Subsidized Solutions

Near Northside's newest neighborhood: FedEx freight facility transforms intoLEED-certified homes

Welcome to Avenue Terrace!
Photo by Mark Hiebert
Tiles by resident children will be installed on community benches.
Photo by Steven Thomson
Former Mayor Bill White speaks at the Avenue Terrace ribbon cutting ceremony.
Photo by Steven Thomson
The land beside Avenue Terrace will become an affordable subdivision of 95single-family homes.
Photo by Steven Thomson

Standing in the shadow of downtown, the vibrant Near Northside bustles with generations-old taquerias, corner bodegas and shabby historic Victorian bungalows. Yet, in the past, the lack of zoning laws allowed for industrial sites to cut gashes through the historic residential grid.

Now, encroaching gentrification in the conveniently-located neighborhood also threatens the heavily-Latino community.

Enter Avenue Community Development Corporation (CDC), which recently unveiled its latest affordable housing community in the neighborhood. Less than three years ago, the development, dubbed Avenue Terrace, was a bleak FedEx freight facility. Now the land belongs to a 144-apartment community, with neighboring construction of a 90 single-family home subdivision of LEED-certified homes already underway.

The 20-acre site's former purpose clogged the dynamic Irvington Boulevard with intrusive shipping trucks. Soon, METRO's fleet of light rail cars will whiz by the development's doorstep, securing the area's potential as a walkable neighborhood.

"Most of the folks who have moved into these apartments moved in from this area," Mary Lawler, Avenue CDC executive director told CultureMap. "They had been doubling up with their parents or living in low-quality housing. People want the neighborhood to improve, but we want to make sure that the people who have lived here for a long time aren't forced out. So we're looking to create affordable housing, and people can be close to their jobs, friends and family."

Indeed, the Near Northside is increasingly desirable to the previous generation and new residents alike. One of the coveted 2011 Greater Houston Preservation Alliance's Good Brick Awards went to brothers Saul and Ruben Obregon for their renovation of their circa-1900 Victorian home in the area. Among the prospective transplants is none other than former mayor Bill White's son, Will White, a first-year teacher in the North Forest Independent School District.

At a recent ribbon cutting at Avenue Terrace's courtyard, Bill White, the son of two schoolteachers, recounted a recent anecdote involving his oldest son:

We don't spoil him, so he has to live off the money he makes. He says that he wants to live in the Northside. It's convenient to work and downtown. He said there's already a lot of good communities, there's a good mix of different individuals and older families and there are houses that could be fixed up and revitalized. I bet he's not the only one in this city that has noticed that about the Northside. It's our responsibility to make sure that people want to put down their roots here."

Already, the one- to three-bedroom units are nearly completely leased to middle- and low-income households. Monthly rents range from just below $300 to $1,000. Avenue CDC's planners have imbued the development with a sense of dignity through intelligently-designed interiors, a swimming pool and splash pad.

Children in the community have already painted a series of small tiles that will adorn benches. Other amenities include a computer lab and fitness center. What's more, residents will save money on utility bills thanks to Energy Star appliances.

Avenue Terrace was made possible with financing by Capital One Bank, Hudson Housing Capital, City of Houston Housing and Community Development Department, Texas Department of Housing and Community Affairs, Houston Endowment, Inc., Neighborworks America, Houston Housing Finance Corporation and Local Initiatives Support Corporation. Capital One provided debt and equity financing, including a $9.6 million construction loan and a $3.4 million permanent loan for Avenue CDC. The endeavor was also supported by a Houston Endowment grant and a subordinate loan from the City of Houston.

Construction is already in progress on the adjacent single-family project. When complete, the development will include a neighborhood park, walking trail and bike trail that links the development with Moody Park.

"With the single-family homes," White said, "people can put their roots in the community and say where they're from 20 years from now, that they grew up in a house and point down the street to the park and the neighborhood. Those are some of the best memories for many people."

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THE AMERICAN DREAM

How long it takes to save for a home down payment in Houston

iStock

Houstonians don't have to save long to afford a down payment.

Saving for a down payment remains one of the biggest barriers to homeownership nationwide, but a new report from Realtor.com shows San Antonio area buyers face a far shorter wait than most Americans.

According to the real estate site’s 2025 analysis, the typical U.S. household needs seven years to save for a standard down payment, a notable improvement from the 12-year peak in 2022. Still, the timeline remains roughly double the pre-pandemic norm, reflecting higher home prices, larger down payments, and lower household savings rates.

Houston, however, stood out as one of the most accessible major metros in the nation. The Houston-Pasadena-The Woodlands metro boasted one of the shortest time sto save for a down payment among the nation’s 50 largest markets, with households needing just 3.5 years to reach a typical down payment, according to the study.

The report found that Houston’s median down payment from January through November was $14,927. A median household income of $83,452 was estimated to produce an annual savings of $4,228. Notably, San Antonio, the only other Texas city included in the report, had the shortest time to save for a down payment at just 1.3 years.

Nationally, the time needed to save has shortened as home price growth cooled and affordability modestly improved. Still, saving for a down payment takes significantly longer than it did before the pandemic.

“Higher home prices and intensified competition have pushed typical down payments higher, at the same time that inflation and rising household expenses have reduced savings rates,” said Danielle Hale, chief economist at Realtor.com, in a release. “Although conditions have improved since 2022, today’s timeline shows that saving for a home takes meaningfully longer than it did before the pandemic, especially in high-cost markets.”

Lower savings rates have played a key role. The U.S. personal savings rate has averaged 5.1 percent of income so far in 2025, down from the pre-pandemic norm of 6.5 percent, limiting how quickly households can build funds for upfront housing costs. Meanwhile, the typical down payment has more than doubled over the past six years — rising from about $13,900 in the third quarter of 2019 to $30,400 in the third quarter of 2025.

In high-cost coastal metros, the impact is far more severe. Saving for a down payment can take 20 to more than 35 years in California cities like San Francisco, San Jose, Los Angeles, and San Diego, effectively sidelining many first-time and moderate-income buyers.

“In high-cost markets, the typical down payment alone exceeds a full year of household income,” said Hannah Jones, Realtor.com senior economic research analyst. “That reality makes homeownership feel unattainable for many buyers, particularly younger households trying to enter the market for the first time.”

Despite those challenges, the report notes that roughly three-quarters of Americans still consider homeownership part of the American dream. Realtor.com says easing rents could help first-time buyers save more, while repeat buyers may use accumulated savings to reduce loan balances and manage higher monthly payments.

“Saving consistently, even in small amounts, is a meaningful first step toward homeownership,” Jones said. “In today’s market, building that financial cushion can make a real difference when buyers are ready to act.”

home market economy down payments home ownership real estate