As home prices skyrocket in Houston, a local builder thinks he has a solution: smaller homes.
J. Patrick Homes, a Houston-based upscale home builder, announced the new concept, which aims to offer luxury homes at more affordable prices, according to the Houston Business Journal. Typical business models, which can be found in 10 planned communities across Texas, range from around $600,000 to $1.5 million.
While J. Patrick typically builds on sites 70, 80, and 90 feet wide, with floor plans ranging from 3,000 to 6,000 square feet, newer, smaller homes will have six floor plans, ranging from 2,178 to 3,400 square feet, on 55-foot pitches.
The first phase of the Nuvo Vista line will include 29 new homes in Johnson Development’s Jordan Ranch, a planned community in Fulshear, outside of Houston.
“A $500,000 home today isn’t the size it was two, three or four years ago,” said Tim Drone, president of J. Patrick Homes. “A $400,000 or $500,000 home in a planned community is now considered a first move or even a first purchase.”
The new line is J. Patrick’s response to these rising prices, and if the 55ft sites are successful, the company plans to go even smaller with 50ft wide residential sites.
Supply chain disruptions impacting price and the ability to get materials to construction sites on time have had huge ripple effects in a housing market known for its affordability. Lumber bundles for builders in Texas have “increased 50%,” according to Drone.
Rising prices, coupled with a dwindling supply of single-family homes, caused the median price to rise 17.9% to $310,000 from January 2021 to January 2022, according to the Houston Association of Realtors.
New homes will likely start at around $450,000 and resemble J. Patrick’s signature design, complete with stucco, brick exteriors and metal roof accents.
The new line’s target customer base consists of first-time buyers moving up as well as empty nesters downsizing, Drone said. He expects to start selling those homes at Jordan Ranch by the end of this month or early April.
[Houston Business Journal] -Maddy Sperling