In my zip code (Kingwood), there are a total of 7 homes for sale for under $250K. 7. I am selling one of them. It's 90% re-done, in great shape, and I'm getting zero traffic. Nada. The price isn't set too high. It's just that Gen Z and the younger millennials just don't seem to be interested...at any price. I suspect they just don't see themselves as homeowners...and they may not see themselves as renters either. The only way these homes are moving is to drop the price so low that the investors scoop them up and turn them into rentals. That's what I had been doing, but now I'm getting out. Anyway, from my perspective, there's no inventory, and even less interest.

The mortgage on this place would be lower than the rent, and the rent doesn't even make sense from a cash flow standpoint. Doesn't make sense to rent it out; doesn't make sense to pay rent on it either. When I hear the pundits saying we need more housing, needless to say, I have a little different perspective.

FYI, 3BR, 2.5 BA, 1400+ sq ft town home.

Oh man I'm sorry we missed that email! I sincerely apologize and no I'll intent was there.

I asked the question not because I was trying to steal a client, or run it in, but because you seemed like you were mostly venting but if you wanted a second set of eyes on the listing, I'm happy to do that for you for free. The smallest thing can sometimes tank a listing. Happy to help. If you don't feel comfortable posting a link, feel free to text it to me so I can take a look tonight.

Red Pear Realty said:

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Oh man I'm sorry we missed that email! I sincerely apologize and no I'll intent was there.

I asked the question not because I was trying to steal a client, or run it in, but because you seemed like you were mostly venting but if you wanted a second set of eyes on the listing, I'm happy to do that for you for free. The smallest thing can sometimes tank a listing. Happy to help. If you don't feel comfortable posting a link, feel free to text it to me so I can take a look tonight.

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No worries. Thanks for the offer. I may take you up on it at some point.

94chem said:

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It's just that Gen Z and the younger millennials just don't seem to be interested...at any price. I suspect they just don't see themselves as homeowners...and they may not see themselves as renters either.

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What do you think they see themselves as then?

As a gen Z'er that spends a lot of time around other gen Z'ers this wouldn't line up with my experience at all. I'm not in the Houston metro area (Denver), so that may make a difference, but I don't see why. If anything I would think the want for homeownership there would be greater than Denver. Most I know just don't think they can afford it, and most can't here. I'm not sure why it's not selling, and best of luck with that, I just disagree with your hypothesis, or at least how I currently understand it.

2 things.

I agree on the townhome thing. They need to be at a pretty good discount. If you were a home buyer, what does a comparable single-family home go for? Even if you have to drive 25 minutes away, would you buy the townhome at whatever that discount is?

The market just hasn't had enough time to absorb the higher rates. Still a lot of people that want to buy that are trying to ride it out. Give it another year or so and buyers will start to forget about where rates used to be.

Expect rates higher for longer. The little ups and downs the last few months have higher lows which is a trend. People are going to have to come to grips with high 6s into the 7s IMO.

Entry level buyers at 3% could still do $7 coffee and $9 craft beer. Today they're probably sitting those things out as housing takes a bigger chunk of income.

This. Lennar and others are building and selling new homes just North of there in New Caney and Splendora for 250 and less. Even down below 200 for one model. These builders often offer financing much lower than conventional on their new track homes.

TxAG#2011 said:

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Kingwood is far away, young adults don't want to live up there.

When Gen Z say they can't afford housing what the really mean is they can't afford housing in the neighborhood they desire.

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If they have kids they do. Huge draw to places like Kingwood

Yes, but your competition is right next door in New Caney. Same price point would you want an older town home or a brand new starter home?
Talked to a developer last week and the Northeast new Hwy 99 corridor is now the hot spot for starter thru mid tier homes. Lots of homes and dirt work have now started with many new developments being planned.

Mas89 said:

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Yes, but your competition is right next door in New Caney. Same price point would you want an older town home or a brand new starter home?
Talked to a developer last week and the Northeast new Hwy 99 corridor is now the hot spot for starter thru mid tier homes. Lots of homes and dirt work have now started with many new developments being planned.

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Sure, but Plum Grove was a joke. I figured as long as we're throwing Splendora out there...

Are you sure the price isn't too high? I found the listing. There was a house in the same community with an extra 500 sq ft (extra bedroom) that was listed and sold around your price point recently. Yours is definitely nicer inside, but I don't know if nicer finishes = an extra bedroom.

Yes, there was one unicorn. It had no back yard, but was larger. There are also KW homes that are in the New Caney ISD. Not terrible, but not ideal.

agnerd said:

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What's keeping you from moving in there yourself and selling your current house? At what price point will you sell your current house and move into the townhouse? That response may help to answer some of your questions.

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6 kids. Next question.