around 2001. We paid 300,000 for it. We sold it for close to 1 million last year and were able to move here and buy a nice, custom home. Most people in our area are either retired from Houston or in a similar situation to us.

agnerd said:

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2. A lot more illegal labor is available in Houston than CS, so labor is generally cheaper.

• Illegal labor is available everywhere, none of us (or at the very least very few of us) are willing to risk our licenses and careers for a few bucks

3.5 Gigantic homebuilders in Houston also have crews and trades that are going non-stop. Install plumbing in one house, then move to the one next door and the across the street, and then the 20 others after that. Trades will work for less/hour if you keep them constantly working instead of work a week, then wait around for the next house to be ready for you.

• All construction crews are going "non stop", in my 30 years of doing this I have never seen a scenario where people will work for less for "non stop" work.

4. Big cities get things done faster, which means less interest the developer is paying on his loan. Hard to keep engineers employed when Houston will pay 20% more and your house costs 20% less. Similar concept to the trades.

• Residential structures in HTX tend to also be built 20% cheaper lol, look at all of the buckled siding up and down every road in HTX, there are way more "corner cutting" techniques in HTX then there are here

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You're right. Plumbing was the wrong trade to mention (along with electrical). Trades that are licensed is not where you save the money with illegal labor. Framing, masonry, and concrete is where you save.

Red Pear BCS Luke said:

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I'm still a bit confused on how everyone can afford those new houses going for $600K or more. Then add a couple of nicer newer cars and Trucks like Audis or Platinum F150s.

The best answer I can determine is the local economy in addition to the money vortex that is A&M, also has lots of small business owners and other similar self employed folks. I feel like there's quite a few WFH or others who sparingly commute to Houston as needed. Plus having two people in the household working also helps if both are making $70K+, you could see it.

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LOL 140K+ a year is not anything anymore, it's so depressing.

meinkee said:

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It is true that BCS has had a remarkable run it the real estate and home building markets. But those who say we never bottom out must have been playing in their sand boxes in 1882-83 when banks were failing and real estate languished. Interest rates were horrible and foreclosures were rampant. We had a small hiccup in the 90's, too. And we are still saying who are these people, where are they coming from, who is paying the salaries that allow purchase of half million dollar homes after their 300k starter. I can't help but hope it goes on forever! That said, I have never forgotten having a house on the market for 2 years. I wish you success in finding a perfect affordable home around here, but you may have to go smaller or commute from Calvert or Bremond. Brenham is unaffordable, too!

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Brenham has become a retiree destination for Houston refugees.

cypress-ag said:

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EliteElectric said:

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cypress-ag said:

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EliteElectric said:

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agnerd said:

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Residential structures in HTX tend to also be built 20% cheaper lol, look at all of the buckled siding up and down every road in HTX, there are way more "corner cutting" techniques in HTX then there are here

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The siding issue is true in some of the starter homes you see along the highways. In Coles Crossing, Rock Creek, Longwood you don't see that. But I would say the quality of homes in BCS seem a lot better from what I've experienced in NW Houston/Tomball area.

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Also a lot of inferior concrete work in HTX. Could be the clay substrate, could be the plants, could be labor could be all three, but as a rule HTX isn't a hotbed of quality.

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I live in a home built in 1985 and it has zero issues with slab, electrical, plumbing...it's a great area and I'd say the same for the entire area around us.

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1985 was 37 years ago, things have changed drastically

woodiewood1 said:

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agnerd said:

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You're right. Plumbing was the wrong trade to mention (along with electrical). Trades that are licensed is not where you save the money with illegal labor. Framing, masonry, and concrete is where you save.

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i havent seen iillegals in the trades also but often see it in the construction and landscaping sub crews.

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I didn't think it mattered anymore. I mean, like, they vote, get driver's licenses, Medicaid, and will practically sue you (or the media roast you) for using the word "illegal". Houston is a sanctuary. Think Plum Grove Sanctuary. Where else do you think the 2.78 million "migrants" that crossed this year, are working?

Allot of it in College Station also has to do with the schools as well. A high percentage of buyers want to be in the College Station school zones be it for their kids or for resale purposes. If you look at the footprint of College Station ISD it is much smaller than you would think which leads to a drastic increase in the cost of the raw land to put developments on. Houston is much more spread out with more land to choose from.