Houston MPC Developers: Times Are Changing. Get Used To It

Like driving on a tire with a bubble, it’s bumpy and annoying at first. But the farther you drive, the smoother it gets.

That’s how Duane Heckmann, Houston adviser at Land Advisors Organization, described developing master-planned communities in Houston amid rapid growth, rising costs and municipal pushback.

Panelists at Bisnow’s 2026 Houston Master-Planned Communities event, held on Thursday at the Embassy Suites Houston Energy Corridor, said that despite increasing challenges, the region remains one of the country's best places to develop, with special-purpose districts helping to ensure returns. 

“Houston is the land of opportunity. It’s the safest real estate bet in the United States,” Heckmann said. 

The Houston metropolitan area added more than 1.5 million residents from 2010 to 2023, and the Houston-Galveston Area Council projects another 3.6 million by 2050. This has led development to sprawl across a larger area, and master-planned communities help make counties like Liberty and Montgomery among the fastest-growing in the country. 

“It will continue to go as it has gone,” Heckmann said of the growth. “Will it be a little bit more challenging? Yes. Houston is full of entrepreneurs, smart people who will figure it out.” 

All the easy land has already been developed, but that has been said for 30 years, according to panelists.

Developers continuously expand their site options, sending them to previously rural cities to inquire about building. But that will never work in some cities, panelists said, stopping short of naming names. 

“There are some municipalities we stay out of,” Jeff Dewese said. “From experience and meeting with the city council there, we’ve been told, ‘We don’t want any more growth.’ So we’ll take our toys and go somewhere else to play.” 

Dewese is president of the land division at The Signorelli Co., a developer with projects including the 4,700-acre Austin Point in Fort Bend County. He said the company has seen openness from officials in Montgomery and Fort Bend counties, the latter of which is expected to double in population by 2050.

Municipalities can push back by imposing minimum lot-width requirements, which can limit affordable housing development.

As housing and development costs have surged, Maple Development tries to spend time with municipal leaders to get them familiar with what Maple is selling, CEO Itiel Kaplan said.

“I would say, ‘Come see the product. This is for the first responders and the teachers. Look at the quality that the builders are putting in. Yes, they have to go smaller in size, otherwise the numbers won’t work, but these are nice products,’” Kaplan said.  

Developers must fund significant infrastructure for new master-planned communities, such as water and sewer plants. In Texas, they often use special-purpose taxing districts to recoup that investment.

The number of these districts in Texas has nearly doubled since 1998, the Houston Chronicle reported.

Nearly half of them are municipal utility districts. MUDs are most prevalent in the Houston area and allow developers to issue bonds to build outside city limits and impose taxes to repay the debt. 

Developers don't make money from selling lots, Kaplan said.

“The real value derives from the velocity and getting tax value on the ground,” he said. “Without the special districts, without the MUDs, our numbers don’t work.” 

The financing allows developers to break ground on large-scale communities like Maple Development’s Azalea in Pattison, which will offer 847 lots across 250 acres, or Caldwell Cos.’ Towne Lake, a 2,450-acre community in Cypress. 

MUDs help reassure investors outside of the state, said Peter Barnhart, chief development officer of Caldwell Cos.

“You see much smaller developments when you get outside of Texas, because without the special district financing, private equity can’t stomach the long-term nature of the project,” he said. 

The majority of Maple’s capital comes from overseas, but its investors see the Texas Miracle and want to be part of it, Kaplan said. While interest rates remain stagnant, local developers adjust to stay active, he said. 

“If you want to find opportunities, you have to stay active,” Kaplan said. “And we’ll continue seeing the growth of master-planned communities in Houston.” 

CORRECTION, FEB. 18, 7:40 P.M. CT: This article has been updated to correct a quote from Itiel Kaplan.