Three Houston-based real estate players — the Dinerstein Companies, Ascendant Development and Balcara Group — are betting big on Texas’ build-to-rent market. All three have announced projects in the outlying southwestern suburbs of Houston, the Houston Chronicle reported.
While the Dinerstein Companies is best known for its luxury high-rises in the city, its latest plan is to build 400 single-family rental homes across the sunbelt. The developer has already broken ground on the first two projects, including a 35-acre gated community planned for 186 homes in Missouri City, the suburb that sits between Houston and Sugar Land.
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A few miles southeast of Missouri City, Ascendant Development has started construction on Preserve at HW6, a 320-unit, single-family build-to-rent community in Fresno. The vertically integrated real estate investment firm says it expects pre-leasing to begin in fall 2024.
The average home sale price in Missouri City is $476,991, according to Houston Area Realtors. As home prices increase, it’s harder for families to afford down payments and closing costs. These “high barriers to entry” inspired build-to-rent investment in the area, said Ascendent co-founder Richard Owen.
Meanwhile, build-to-rent veteran Balcara Group is getting into the game in Brazoria County, where the median home price was $325,000 in December, according to Redfin.
The firm’s Balcara at Meridiana is the most rural of the three planned in Iowa Colony, a home-rule city in Brazoria. Plans call for 114 luxury paired villas with three- and four-bedroom plans and an average size of more than 1,700 square feet, according to CEO Paul Davey. It’s expected to break ground in February.
— Maddy Sperling