THE FORT WORTH STAR TELEGRAM
Hillwood Residential is breaking ground today on 78 single-family home lots in The Bluffs section of its Heritage community in far north Fort Worth, despite market conditions and reports that show housing starts at their lowest levels in years.
National home builders Standard Pacific Homes and Toll Brothers have committed to building homes priced at $300,000 and up beginning early next year. They’ll evenly split the number of lots and target move-up and relocation buyers.
"It’s exciting times, and we’re making a big deal about it," said Fred Balda, Hillwood Residential president. "The last couple of years we’ve been in a recession. Demand has built up for new product. The worst is behind us, and we’re playing into that timing."
The homes will be in a 30-acre section at the northwest corner of Heritage Trace Parkway and Ray White Road, east of Interstate 35W. It will take Hillwood about six months to build streets and put in utilities.
Balda cited continued job growth in the Alliance corridor and pent-up demand as reasons for forging ahead. About half of the homeowners in Hillwood communities work in Alliance, he said.
"Fort Worth’s economy is expected to improve faster than many areas of the country," Balda said.
Balda, though, said Hillwood Residential hasn’t been immune to the slow housing market, and builders are being selective about which lots to buy. Although 78 lots is a healthy number, it’s still less than half the number of lots Hillwood typically likes to develop at a time, he said. For example, in late 2008, the company delivered about 180 lots in its Saratoga community off Texas 170 and Alta Vista Drive.
In Heritage, builders started 232 homes the past year, and there are now about 2,600 in the 2,300-acre community, Hillwood said.
Executives with Toll Brothers and Standard Pacific agree that the far north Fort Worth market is strong. As one of the first builders to partner with Hillwood Residential, Standard Pacific has completed 560 homes since 2001.
"There’s still construction activity. There’s not much new lot development," said Mike Brady, Standard Pacific’s D-FW division president.
Toll Brothers has built more than 60 homes with Hillwood in the past three years.
"It’s a very steady and consistent market," said Rob Paul, Toll Brothers’ D-FW division president. "There’s a flock to quality. Buyers are going after the best they can afford right now."