Katy - 77494 Apartment Complexes and impact to real estate prices (Houston: rentals, mortgage)

[acrackl]

It seems like there are several apartment complexes in the 77494 zip code these days with several more coming. There is one being built right across Seven Lakes Junior High and one even coming up at the corner of Peek Road and Westpark Tollway (near Grand Lakes).

One of the big attractions for the 77494 zip code are the Katy ISD schools - SLHS for example. Yes, it is overcrowded and can be competitive (academically). The major part of this (IMHO) is parent driven - with most parents taking an active interest in their kids' education OR driving them to excel. It is a separate matter whether this level of "push" is healthy or not.

I am more interested in what will happen to the home values - which are driven by the attraction to the glamour of the Katy ISD schools in the 77494 zip code with these new apartment complexes in the same area. Will the real estate in this area be able to hold their value/desirability?

Any thoughts?

[curbur]

I don't think it will decline too much, but as those apartments fill in more and the housing stock continues to get older around grand parkway over the next 10 years, the newer parts further out on the other side of the outlet mall or the undeveloped land north of I-10 will start to gain popularity as new mpc's are started. Cinco Ranch West, Cross Creek Ranch & Cane Island are good examples of this, but more are coming.

[jtothemak]

77494 will continue to be very attractive in the foreseeable future however areas going west or southwest that are just now starting to take ground like North Richmond and Fulshear will continue to be more popular. The new Fulshear High School and Middle School with LCISD I think will give Seven Lakes a run for its money in the upcoming future.

[acrackl]

The apartment model works on maximum occupancy - and their claim to higher/better rentals are also based on the location (zoned to good schools). That can't be good for the already crowded schools in that area (SLHS, SLJH, BDJH etc.), if more kids move in.

I wonder what the analogy would be based on past history - great ISD (or a part of it with great schools) with new MPC/buildout in an area and over time as neighborhood grows older (and apartment complexes are built), the desirability drops off .... Sugar Land?

[Failed Engineer]

If you are looking at the doomsday scenario for impact of multifamily units on previously desirable areas in Houston, consider Alief. It would take a lot to reach that level though.

[LocalPlanner]

Originally Posted by Failed Engineer

If you are looking at the doomsday scenario for impact of multifamily units on previously desirable areas in Houston, consider Alief. It would take a lot to reach that level though.

Like a full-scale economic collapse (1980s), which is far beyond what we're going through right now.

[CountryCowboy]

People who would live elsewhere rent apartments just so their kids can go to the schools here. Fact.

It has a positive effect on real estate valuation - homes are worth more. Location, location, location.

Biggest negatives are increased traffic, reduced affordability, and overbuilding to catch the bubble of people who cannot obtain a mortgage until lending standards change back to allow more loan money to people with lower credit ratings. And all the issues of apartment living - lack of privacy, cost, etc.

[Meyerland]

Originally Posted by Failed Engineer

If you are looking at the doomsday scenario for impact of multifamily units on previously desirable areas in Houston, consider Alief. It would take a lot to reach that level though.

Those apartments in Alief and Gulfton were shoddily built and meant for single individuals or couples. The party lifestyle was heavily promoted, along with VCRs. Then after the jobs went away in the eighties the apartment management had to turn to families. They had to greatly reduce rent and families were packed into tiny apartments. Schools were not that great at that time. (Parts of AliefISD were great at that time.)

The apartments in Katy are luxury apartments with huge living spaces and lots of bedrooms. They have great schools and lots of amenities.

The apartments were built with different clientele in mind and for different reasons.

[hbcu]

It's still the same as there are a lot of townhomes that were built way better than the ones now in alief that turned also....I see the same exact thing just in a different context

Too many apartments....we saw the same thing off fondren, Antoine, east side, etc...

[NTexas2010]

Originally Posted by Meyerland

The party lifestyle was heavily promoted, along with VCRs.

Lol I've heard that.

I think they should try it again. VCRs, guys!