Conroe Exits $193M Old Conroe Road Project—Here’s How It Could Affect Local Real Estate and Growth

by Bren Brewer

In a major shift for Montgomery County infrastructure planning, the City of Conroe has officially withdrawn from the $193 million Old Conroe Road extension project, citing financial limitations and competing infrastructure priorities such as water and sewer needs.

Originally designed to span 5.7 miles from Sgt. Ed Holcombe Boulevard to Old Conroe Road, the project was to include a critical new bridge crossing over the West Fork San Jacinto River and Lake Creek. The long-anticipated roadway was expected to improve traffic flow, support new development, and connect northern Conroe to The Woodlands and Magnolia more efficiently.

Despite backing from the Houston-Galveston Area Council (HGAC) and more than $170 million in federal funding, Conroe was expected to cover roughly $40 million. With no funding commitment from Montgomery County, the city opted to reprioritize its bond allocations.

🗣️ “We don’t have any partners.” – Norm McGuire, Assistant City Administrator, City of Conroe

🗣️ “Given the current circumstances, staff does not believe it is fiscally responsible…” – Conroe City Staff, April 29 Letter

Montgomery County Still Plans to Move Forward

Despite Conroe’s withdrawal, Montgomery County leaders—including County Judge Mark Keough and Precinct 2 Commissioner Charlie Riley—say they will continue efforts to preserve the federal funding and move forward with the project. However, it's unclear how the county plans to replace the city’s financial role.

Councilman Howard Wood, who opposed the cancellation, raised concerns about the long-term political and financial fallout:

“If we pull out of it, it certainly will be remembered.”

💬 What This Means for Real Estate and Growth in the Conroe Area

For homeowners, developers, and investors focused on the Conroe real estate market, this cancellation introduces several key implications:

✅ 1. Slower Regional Connectivity

Without the road expansion, north-south traffic between FM 2854, FM 1488, Old Conroe Road, and The Woodlands may remain congested—potentially discouraging new development in areas like Montgomery, Woodforest, and Panorama Village.

✅ 2. Development Delays

Many builders and commercial developers anticipated improved access to open up new residential subdivisions and commercial sites. With the project in limbo, permits and land acquisition strategies may be delayed or revised.

✅ 3. Property Value Impact

Increased accessibility typically boosts nearby property values. The lack of immediate infrastructure investment could slow appreciation in pockets that were expected to benefit from the improved roadway.

✅ 4. Shift in Investment Focus

With bond funds now directed toward essential services like water and sewer improvements, Conroe may see renewed investment in urban infill, redevelopment, and utility upgrades, especially in older neighborhoods closer to downtown.

📍 Conclusion: A Road Not Taken—For Now

While the exit from the Old Conroe Road extension project is a setback for connectivity and planned development, it also reflects the fiscal reality of managing growth in one of Texas’ fastest-growing regions. As the Conroe area continues to expand, real estate professionals and residents alike will be watching how infrastructure decisions shape the future of local development.