Catherine Lee, President of New Development – Texas, Douglas Elliman Real Estate

In an interview with Invest:, Catherine Lee, president of new development in Texas for Douglas Elliman, spotlighted the rise of branded residences in Houston, led by projects like the Ritz-Carlton and St. Regis. She praised Houston’s stable, developer-friendly market, and stressed the importance of early, strategic input on projects. “Real estate is a long game,” she noted, emphasizing patience, precision, and long-term value.

What are the key trends shaping new development in Houston and across Texas?

One of the biggest trends right now is branded residential development. These are for-sale condos affiliated with a hospitality brand. That model has existed for a while in other markets, but it’s new to Houston. Back in 2014, when I first began working in new construction in Houston, vertical living just wasn’t as popular, the market wasn’t ready for branded residences.

Now, it’s really picking up. It takes a while to get there because the construction costs are higher, and on top of that, there’s a cost for partnering with the brand. That includes the quality of finishes, the amenities, the management, and the consistency in service. It takes a more mature buyer to appreciate and value all of that. Today, we’re seeing Houston buyers who do.

Projects like The Ritz-Carlton Residences, The Woodlands, and The St. Regis Residences, Houston are great examples. The Ritz-Carlton Residences is already well under construction. The St. Regis Residences is a little further behind but has an incredible sales center opening soon. There’s also an Auberge hotel and residences combination project here. Some of these include a hotel component, some don’t. For buyers who want more privacy or a more boutique experience, the residential-only projects are attractive.

Dallas has had a bit more exposure to this type of product. Austin, on the other hand, is going through a bit of a correction — it had such a strong run. But even there, the long-term view is positive. People are still active. It’s just happening more quietly right now.

What makes Houston especially appealing for new residential and luxury mixed-use development?

Texas, in general, is known for being developer-friendly, and Houston really stands out in that regard. We don’t have zoning, although we do have deed restrictions, and the permitting process is relatively fast and straightforward. Austin tends to move a little slower, but even there, the development environment is still quite good.

Houston is also a stable market. You don’t see the wild spikes or crashes you might see in other places. Prices tend to grow at a steady pace, which gives everyone, from developers to lenders, more confidence.

We also don’t deal with a lot of oversupply. You’re not seeing 10 new high-rise condo buildings under construction at the same time. It’s more measured.

Another key factor is the buyer pool. A lot of people here already have a second home somewhere else, and they’re familiar with brands like the Ritz-Carlton or St. Regis. Now that those brands are showing up in Houston, they’re excited to bring that same lifestyle here.

Texas does require developers to use their own funds for construction — buyers’ deposits can’t be touched until the project is complete. That’s a big difference from places like Florida, where those funds can go directly into the building. It raises the bar, but it also means the projects that move forward are well capitalized and carefully thought out.

What is your view of today’s economic challenges?

I’m cautiously optimistic. No city is immune to the broader economy, but Houston’s fundamentals are strong. I don’t expect rates to drop significantly anytime soon. But honestly, I don’t think that’s a bad thing. When capital is cheap, sometimes projects move forward that probably shouldn’t. Higher rates make people more thoughtful and deliberate.

Our buyers tend to be financially savvy. They have teams of advisers and are strategic. While they’re certainly watching interest rates, they’re also focused on long-term value. When they see something unique — like a home at The Ritz-Carlton Residences, The Woodlands, or The St. Regis Residences, Houston — they understand the rarity of that opportunity. Once those homes are sold, that’s it. These are limited inventory offerings. That sense of scarcity adds a lot of appeal.

What does the labor environment look like for your team right now?

It’s extremely competitive. Every day, there are more licensed real estate agents out there. But new development sales require a different skill set. Our team isn’t bouncing around between listings or showings. They’re embedded in a single project, often for three years or more.

It’s like running a high-end boutique. They’re opening the sales center, welcoming potential buyers, and managing every detail of the sales process from start to finish. That level of singular focus is not for everyone, but for those who love it, it’s incredibly rewarding.

Some agents prefer the flexibility and variety of working in resale. New development sales require deep expertise and a long-term mindset.

What are your top priorities moving forward, and how are you thinking about the road ahead?

One of my biggest priorities is making sure developers see us as a strategic partner, not just a sales team. That means giving honest, data-backed advice. Sometimes it’s saying, “This pricing isn’t going to work,” or “This layout needs to be rethought.” We’re not doing anyone any favors if a project isn’t viable. The earlier we get involved, the better. Once the floor plans and finishes are locked in, changes become harder and more expensive.

I’m also focused on investing in my team. They’re incredibly smart and passionate, and I want them to keep growing. In a slower market, every deal takes more work. But I always remind them that this is when you sharpen your skills. When things are tough, that’s when you learn the most.

As for the future, I have a balanced outlook. Real estate is a long game. You have to be patient, strategic, and always willing to learn. What I love about this business is that it blends creativity with analysis. You get to dream big, but the numbers still have to work. Every project is different. Every market cycle is different. And that’s what keeps it exciting.