Houston Is An Experiment

Houston - Non-Zoning Tradition

is Being Watched by Many Cities

If you were to research urban-planning and the affects of zoning, you will find that Houston's Unrestricted Property is an example of economic and land use freedom that almost no other city experiences.  Feagin [1988] calls the political and economic structure a "free enterprise city".

In Buitelaar's book, The Cost of Land Use Decisions, he states that "Exercising private property rights without much public regulation has always been a key feature of urban development in Houston."  He sites three failed referenda (in 1948, 1962 and 1993) that attempted to introduce zoning.

As stated in his book, middle-income homeowners migrate toward zoning (or deed restricted property) because they believe that it will prevent undesirable externalities and preserve property values.  This is why such Master-Planned Communities as The Woodlands has experienced such growth and popularity.

Advocates of the free use of property claim that it promotes creativity and distributes physical space efficiently.  Leaving "un-claimed" land parcels unrestricted allows for individuals to follow their own individual dream for the property.  It may look like chaos.  But it is a fine expression of liberty and results in economic opportunity that is rare in other parts of the country.

As the nation begins to pull itself out of economic recession people are asking whether the lack of zoning played a part in our relatively light consequences (when compared to many other cities).  Indeed, the cities with the most regulated land use restrictions seem to be the ones that have had the largest downturn.  When there is huge amounts of "red tape" required for a developer to get a project off the ground, it naturally inhibits the natural growth of the city.  Add the fact that zoning gives the powerful interests of a city an additional tool to enforce their power - the result can stunt growth, push up prices and harm the citizens they were charged to serve.

Houston is still an experiment in land use.  Personally, I think the economic freedoms found in this area attract prosperity.  Variety is created when people have the right to chose a deed-restricted structure or a more free spirited way of life.

Houston Unrestricted Property - What does that mean???

If you were to ask the average person in The Woodlands what "Houston Unrestricted Property" means, you would likely get one of two answers. 

One answer would admit that they have absolutely no idea...they are perfectly happy in their highly restricted community and have no reason to learn about anything else.

The second answer might go like this...unrestricted property is that trashy land that you find when you leave The Woodlands.  It has trailers and industrial buildings and ramshackle homes...I have no idea why anyone would want to live there.

If you asked someone living on an unrestricted tract to define "Houston Unrestricted Property" they would tell you about the freedom, opportunity to do what they want and the breathing room to enjoy what they have paid good money to purchase.

It is ALL about FREEDOM to Them!!!

A lot is happening right now to shift people's attitude toward opportunity.  In Michael Hyatt's blog today he talked about Seth Godin’s new book, Linchpin: Are You Indispensable?  Since Godin is a "God" in the eyes of many of the nation's business leaders - I always try to listen to what he is saying.  Here is a passage that Hyatt posted in his blog after an interview with Godin:

"The linchpin is the person who takes an alternative path, who declined the take-care-of-you-bargain. The linchpin insists on making a difference, on leading, on connecting with others and doing something I call art. The linchpin is the indispensable one, the one the company can’t live without. This is about humanity, not compliance."  He explains that the take-care-of-you-bargain was made with those that were willing to trade a job for the compensation and security that was promised to them.  Since corporations are less often promising to take care of people and see them as a commodity to trade, the independant-minded folks are seeing their value rising.

I plan to talk about the independant minded owners of Houston Unrestricted Property more in future blogs.  For now, know that there are people who would never settle for living in a community where the rules are set by someone else.  Sure, they know that the decision opens them up to having "less than savory" property uses nearby...but the ability to set their own rules - well - it RULES!

Houston Unrestricted Property and Mother Earth News?

A revival of the independant minded

Baby Boomers has created a new

real estate specialization.

As increasing numbers of Baby Boomers reach retirement, many of them are not ready for the rocking chair.  They still crave the meaningful work and structure of a "job"...but as they have always done...they want to do it "MY WAY"

So, what is a vibrant, intelligent and remarkably creative person supposed to do after years of conforming to corporate structure?  Increasing numbers of this huge segment of our population are going back to their own roots.

When this generation was 20-something, they railed against the establishment and swore that they would never become a part of the corrupt corporate world.  One of their fantasy magazines was "Mother Earth News"

This magazine had pictures and stories about people who had followed the lyrics of the famous Joni Mitchell song that said  "Got to get back to the garden."  They dreamed of having the ability and courage to get closer to the earth and live a simpler life.

NOW - with the assistance of a retirement income from the corporate conformity for endless years - they are getting back to the garden in droves.  They have merged the business savvy learned in the corporate world with the fantasy of their youth.

