Conroe Considers Impact Fees to Fund Growth — What Homebuyers & Developers Need to Know

Conroe, TX is one of the fastest-growing cities in the Greater Houston area—and the city is now taking steps to manage that growth sustainably. In a recent decision, Conroe City Council approved a $549,500 contract with engineering firm Freese & Nichols to conduct a comprehensive study on implementing impact fees for new developments. These fees would help fund crucial infrastructure projects, including road expansion, water supply, and sewer system upgrades.

📍 Coverage Area: This update affects growth planning in Conroe, Montgomery, Willis, The Woodlands, and surrounding areas of Montgomery County.

💡 What Are Impact Fees?

Impact fees are one-time charges assessed on new residential and commercial developments to offset the cost of expanding public infrastructure. These fees are designed to ensure that growth pays for itself, rather than increasing the tax burden on existing residents.

Unlike annual property taxes, impact fees are paid only when a building permit is issued for a new home or business. Funds collected typically go toward expanding road networks, sewer lines, and water systems—all essential services needed to support population growth.

📊 Key Details of the Conroe Impact Fee Study

• 10-Year Growth Forecast: The study will evaluate projected population and housing growth across Conroe and surrounding areas.
• Capital Improvement Plan (CIP): The CIP will be updated to reflect actual infrastructure costs, aligning fee rates with projected needs.
• Advisory Committee: A Capital Improvements Advisory Committee (CIAC)—with at least 50% of its members from the development and real estate sectors—will oversee the process.
• Public Hearings & Timeline: Expect public hearings in the coming years. If approved, impact fees could take effect as early as 2027.

Source: Community Impact

🏘️ Why It Matters for Buyers, Sellers & Developers in Conroe

🏡 For Homebuyers:

If you're considering buying a new construction home in Conroe after 2027, your final purchase price could include impact fees. This may affect your budget and could make move-in-ready homes more cost-effective in the short term.

✅ Tip: Ask your real estate agent if a property is in a proposed impact fee zone before you buy.

🏠 For Sellers:

If you own a home in Conroe or nearby areas like Montgomery, Willis, or The Woodlands, these new fees could work in your favor. As new construction costs rise due to added fees, resale homes without these costs may become more attractive to buyers.

✅ Tip: Emphasize that your existing home is not subject to infrastructure fees, potentially giving it a pricing advantage.

🏗️ For Developers:

The proposed impact fees would offer greater predictability in project planning. Knowing the fee structure upfront helps builders and developers more accurately forecast costs and pricing for new communities.

🏛️ City leaders, including Mayor Duke Coon, stress that this approach helps avoid raising property taxes or incurring excessive municipal debt:

“This is about stabilizing our situation 10 to 20 years from now so we don’t end up where we are today.” – Mayor Duke Coon

🔍 How This Affects Real Estate in Montgomery County

As Conroe real estate development accelerates, infrastructure improvements are essential. Growth is spreading into areas like The Woodlands Hills, Grand Central Park, and Artavia, where the demand for homes, schools, and roads continues to rise.

By implementing impact fees, the city aims to maintain a high quality of life without placing the entire financial burden on existing homeowners. Whether you're a homebuyer, seller, or developer, understanding how these changes may affect real estate in Conroe is key to making informed decisions.

✅ What You Should Do Now

• Homebuyers: Talk with your local real estate agent in Conroe about future impact fees and how they may affect closing costs or new home pricing.
• Sellers: Highlight the value of existing homes that won't carry additional infrastructure costs.
• Developers & Builders: Participate in the public hearings and work with the city to ensure fair and balanced fee structures.

📌 Stay Informed

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