Some of the most affordable beach towns to invest in for 2019 lie on the Gulf Coast, especially in Texas.
In four-season coastal communities such as Port Aransas, Texas on Mustang Island, the average 50-foot Gulf front lot costs under $1 million — well under the $4 million to $5 million-plus average found in coastal California and Florida. “In addition to the bottom-line profits, people fall in love with our island. We’re an authentic beach community with a laid-back lifestyle more in tune with life in the tropics,” notes Keith McMullin, broker/owner of Port Aransas Realty.
In 2019, Texas housing sales recovered after second-quarter declines, trending upward amid lower mortgage interest rates and a robust economy. Mortgage applications for home purchases and refinances continued to rise, nudged by further dips in interest rates. “The construction of high-end, luxury homes and condos in Cinnamon Shore, Palmilla Beach, and Sunflower Beach have played a significant role in our expansion to new markets. We remain somewhat of a secret outside of Texas, but that is changing as more people discover the affordability and allure of Mustang Island,” according to McMullin.
Texans capitalized on lower rates, pushing mortgage applications for home purchases up 15.6 percent year to date (YTD). Refinance mortgage applications (more sensitive to interest rate fluctuations), have nearly doubled over the past six months. “Large areas of Mustang Island were undeveloped until recent years. Of the 367 miles of Texas coastline, the bulk of the land available for development is located on Mustang Island. We simply are not as widely known as other more mature beachfront communities,” says McMullin.
Investing in Texas real estate has been a no-brainer. Since 2010, the population has grown by 3.5 million, a million more than either Florida or California — converting into one and a half million new homes. Some 2 million of those people came from elsewhere attracted by new jobs, a fast-growing economy, more reasonable home prices, no state income tax, and a state ranked among the world’s ninth strongest economy.
“When compared to investing in other vacation/second-home markets, our story is very compelling. Lower property acquisition costs coupled with the vibrant Texas economy and steady population growth has created a healthy investment opportunity through appreciation and vacation rental income,” says McMullin.
For small coastal communities like Port Aransas, 2019 visitor arrivals from Texas and around the U.S. have so far exceeded last year’s numbers by 40 percent. Those arrivals are expected to rise, thanks to 3,300 out of 4,200 lodging units (up from 2,200 last year) that are now open for business (since Hurricane Harvey) with elevations of 10 to 11 feet above sea level.
Port A is definitely on the upswing, with new developments that include:
- The destination’s first conference center, slated to open in 2021 for gatherings of 500 to 2,000 attendees.
- 225-room conference center hotel, slated to break ground in February 2020.
- A new beachfront/bayfront marina and resort
- Cinnamon Shore, an upscale 1,000-acre master-planned beachfront, family- and pedestrian-friendly community that will add Cinnamon Shore South, a $1.3 billion, a 300-acre expansion that will more than quadruple the existing community. It will include luxury homes, Town Center residences, community pools, a dining district with several restaurants, a retail destination, a health and wellness center, and a boutique hotel.
- Palmilla Beach Resort & Golf Community opened a new golf course on June 1st with 9 holes of links-style play, plus THE LOOP – a 3-hole, par 3 course, plus a driving range. Palmilla Beach’s homes range from condos and townhomes to cottages and custom homes. Homesites begin in the $200s and completed homes from the $500s.
- Sunflower Beach Resort & Residences, nestled among 50 acres of protected dune preserves, features beach homes, several lots and 21 single-level poolside condos. It has nearly completed the first phase of 25 new ultra-luxury one- and two-bedroom beach cabins priced from $382,000 to $499,000 at The Camp.
Photos courtesy of Cinnamon Shore
Since Hurricane Harvey struck in August, Port Aransas has reopened 2,000 vacation homes, hotels and restaurants and continues to implement major upgrades to its beach towns.
The 18 mile seaside community of Port Aransas on Mustang Island is welcoming back throngs of tourists for what’s expected to be a busy summer season. The island’s beaches are in great shape, while its hotels, restaurants and vacation communities continue to reopen with major upgrades, expansions and improvements since Hurricane Harvey struck the Texas island in August 2017. Known as Texas’s fishing capital, Port Aransas is welcoming anglers back to its channels, back bays and public piers starting this summer to catch their favorite species. While fishing tournaments take place throughout the season, the two biggest include the 25th Annual Fishing Break Tournament from June 22 to 23, and the 83rd Deep Sea Roundup, claimed to be the oldest of its kind on the Gulf Coast, from July 12 to 15. The destination’s Hampton Inn is expected to reopen by August 2018 with the Holiday Inn opening this fall.
Upcoming developments from Cinnamon Shore, Palmilla Beach, Sunflower Beach and other tourism partners call to double the number of accommodations to 8,000 and reach 10 million visitors in the next five years.
Cinnamon Shore, an upscale master-planned beachfront, family- and pedestrian-friendly community, features 200 single family beach homes and 85 Town Center residences with poolside restaurants and retail space opening this summer. 2,100-2,400 square feet penthouses are priced from $790,000 and come with private elevators. Town Center retail spaces feature a market, bottle shop, coal-fire pizza restaurant with outdoor seating and a candy and ice cream store. Cinnamon Shore homes range from $500,000 up to $4 million. Lots are priced from $150,000 to $1.4 million. Cinnamon Shore’s owner, Sea Oats Group, is also investing $1.3 billion in new vacation homes on a 300-acre expansion.
Palmilla Beach Resort & Golf Club incorporates the relaxed personality of a beach town with the beauty and elegance of a luxury resort. This Mark Schnell-designed, master planned community is reminiscent of Florida’s highly acclaimed Rosemary Beach – where meticulously planned streetscapes epitomize walkable urbanism, invite connectivity and friendly interaction. New luxury two-bedroom seaside condos opened over Memorial Day weekend starting in the $500,000 price range and featuring open living areas, covered garages and large covered balconies. One-bedroom condos can range from $395,000. Palmilla Beach homesites start in the $200,000’s and go up to $1.4 million. Single-family homes can range from 1,800 square feet to 6,000 square feet and range in price from the $700,000’s to up to $4 million for the larger-sized home option, GlobeSt.com learns. Palmilla Beach plans to open a mixed-use development that could include a fitness facility, gelataria and a coffee shop.
Sunflower Beach Resort & Residences, nestled among 50 acres of protected dune preserves, features 21 single level poolside condos and is developing 25 new ultra-luxury one- and two-bedroom beach cabins priced from $382,000 to $499,000 in a new community called The Camp. The planned mix of custom-built homes, luxury beach cabins and modern condos are complemented by a central beach club, direct beach access and a short walk to downtown Port Aransas.In other developments, a major 2,000-person conference center is being planned, as well as a large sports complex and amphitheater. Port Aransas will also be the site of this year’s Texas qualifying events for the 2018 World Food Championships, from October 3 to 6.
Photos courtesy of Port Aransas/Mustang Island Chamber of Commerce & Tourism Bureau