Armed with the ability to budget, strategize and follow the plan these "Just Older Youth" are creating micro-gardens to sell at Farmers Markets all around Houston.  They are making cheese, growing olive trees to make olive oil, raising organic beef, cultivating herb gardens and all sorts of profitable businesses.  I go to the suburban farmers market in The Woodlands in the spring and fall seasons and I love it.

Houston unrestricted property can be as small as an acre or two and can offer the lifestyle portrayed in the "Mother Earth News".  If you have been looking for a way to expand your lifestyle during retirement, maybe it is time to heed Joni Mitchell's advice and get back to the garden. 

I can help all the real estate buyers who seek this lifestyle - so call and lets talk.

Wall Street Journal Video on Real Estate Market

Today's real estate market (particularly the market for Houston unrestricted property) is more hyper-local than ever before. Although it is interesting to hear what the "experts" say on the national level - those of us who are "in the local trenches" can produce statistics useful to you and your particular property.

Let me know if you need an update on the market where you live.

3 Motivations for Selling Your Houston Unrestricted Property in 2010

#1 - Property Taxes are Killing Your Budget?

There may have been a time when your property was extremely rural.  You lived a life of freedom and enjoyed every moment of being out in the country.

YOU have not moved - But everything has changed! 

Everyone wants a piece of the idyllic world that you used to love so much.  In addition to the traffic - the seemingly pretentious deed-restricted communities nearby - and the incessant noise ---- the government now thinks that you now have something so valuable that they can increase your taxes.

You didn't ask for any of this "growth" - yet the fact that you have land near property that someone else thought was more valuable has caused your tax assessment to explode. Maybe it is time to move out farther to get away from this intrusion. There are communities within driving distance of Houston that still have reasonable tax rates.

#2 - You are tired of the constant work to maintain the property

Most people who own unresticted property in the Greater Houston area have a full-time job too.  Often, the unrestricted tract of land demands another full-time commitment to simply keep the trees trimmed, all the buildings maintained, and if you have horses (or other livestock) you have a huge responsibility to take care of the needs of this kind of lifestyle.

Sure, it is usually worth the effort. The rewards are wonderful and immeasurable. But often the time comes when the benefits of such a lifestyle are simply not worth all the pain and sacrifice of the never-ending maintainence.

#3 - It is Time to Pick up the CASH and Get On with Your Life.

Life changes, and so do your needs.

Many people have lost jobs, been "downsized" - or often worse - have a self-employed business that is suffering from tough times.  When you are in the middle of crisis it can be hard to see the options that are available to you.

Many owners of Houston unrestricted property have the ability to transform the hardships of this lifestyle into a great source of profit. There are many reasons why 2010 may be the perfect opportunity to cash-in this asset.

Restricted and Unrestricted Communities Clash!

Houston Unrestricted Property Clashes

with Deed-Restricted Neighbors.

There are many differences between a "Restricted" community and "Unrestricted" property.  This blog is committed to opening the conversation about such differences.  However, purchasing your home or building lot in a restricted community does not give you all the protections you may have expected.

This photo was taken on FM 2978, the road that runs along the most western side of The Woodlands.  The lot is usually muddy.  The highlight of the property is the large, dimpled and damaged dumpster.  And to the back of the lot, you can see the only plumbing facility...and it is portable.  While the seller of the property is maximizing his right to the "Highest and Best" use of the property until a buyer is found - the situation is not good for everyone.

The sad fact is that the "port-a-potty" is placed very close to a really nice house that you can see through the narrow strip of trees.  Can you see it in the background of the picture above?

When you come around to the other side, this is the home of some unsuspecting family.  Little did they know that the hard work done to create a great, private place in the restricted community of Westwood would become the backdrop for the metal roofed shed you can see beyond the trees from here.

This is one SCREAMING EXAMPLE of how quickly a real estate investment can become worth much less because of the actions of others.  Please know - I do not know the owners of either property.  But I would be willing to bet that the proud people who built this home did not anticipate having a muddy, unsightly commercial tract in their back yard.

Can this kind of financial mistake be avoided? The answer is YES!

One of the many things I have learned from decades serving real estate clients is that purchasing property on the perimeter of a restricted community can often expose the buyer to the risks of unrestricted property.  I spoke about those risks in a previous post, "3 Huge Pitfalls of Unrestricted Property", on November 28, 2009.  Although I am a champion for the benefits of owning Houston unrestricted property, I will be the first to tell you that there are HUGE mistakes that can easily be made by the inexperienced buyer.