Why are homes in Bellaire, Kirby, River Oaks, Memorial, so expensive? (Houston: mortgage, house)

[PinkLadyK]

They are expensive because people will pay for them.

[AcresHomes44]

As others have stated, people have the money to afford those pricey homes. Although some celebrities live in those areas as well, but you'd never know because Houston celebs tend to blend in.

[gwarnecke]

It's not mysterious that someone making half a mil a year would consider his/her time to be valuable enough to justify paying a premium to live near work. And the aforementioned neighborhoods are all located near major employment centers for highly-paid professionals.

What I do find quite mysterious are the following:

1) Several of the aforementioned high-end areas, and others (for example, Tanglewood) are actually zoned to quite poorly-rated middle and high schools, and yet they don't sell at a discount to high-end areas with uniformly excellent schools (ie SBISD Memorial Villages). I get that some parents choose to go private, but it still seems like poor public schools should limit the appeal of these neighborhoods more than they do. In general, wealthy folks appreciate good value just like the rest of us.

2) While the super-wealthy are willing to pay a big premium to minimize their commute, this doesn't carry over to the moderately wealthy as much as you'd think. I work in the Energy Corridor, most of my colleagues make well into the six figures, but very few live within 20 minutes of the office, even though there is lots of affordable housing zoned to excellent schools right here. Most of my childless colleagues live inside the loop (30-45 minute commute), and then when they start families they move out to Katy or Cypress (45-60+ minute commute and getting worse every year). I personally I find it bizarre that folks making very decent money are willing to waste 1-2 hours a day commuting when they really don't have to.

[MAROON79]

location, location, location.

High salary workers in downtown, galleria, and doctors in the med center want short commutes. ANd not to mention - all the sports teams, all the museums, a lot of the best restaurants are in those areas. Makes for a pretty convenient life.

Those areas are much harder for young people to buy into (unless you have great family wealth), although Vinson & Elkins just announced that first year associates will make $195k per year salary. Pretty high for someone with zero experience. If the Husband or wife is also working then that young couple can afford a pretty nice pad.

[LocalPlanner]

Originally Posted by gwarnecke

It's not mysterious that someone making half a mil a year would consider his/her time to be valuable enough to justify paying a premium to live near work. And the aforementioned neighborhoods are all located near major employment centers for highly-paid professionals.

What I do find quite mysterious are the following:

1) Several of the aforementioned high-end areas, and others (for example, Tanglewood) are actually zoned to quite poorly-rated middle and high schools, and yet they don't sell at a discount to high-end areas with uniformly excellent schools (ie SBISD Memorial Villages). I get that some parents choose to go private, but it still seems like poor public schools should limit the appeal of these neighborhoods more than they do. In general, wealthy folks appreciate good value just like the rest of us.

2) While the super-wealthy are willing to pay a big premium to minimize their commute, this doesn't carry over to the moderately wealthy as much as you'd think. I work in the Energy Corridor, most of my colleagues make well into the six figures, but very few live within 20 minutes of the office, even though there is lots of affordable housing zoned to excellent schools right here. Most of my childless colleagues live inside the loop (30-45 minute commute), and then when they start families they move out to Katy or Cypress (45-60+ minute commute and getting worse every year). I personally I find it bizarre that folks making very decent money are willing to waste 1-2 hours a day commuting when they really don't have to.

Unless you can afford a home zoned to Memorial HS, your other options for perceived high-quality HS (Stratford and to a much lesser extent Westside) have more socioeconomic diversity than many of those folks are comfortable with (I have to wonder if their fears are really justified or not). And homes zoned to Rummel Creek and Wilchester ESs have actually become very expensive, and may require more updating than folks want to do.

Plus, I think folks who grew up in modern high-SES suburbs have a natural inclination to think that people of means should raise their families "further out" - and the EC is now considered "in the city" (which technically it is), so is therefore less appealing (again, the fears).

Lastly, they may be thinking that the loss of time with their family is worth it for both the schools and a $450,000 home that would be $650,000 east of SH 6 - the perceived financial savings will allow them to take nicer vacations, send their kids to upscale athletic programs, have a nicer pickup, buy a fishing boat, get a good hunting lease, etc.

[PinkLadyK]

I think it also depends on how you grew up. If you grew up living in a suburb, it probably feels just like "the place where most people live" as an adult. If you grew up closer-in, it feels harder as an adult to "accept" living in the 'burbs.

[supfromthesite]

I think homes that aren't zoned to Memorial Middle or High School, or in River Oaks/Afton Oaks, are generally cheaper

[KerrTown]

Bellaire and West University would have been undesirable 20-30 years ago because of the old small houses, mostly 1950's ranches and some now 100-year old houses in Bellaire. People would have preferred new houses down the Southwest Freeway on the edge of the city since the post-war suburban boom was at the peak. The city only became popular with the increased commuting times when the metro area started doubling in population, the ensuing traffic jams degrading the quality of life, and developers tearing down/renovating old houses in urban neighborhoods.

Lamar Terrace in the 1990s is a good example of the inner-city teardown phenomenon that popped up in the last decade. This formerly run-down subdivision had been an open secret for a long time, despite the desirable location adjacent to the upscale Galleria mall and Uptown offices.

Here's a good example of a run-down 1950's ranch still left and the teardowns that surround it:
https://goo.gl/maps/mUxE6HJ3zNn

I just can't believe that long-time Houstonians are willing to pay double for the same house in the suburbs. $600,000 for a Houstonian would be considered excessive, but a reasonable price for a California transplant. With the reliance of property taxes in Texas, you might be struggling or forced out of your longtime residence if it gets gentrified by teardowns.

[hbcu]

I know alot of people who had access to homes off 610 and Meyerland years ago but chose not to pursue those homes for whatever reason and are kicking themselves at times cause of the values. But at that same time, those areas hit some rough patches and it wasn't the safest. Folks kept moving West/SW as a result but the same things kept happening but the difference is not everyone can move back in at the price you move out so that stems the tide.

However though, as much as inner city living is desired, your still missing things the suburbs have and most of the things inner loopers congregate at is basically on 1 or 2 major streets (Westheimer/Bellaire, etc.) The suburbs offer easier access to day-to-day items for the family as a whole.

[chris_ut]

Originally Posted by hbcu

However though, as much as inner city living is desired, your still missing things the suburbs have and most of the things inner loopers congregate at is basically on 1 or 2 major streets (Westheimer/Bellaire, etc.) The suburbs offer easier access to day-to-day items for the family as a whole.

You are kidding right? There is a ton of great stuff all over the loop. Also I can easily walk to my neighborhood grocery store and some restaurants here versus having to drive miles in the suburbs to get to anything.