Texas homebuilder Plantation Homes has launched a line of new home plans priced from the $160,000s, according to the Houston Business Journal, which notes that the figure is well below the average $280,000-plus price tag on a single-family home in Houston.
The new line features nine plan options that span 1,425 to 2,592 square feet across one or two stories and are situated on 45-foot lots. Plantation Homes is currently building a model home for the line within the Beltway 8 loop on the city’s northwest side.
The brick-clad homes will feature amenities including kitchen island workstations and energy efficient construction.
The decision by Plantation Homes to offer home options below the $200,000 threshold comes as more builders turn their attention to the demand potential in the entry-level market.
Atlanta-based homebuilder Ashton Woods is set to introduce new-home communities aimed at entry-level buyers in Atlanta, central Florida, Austin, TX, and Phoenix. That announcement followed the launch this past fall of Meritage Homes' LiVE.NOW. brand and, more recently, Toll Brothers’ new T|Select line.
Common features among these entry-level endeavors include smaller footprints, energy-efficient construction and systems and a lower price point. In many cases, they are marketed specifically at millennial buyers.
Plantation, Toll Brothers and Meritage all targeted Houston with their lower-priced lines as that market was largely protected from the housing bubble and so has recovered more quickly from the market’s crash while retaining some measure of affordability.
In November, the National Association of Realtors noted that first-time buyers, which underpin entry-level demand, accounted for 35% of home sales last year, up from 32% in 2015 and the highest percentage since 2013. Those under the age of 35 accounted for six in 10 first-time transactions in 2016,