Local Builder Bets on Willis and Montgomery as Affordability Reshapes Texas Housing

As national homebuilding signals caution, one Montgomery County builder is moving in the opposite direction—doubling down on affordability and local demand.

For Alta Homes CEO Dru Kahlenberg, the current housing narrative doesn’t quite align with what he sees on the ground. While headlines point to a cooling market, declining permits, and builder hesitation, his company, Alta Homes, is accelerating its pace.

“Across the country, builders are pulling back, but that’s not what we’re seeing here,” Kahlenberg said. “Montgomery County is behaving differently because the fundamentals—land, pricing, and demand—still make sense for working families.”

Alta Homes is projecting 70 home closings in 2026, a sharp increase from approximately 45 in 2025. That growth is tied to a focused strategy: building entry-level and move-up homes priced between the $190,000s and mid-$300,000s—price points increasingly scarce in many parts of Texas.

The broader data underscores the contrast. National builder confidence has dipped, and new home permits in the Houston area fell 11 percent in the first quarter of 2026 compared with a year earlier. Montgomery County saw an even steeper 14 percent decline. Yet Alta is leaning into what others are retreating from.

“There’s still a path to homeownership in this market, but you have to know where to look,” Kahlenberg said. “If you’re trying to make the numbers work inside Beltway 8, it’s tough. But in Willis, in Montgomery, along Highway 105—the math still works.”

That “math” is central to Alta’s strategy. The company is currently active in four communities across Montgomery County, each designed to meet a different segment of demand while maintaining attainable pricing.

Lexington Heights in Willis offers access to Willis ISD and features a relatively low property tax rate of 1.58 percent—an often overlooked factor that can significantly reduce monthly payments. Nearby, Lake Conroe Village represents Alta’s most accessible entry point, with homes starting in the $170,000s. Crockett Meadows, located east of Conroe along Highway 105 in Splendora ISD, anchors the company’s Heritage Series. Meanwhile, East Gate Villas, nearing completion, caters to buyers drawn to a lower-maintenance, cottage-style lifestyle.

Together, these developments reflect a broader geographic bet: that secondary submarkets—Willis, Montgomery, and the corridors north and east of Conroe—will define the next phase of affordable new construction in the Greater Houston region.

That thesis aligns with emerging research. Economists at the Texas Real Estate Research Center have noted a shift back toward entry-level housing after years of upward pricing pressure. Supply at higher price points has outpaced demand, while more attainable homes remain undersupplied.

For Kahlenberg, the strategy is not just data-driven—it’s personal.

“We live here. My family is here,” he said. “We’re not building for an abstract buyer profile. We’re building for the people we see every day—teachers, first responders, young families trying to get into their first home.”

Alta’s size plays a role in that approach. With a team of roughly six employees, the company operates with a level of proximity that larger, national builders often cannot replicate.

“We don’t compete on volume,” Kahlenberg said. “We compete on showing up. When someone calls us about a home, they’re talking to someone who actually knows the lot, the floor plan, and the neighborhood—not a call center.”

That hands-on model extends into how Alta advises buyers navigating a complex market. Kahlenberg emphasizes three practical steps: secure lender pre-approval early, evaluate total monthly housing costs rather than just purchase price, and remain open to builder incentives that can offset higher mortgage rates.

“Many buyers get stuck on headline interest rates,” he said. “But when you factor in rate buydowns, closing cost support, and lower tax rates in certain communities, the monthly payment can look very different.”

To support its growth, Alta Homes is expanding lot acquisitions through partnerships with local developers while investing in a more structured marketing approach. A key component is its ALTA membership program, a tiered incentive system designed to strengthen relationships with local realtors and drive consistent deal flow.

Despite these forward-looking initiatives, the broader Montgomery County market remains in a cooling phase. For Kahlenberg, that environment presents opportunity rather than risk.

“When larger builders scale back, it creates space,” he said. “The buyers who still want new construction don’t disappear—they just need options. We’re focused on being that option.”

In a market increasingly defined by affordability constraints, Alta Homes is positioning itself at the intersection of price, place, and practicality—betting that local insight and disciplined pricing will continue to resonate even as the broader housing cycle recalibrates.