While we anticipate many of the residents will be using the Apartments as second homes to be close to their boats, Southeast Houston appeals to residents for its affordability and is fortified by resilient demand drivers such as the Port of Houston, the downstream petrochemical industry, Hobby Airport, Galveston Beach, the Kemah Boardwalk and NASA.
Seabrook Plaza will command higher rents due the nature of being a one of kind asset, waterfront location, transient renters who do not wish to buy a second home or condo at One Particular Harbour Residences and the walkability of the adjacent marina, boating and greater Seabrook Plaza Development.
Much of this new supply is concentrated in the southern portion of the submarket, where the median household incomes are higher due to its proximity to NASA and can support asking rents for new builds. New builds often consist of mid-rises that command a notable premium over older assets throughout the submarket. With the nearby presence of NASA and the ever-growing aerospace industry, median household incomes are often higher than the Houston Metro average. However, zoning and permitting is extremely challenging in the nearby proximity, which ensures high barriers to entry for future competition.