The number of multifamily units in Tomball and Magnolia has nearly doubled over the past two years as area developers continue to search for ways to accommodate a skyrocketing renter population.
From January 2013 to July 2015, the number of apartments in the Tomball and Magnolia area has grown from 3,311 units to 5,941 units at 28 complexes—an increase of 79.4 percent, Apartment Data Services President Bruce McClenny said. The Houston-based company analyzes multifamily market trends across the area.
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“Because of Tomball being an outlying and a growing area, it really didn’t have that many apartment units relative to all of the other places in [the Greater Houston area],” McClenny said. “To see that kind of growth is really exceptional to the other market statistics.”
Renting population
Of the 5,941 total units in Tomball and Magnolia, one-bedroom apartments make up 49 percent, McClenny said. Another 40 percent is devoted to two-bedroom apartments.
“We see the growth of new jobs for young professionals in the growing Tomball job market as the catalyst for the apartments,” said Jerry Hayley, co-president of development firm 2978 Panormus LP. “People aren’t looking for two [or more] bedrooms anymore. They are looking for a smaller space.”
The firm plans to develop the $50 million mixed-use Peck Station with multifamily units in Tomball within the next five years. The construction of the new multimillion-dollar Packers Plus Energy Services campus at the Tomball Business and Technology Park as well as the relocation of ExxonMobil employees have attracted a new demographic, he said.
The construction of upscale multifamily units in live and work units at the future Magnolia Town Center on The Stroll could also bring more young professionals to the area, Magnolia Economic Development Coordinator Tana Ross said.
“When it comes time for revitalization of certain areas of Magnolia, I would think city leaders would be looking at multifamily housing and reviewing it,” Ross said.
In addition to young professionals, there is also a demand for senior apartment housing in the Tomball and Magnolia area, said Bobken Simonians, senior vice president of real estate investments and development for The ITEX Group LLC. The Harris County Housing Authority and the ITEX Group LLC are the developers of the Retreat at Westlock, a new age 62 and older complex planned for the Tomball area.
“If you see [the Retreat at Westlock], you cannot tell it is affordable, and that it’s targeted to a population that is getting lower rent than others,” Simonians said. “Lower rent does not mean cheap development or bad development.”
However, at a July 16 public hearing, a number of residents voiced concerns about a lack of advanced information about the complex and the potential negative effects on nearby properties.
Rent prices
A number of the new apartment complexes, especially those concentrated in the FM 2978 area in Magnolia, are marketed as luxury units with monthly rents ranging from $820 to $2,500, Magnolia City Council Member Anne Sundquist said.
“I’ve lived out here for quite a few years, and notoriously it has been that there have not been enough rental properties,” Sundquist said. “We do need rental properties for those people who are just starting out, whether it’s teaching or whatever it may be. Not everybody is either capable or ready to purchase [his] first home.”
From January 2013 to July 2015, the average effective price, which measures the difference between the rent market price and special discount offers, has surged from $843 to $1,067 per month for Tomball and Magnolia area units, McClenny said.
McClenny said it is a misconception that apartments bring a lower quality of life to an area, especially since many of the newer units are upscale.
“There’s some municipalities that are much more against apartment development for whatever reason,” he said. “I think at some point if they go overboard on it, that they are hurting themselves.”
Existing, future demand
“We see the growth of new jobs for young professionals in the growing Tomball job market as the catalyst for the apartments. People aren’t looking for two [or more] bedrooms anymore. They are looking for a smaller space.”
—Jerry Hayley, co-president of development firm 2978 Panormus LP
A declining number of first-time homebuyers and the nationwide housing market crash in 2009 led to the influx of multifamily complexes over the past two years, McClenny said.
“With the downturn that we had in 2009, we just tanked the single-family market,” McClenny said. “The down payments were jacked up in many instances, and it just made it hard to qualify for a home.”
Sundquist said she supports the construction of most new area apartment complexes.
