One of these approaches is called “downzoning,” which consists of adding residential units to areas that were previously only commercial. In addition, several mixed-use developments underway, including Collin Creek and Haggard Farms, will feature single-family housing components when completed.
“From a financial perspective, we want to provide the amenities that give current and future residents a great quality of life,” Day said. “Hopefully we get the right mix and are providing a really great quality project.”
The gist
The most common pattern for developing an area sees homes built first, with commercial development following after.
More concisely, “retail follows rooftops,” Day said, and the development of Plano to this point was no different.
“Plano residential development occurred largely from the 1960s through the year 2000,” Day said. “By the year 2000 our residential land started running out, and you started seeing higher density development start to occur. ... The city does have 4% undeveloped land right now, so we’re at 1,863 acres as of January of this year.”Day said demand for more rooftops in Plano is still high. And with little room left for more housing, Plano is utilizing “downzoning” to include more residential development in places that used to be only commercial.
What’s happening
Prior to redevelopment, Collin Creek Mall was a fully commercial property. The almost 500 single-family homes set for the development at the corner of Alma Drive and 15th Street when it is finished is indicative of the pattern of downzoning to add housing options in Plano.
In June, City Council approved an expansion of a townhome development at Haggard Farms, another mixed-use development set for the corner of Spring Creek Parkway and Windhaven Parkway, which will add to the project’s planned housing component.
The city partnered with the developers at both projects to establish public improvement districts, which reallocate sales tax back to development costs. Plano Director of Special Projects Peter Braster said that PIDs “help bring down the cost to the developer so that they can construct homes.”
Day added that city staff work with developers to incorporate a housing element in redevelopment projects.
“What we’re trying to do is balance those competing interests of having it be a financially successful project that works both short-term and long-term for all parties,” she said. “We know there’s a great demand for more housing in this area. We also know there is a need to provide the infrastructure to support more housing—the commercial side helps support the residential side.”
The impact
In April 2019, the median home sales price in Plano was $351,500 while 545 homes were listed on the market that month.
The median sales price of a Plano home was up 56% to $549,000 in April 2022. This April, the median sale price remained stagnant at $550,000 while 417 new homes were listed on the market.
Realtor Pamela Harrison said that while housing inventory is up across North Texas “in areas with lots of new construction like North Fort Worth, Aubrey or Princeton,” housing inventory in Plano is “tighter.”
“In Plano, you’re buying location, schools and established neighborhoods—not just square footage,” she said. “Inventory is tighter, especially under $600K. Buyers may face more competition for updated homes in hot school zones.”
Harrison said that interest rates currently hovering around 6.5%-7% have “priced some buyers out, reducing competition.” She added that homeowners who bought or refinanced at lower interest rates “aren’t in a rush to list.”
Day added that redevelopment projects will add a mix of for-sale and for-rent housing options to the market in Plano.
“That is really the community’s next generation of redevelopment,” Day said.
What’s next
City officials are expecting further changes to Plano’s housing landscape as a result of the most recent Texas Legislative Session.
Day said that Senate Bill 840 could have “a meaningful impact on the city’s land use policy.” The bill, which goes into effect on Sept. 1, will allow mixed-use or multifamily developments by right in any area of the city zoned for office, commercial, retail or warehouse uses.
“The bill allows multifamily housing by right in commercial areas,” Day said. “And it preempts the city’s ability to regulate density, parking height and lot coverage.”
