CDS was recently hired to perform a demographic study in the Oklahoma City area. While completing this study, we were somewhat surprised by the prevalence of large-lot residential subdivisions of relatively recent vintage. This article examines the possible reasons why large acreage residential developments are more common in the Oklahoma City area. ​

Paul Takahashi 
Houston Business Journal

Steve Spillette, president of CDS, was recently interviewed by the Houston Business Journal. His interview is as follows: 

Developers are lowering prices on large home lots as luxury home sales have slowed during the oil slump, according to a new report. Community Development Strategies, a Houston-based real estate research firm, recently released its bi-annual lot price survey, which polled developers in 100 communities across the Houston metro region about the cost of their home sites. Most major developers, except for The Howard Hughes Corp. (NYSE: HHC), participated in the survey, which was conducted in July and announced in late September.

CDS Community Development Strategies

​Last night at St. Arnold's Brewery near Downtown Houston, CDS released the latest edition of the Lot Price Survey. The event was well attended by representatives from the area's residential development industry. Beer and BBQ were served, and a presentation was given summarizing the latest trends and findings from the survey. Lennar's Cindy Hinson also presented on the topic of multi-generational housing.

Steve Spillette
CDS Community Development Strategies

This week, the Houston Chronicle published an article about a Municipal Utility District and the dissatisfaction of some homeowners that the MUD might issue bonds, which they believe could raise they property tax rates. The article, in my opinion, was slanted toward an angle that MUDs represent a developer-run local government agency run amok, with little oversight and unchecked taxation power. What this article fails to provide is the overall economic benefit that MUDs provide, and the reason for their existence in the first place. It also doesn’t explain who truly bears the cost of the initial infrastructure – the developers.

The industrial city of Baytown, just east of Houston, has long been ignored by residential developers who create masterplanned and amenitized communities.  CDS performed a series of studies for the Baytown – West Chambers County Economic Development Foundation in 2008 – 2010 covering both retail and housing demand in the area.  Our work showed that both new retail and housing development serving middle class households was justified by existing market conditions.  Since then, Baytown has had great success in attracting well-known retail businesses to fill shopping and dining gaps, plus new quality apartment development.  

The last piece of the puzzle was attracting a developer to create a new amenitized residential community serving the well-paid professionals and managers who work in the fast-growing industrial facilities nearby.  This customer base has long been buying homes in more distant suburban communities such as the west Lake Houston area and Clear Lake, and increasingly in the adjacent community of Mont Belvieu.  We demonstrated that a new higher-priced single family development was feasible in Baytown itself, especially if the community supported its development.  Finally, 2016 has brought the news Baytown has waited for.  The city has accomplished a lot since CDS’ studies, and it’s a credit to local leaders who have worked to attract new investment.  See the article linked below.

J. Kirby Snideman, AICP
CDS Community Development Strategies

Multigenerational housing is making a comeback. After decades of decline, the number of Americans living in multigenerational households dropped to roughly 26 million in 1970. Since then it’s more than doubled; currently there are an estimated 60 million Americans (18%) living in a home with three or more generations. This article examines the reasons behind this trend and also provides a look at the new types of homes being built to accommodate multigenerational families. 

According to data from the American Community Survey (ACS), the number of Americans living in multigenerational households in 2012 was 57 million, or 18.1% of the total population. These 57 million Americans occupied 4.3 million homes. That accounted for 5.6% of all occupied homes in the United States. That’s up from 3.7% of occupied homes in 2000.
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Multigenerational households were more common at the beginning of the last century, but declined significantly following World War II. During this time the United States experienced a period of economic expansion which manifested itself in widespread suburban development and an increased supply of single family homes. With home ownership as national policy, mortgages became widely available. In addition, suburban growth and a ready supply of spec homes across the nation accommodated a highly mobile workforce, resulting in many families being spread across several states. 

Steve Spillette
CDS Community Development Strategies

​Much has been said recently about the relationship between Houston and the price of oil. While most agree that the local economy is more robust than it once was, many are still wondering just how big an impact low oil prices will have. One way to answer this question is to look at how the region was impacted by high oil prices in the recent past. The synopsis: it added over 100,000 six-figure income households—something future growth is not expected to duplicate any time soon. 

​Millennials—those currently 19 to 34 years old (born 1981 to 1996)—have been a challenging demographic group for the home building industry to figure out. They’ve kept many wondering as to when and where they will finally decide to buy a home. 

​One major reason Millennials are acting differently has to do with finances. According to the New American Foundation, the average Millennial graduating with a bachelor’s degree has nearly $30k in student loans. This long-term burden of debt competes with other expenditures, and makes it harder to qualify for mortgages. Add fewer job opportunities (and job advances) to the mix and it’s not hard to understand why Millennials are living at home longer with parents, renting rather than buying, and putting off marriage and children. More than changing preferences—these are often sound financial choices. Eventually, Millennials will be buying homes, but they will do so at a lower rate than previous generations and on a delayed time schedule. 

Ty Jacobsen
CDS Community Development Strategies

For residents, the name of a neighborhood is usually a source of identity and pride. But for home builders and developers, it's often part of the marketing plan. Tabbed with their pleasant and descriptive monikers, single family subdivisions make up a large part of the American residential landscape. Sometimes when navigating that landscape, place names can seem a bit repetitive. This has been something we at CDS have noticed after compiling the Greater Houston Subdivision and Lot Price Survey for nearly 40 years now. In an attempt to measure just how common some names really are, we analyzed a list of over one thousand “active” subdivisions (actively selling homes) in the Houston area. Think you can guess the top ones? Take the quiz below. 

Link to article.  PDF of article.

David Weekley Homes has expanded into Indianapolis in April at a time when it is unusual for homebuilders to enter new markets. Houston-based David Weekley Homes purchased assets of established homebuilder Estridge Homes for an undisclosed amount. Founder Paul Estridge will run the new market operations for David Weekley Homes, said Chairman David Weekley. The acquisition made sense, said Weekley, because the two companies are similar...

CDS Market Research shows Indianapolis, like Houston, did not have big jumps followed by large dips in housing prices over the past few years. The firm shows 3,720 permits for single-family homes were pulled in 2010 in Indianapolis, up slightly from 3,604 single-family permits pulled in 2009.

​See link for full article