The sale of 109 lots was finalized for a build-to-rent townhouse neighborhood just south of Houston, where the market for this alternative to apartment-rental living is growing.
PCCP, a Los Angeles-based real estate company, bought the lots from Barkley Development, a residential land developer active throughout Texas. The 13.7-acre property is at the intersection of Cullen Boulevard and Fite Road in the suburban city of Pearland. The townhouses, to be called Skymor at Pearland, will be constructed by Integrity Community Builders, an affiliate of David Weekley Homes.
“Population growth in this area is projected to increase by 10% over the next five years. Furthermore, demand for single-family rentals is on the rise,” Kevin Stuckey, a partner at Barkley, said in a statement.
Stuckey said the homes, ranging from 1,500 to 1,850 square feet, will be tailored for “medium-income” families. The property will include a recreation and playground area for residents. Pearland rezoned the vacant land from commercial to residential use in 2023 at Barkley’s request. The site is about a 23-minute drive from downtown Houston.
This is not PCCP’s first foray into the build-to-rent market in Houston. The company said in 2022 it would develop 195 single-family homes for rent northwest of the city in the Cypress area.
A 2023 CBRE report identified Texas as a market where single-family rental development was likely to intensify, aligning the state more closely with other Sun Belt states such as Phoenix, where this type of housing represents as much as 50% of rentals. The Houston Association of Renters found in May 2023 that single-family rental listings increased more than 17% year over year in the area.