Tomball, Magnolia see surge in apartment complexes

There are 3,750 apartments in the area now, compared with 2,500 two years ago, said Bruce McClenny, president of Apartment Data Services in Houston, which analyzes apartment trends throughout the region.

The apartment boom in Tomball and Magnolia is attributed to the area's explosive population growth during the last decade, which has led to a shortage of alternative housing options, he said. Energy companies moving to the area, such as Baker Hughes and Noble Energy, have also fueled growth.

"It's not hard to see that when you drive down about any freeway or road—2920, 2978, 249—you see buildings going up, expansions, corporate relocations from other parts of the nation to this region," said Bruce Hillegeist, president of the Greater Tomball Area Chamber of Commerce. "There are 1,100 people that move to Texas every day. It's said 70 percent move to the Houston region and 40 percent of that 70 percent are moving to the northern region, including northwest Harris County and Montgomery County."

Job and population growth is expected to continue as area transportation is improved, including the expansion of Hwy. 249 and the construction of the Grand Parkway.

There are two new apartments under construction off Hwy. 249 in Tomball's Northpointe area—Avenues at Northpointe and Oaks at Northpointe. In the northeast region of Tomball, the Alexan Creekside on Hufsmith Road and Kuykendahl Road is now open, and three new apartment communities are under construction in Magnolia on FM 2978 near Woodlands Parkway.

Avenues at Northpointe in southern Tomball will have 280 units at its community off Hwy. 249 when construction is complete at the end of June. The community started leasing its first set of completed units in October.

"They are leasing very well," said Catelyn Reynolds, a leasing consultant with Avenues at Northpointe. "We are 17 percent occupied and 25 percent pre-leased. We are anticipating come June we will sell at 98 percent."

The Alexan Creekside, a new apartment complex in Tomball at 8627 Hufsmith Road, has opened seven of its 17 buildings and will be finished with construction on all of its 380 units by the end of August.

"We are 25 percent leased and 15 percent occupied," said Malerie Sayers, a leasing professional at Alexan. "We are right on target. It's been fantastic. Everybody is saying how this area really needed something like this, something new. Even the surrounding communities were a little skeptical, but they've been very pleased with the quality of our apartments."

Renters

The renters range from college students to young professionals to retirees, Hillegeist said.

When representatives from Tomball met with hundreds of Exxon-Mobil employees at a relocation fair in Virginia last year, employees were looking for a variety of housing in the area, Hillegeist said.

"Just because they work for Exxon, does not mean they're going to buy million dollar homes. They have all sorts of price ranges, from the larger homes, to $150,000 to $250,000 and then those who may want to retire in a couple years and don't want to invest in a residence," Hillegeist said. "They want to live in an apartment because they will end up relocating to another state when they retire."

Many of the Exxon employees were impressed with the large variety of options in Tomball, Hillegeist said.

"I feel our region offers a variety of housing," Hillegeist said. "We need affordable housing. It's not like everybody is wealthy."

Rent increase

New construction in Tomball and Magnolia has pushed the average monthly rent up significantly in the area for a one-bedroom apartment. The cost increased to $925 a month in January compared with $728 in January 2013, McClenny said.

The number of renters in the area has steadily climbed since 2009—by 2 percent in 2010, 4 percent in 2011, 5.4 percent in 2012 and 6.3 percent in 2013.

"We are finally reaching a point where development has kicked in and we're going to meet demand," McClenny said.

Noble Energy, have also fueled growth.

"It's not hard to see that when you drive down about any freeway or road—2920, 2978, 249—you see buildings going up, expansions, corporate relocations from other parts of the nation to this region," said Bruce Hillegeist, president of the Greater Tomball Area Chamber of Commerce. "There are 1,100 people that move to Texas every day. It's said 70 percent move to the Houston region and 40 percent of that 70 percent are moving to the northern region, including northwest Harris County and Montgomery County."

Job and population growth is expected to continue as area transportation is improved, including the expansion of Hwy. 249 and the construction of the Grand Parkway.

There are two new apartments under construction off Hwy. 249 in Tomball's Northpointe area—Avenues at Northpointe and Oaks at Northpointe. In the northeast region of Tomball, the Alexan Creekside on Hufsmith Road and Kuykendahl Road is now open, and three new apartment communities are under construction in Magnolia on FM 2978 near Woodlands Parkway.

Avenues at Northpointe in southern Tomball will have 280 units at its community off Hwy. 249 when construction is complete at the end of June. The community started leasing its first set of completed units in October.

"They are leasing very well," said Catelyn Reynolds, a leasing consultant with Avenues at Northpointe. "We are 17 percent occupied and 25 percent pre-leased. We are anticipating come June we will sell at 98 percent."

The Alexan Creekside, a new apartment complex in Tomball at 8627 Hufsmith Road, has opened seven of its 17 buildings and will be finished with construction on all of its 380 units by the end of August.

"We are 25 percent leased and 15 percent occupied," said Malerie Sayers, a leasing professional at Alexan. "We are right on target. It's been fantastic. Everybody is saying how this area really needed something like this, something new. Even the surrounding communities were a little skeptical, but they've been very pleased with the quality of our apartments."