By TONY GUERRERO
Hays Post
Grow Hays predicts an increase in housing units for 2025 after only 21 homes were built in 2024.
Doug Williams, executive director of Grow Hays, hosted a Tuesday luncheon to discuss housing sales volume, market conditions, inventory shortages and upcoming projects.
"I think a year from now when we have this meeting again... it's going to be a different conversation because we're going to be in a much better position to be building a lot more homes," Williams said.
Home sales volume rose by $4 million in 2024, with a slight increase in transactions. Williams said the average sale price increased by 1.5%, compared to the 12.2% increase the previous year.
In 2024, housing inventory remained low. Most transactions involved homes priced less than $200,000, while those between $200,000 and $300,000 sold quickly.
"They continue to sell very well, and that continues to be a sweet spot market," Williams said.
Williams predicted that housing supply issues will continue in 2025. Twenty or fewer single-family homes are expected to be built, and rental prices could increase due to continued demand.
Only 15 single-family and six multi-family home permits were issued in 2024. Williams said he expects more than 30 new multi-family units in 2025.
Williams highlighted major development projects, including The Grove, Chestnut Suites, Tallgrass’s second and fourth additions, and a new shopping center planned north of I-70.
"Retail is an area where we have not done what we need to do in our community as a regional hub," he said. "We need more variety in retail."
The luncheon also covered market challenges such as subcontractor shortages and funding difficulties. An attendee asked Williams about the potential impact of tariffs on projects.
"I think that they could make a big difference," Williams said. "It's that unknown that creates this hesitancy for anybody to push forward a new project where you don't know what your costs are going to be."
Williams said tariffs pose a significant risk, affecting material prices, infrastructure and construction costs.
Williams also noted a shortage of available lots, particularly in northwest Hays, a lack of skilled construction labor, and the difficulty of attracting private investors to multi-family housing due to low returns on investment as barriers to development.
Williams compared Hays to other communities regarding mill levies, median home prices and property taxes.
"If you look at the other communities, they’re the ones that are building a lot of houses. They're all having significant economic development in those communities," Williams said.
He responded to concerns about high taxes by noting other towns have higher tax burdens, even with comparable or lower home values.
Williams also discussed a lot on 27th Street and Canal Boulevard that will be used to create small rental housing units.