“There are quite a few on FM 2920 east of Tomball and most of Magnolia is subdivisions or acreage plots, so as long as we have something that is quality that’s going to maintain its value and add to the community, I see a need for it,” she said.
With the completion of local road infrastructure, Tomball has seen an explosion of multifamily development, which is likely to follow in Magnolia, said Kelly Violette, Tomball Economic Development Corporation executive director.
“I don’t think we’ve even touched the iceberg of what’s to come,” Violette said. “You start to see the activity that before was primarily FM 1960 and south, and now it’s incredible to see the scale of projects that are being talked about.”
The number of multifamily units in Tomball and Magnolia has nearly doubled over the past two years as area developers continue to search for ways to accommodate a skyrocketing renter population.
From January 2013 to July 2015, the number of apartments in the Tomball and Magnolia area has grown from 3,311 units to 5,941 units at 28 complexes—an increase of 79.4 percent, Apartment Data Services President Bruce McClenny said. The Houston-based company analyzes multifamily market trends across the area.
[polldaddy poll=9013023]
“Because of Tomball being an outlying and a growing area, it really didn’t have that many apartment units relative to all of the other places in [the Greater Houston area],” McClenny said. “To see that kind of growth is really exceptional to the other market statistics.”
Renting population
Of the 5,941 total units in Tomball and Magnolia, one-bedroom apartments make up 49 percent, McClenny said. Another 40 percent is devoted to two-bedroom apartments.
“We see the growth of new jobs for young professionals in the growing Tomball job market as the catalyst for the apartments,” said Jerry Hayley, co-president of development firm 2978 Panormus LP. “People aren’t looking for two [or more] bedrooms anymore. They are looking for a smaller space.”
The firm plans to develop the $50 million mixed-use Peck Station with multifamily units in Tomball within the next five years. The construction of the new multimillion-dollar Packers Plus Energy Services campus at the Tomball Business and Technology Park as well as the relocation of ExxonMobil employees have attracted a new demographic, he said.
The construction of upscale multifamily units in live and work units at the future Magnolia Town Center on The Stroll could also bring more young professionals to the area, Magnolia Economic Development Coordinator Tana Ross said.
“When it comes time for revitalization of certain areas of Magnolia, I would think city leaders would be looking at multifamily housing and reviewing it,” Ross said.
In addition to young professionals, there is also a demand for senior apartment housing in the Tomball and Magnolia area, said Bobken Simonians, senior vice president of real estate investments and development for The ITEX Group LLC. The Harris County Housing Authority and the ITEX Group LLC are the developers of the Retreat at Westlock, a new age 62 and older complex planned for the Tomball area.
“If you see [the Retreat at Westlock], you cannot tell it is affordable, and that it’s targeted to a population that is getting lower rent than others,” Simonians said. “Lower rent does not mean cheap development or bad development.”
However, at a July 16 public hearing, a number of residents voiced concerns about a lack of advanced information about the complex and the potential negative effects on nearby properties.
Rent prices
A number of the new apartment complexes, especially those concentrated in the FM 2978 area in Magnolia, are marketed as luxury units with monthly rents ranging from $820 to $2,500, Magnolia City Council Member Anne Sundquist said.
“I’ve lived out here for quite a few years, and notoriously it has been that there have not been enough rental properties,” Sundquist said. “We do need rental properties for those people who are just starting out, whether it’s teaching or whatever it may be. Not everybody is either capable or ready to purchase [his] first home.”
From January 2013 to July 2015, the average effective price, which measures the difference between the rent market price and special discount offers, has surged from $843 to $1,067 per month for Tomball and Magnolia area units, McClenny said.
McClenny said it is a misconception that apartments bring a lower quality of life to an area, especially since many of the newer units are upscale.
“There’s some municipalities that are much more against apartment development for whatever reason,” he said. “I think at some point if they go overboard on it, that they are hurting themselves.”
Existing, future demand
