Many have mixed feelings on the concept of “urban sprawl.” Many critics highlight concerns of social and environmental issues closely tied to the origins of expanding suburban developments surrounding cities. However, in the reality of 2021, urban sprawl appears to be picking up steam and suburban residential subdivision development may provide an exciting investment opportunity.
Central Texas is growing so rapidly that housing is struggling to keep pace
The takeaway from a recent article on the booming real estate market in places like Travis County is that Central Texas needs more housing. The reasons for this are largely like other national trends that we have seen in the last year. Specifically, workers with newly achieved work flexibility wish to move to more affordable or spacious areas.
This trend is no doubt also attributed to an influx of businesses into the state which we covered recently.
Is this temporary or permanent?
The housing article makes the case that the current red-hot real estate market in Central Texas is destined to cool off. This means that any new development in the area might not enjoy the same benefits a few years from now, that one that is nearing completion today would.
What legal obstacles stand in the way of a housing development project?
If you have an interest in targeting a residential development, biding your time to see how the market moves may be advantageous. You should also be cautious because new housing developments tend to come with a set of difficulties:
- Utility access
- Road access
- Zoning or land use issues
- Environmental concerns
Creating a residential sub-division is a time-intensive project that demands skilled legal assistance from the very beginning.
Every savvy commercial real estate investor keeps their eyes peeled for market fluctuations. The current boom in central Texas could be a sign to wait for a greater investment opportunity in the future.