For years, Texas proudly wore its reputation for affordable housing as a badge of honor. Lower Texas real estate prices and rents boosted residents’ quality of life and drew waves of newcomers and businesses from pricier states like California and New York.
However, that affordability edge is slipping — and Texas Republicans are sounding the alarm about rising Texas real estate prices.
Across the state, GOP leaders are urgently working to tackle high housing costs, fearing the consequences if they fail to control soaring Texas real estate prices. As Lt. Gov. Dan Patrick bluntly stated, “The housing market has boxed young people out.” In 2020, the median Texas homebuyer was 48 years old. By 2023, that number had jumped to 58, signaling a growing crisis.
Growing Political Pressure
The urgency is not just economic — it’s political, too. Housing affordability is now one of Texans’ top concerns, with a 2023 poll showing that 90% of residents, regardless of political affiliation or location, view it as a significant problem.
“Texans want to see something done about housing,” said Felicity Maxwell of Texans for Housing. “It’s affecting their budgets and their lives. They’re ready for solutions.”
While Texas still beats states like California and New York on cost, leaders fear that the state could lose its competitive edge without swift action. After all, Texas’ booming growth has pushed demand far beyond supply, with an estimated 320,000 homes being short statewide.
Legislative Moves to Boost Housing
In response, Republican lawmakers aggressively push legislation to spark more home construction. Measures include making it easier to build:
- Smaller homes on smaller lots
- Backyard homes (Accessory Dwelling Units)
- Apartments in vacant office buildings
- Residences along commercial corridors
Senate Bill 15, Patrick’s top priority, would force large cities to allow homes on lots as small as 1,400 square feet—a drastic change from the existing 5,000–7,500 square-foot requirements.
“The bottom line is, there’s no new land coming online,” said State Sen. Bryan Hughes. “It’s supply and demand. If the land is available for homes and families, the government shouldn’t block it.”
Political Resistance Remains
Still, the path forward is rocky. Many Democrats are wary of Republican-led reforms, viewing them as extensions of broader efforts to limit local government powers. Neighborhood groups, too, have voiced concerns about unwanted development nearby.
Moreover, the proposed laws would only affect the state’s 18 largest cities, leaving rural and mid-sized areas untouched. Critics also point out that these reforms won’t do much to address the shortage of affordable housing for Texas’ lowest-income families.
Despite the hurdles, some Democrats — seeing the growing affordability crisis — have cautiously supported measures like reducing minimum lot sizes and legalizing backyard homes.
External Threats to Affordability
Even if these state-level reforms pass, other factors could undermine progress.
If reinstated, Donald Trump’s immigration and trade policies threaten to disrupt the construction workforce and drive up material costs. Mass deportations could shrink the strained labor pool, and tariffs on building materials like steel and lumber could cause prices to spike.
“It’ll be a shame if all the incremental savings we achieve get wiped out by tariffs,” warned Scott Norman of the Texas Association of Builders.
Learning from Other States
Interestingly, Texas isn’t alone in grappling with these challenges. States like Florida, Oregon, Montana, and California have passed similar legislation to increase housing supply and slow cost spikes. Experts believe Texas is moving early enough to avoid the severe housing crises seen elsewhere — but only if lawmakers act decisively.
“There’s still time to prevent a lot of pain,” said Alex Armlovich, a senior housing policy analyst.
Encouragingly, voters appear ready for change. Recent polls show strong bipartisan support for policies like smaller lot homes, accessory dwelling units, and reusing commercial spaces for housing.
Balancing Growth and Local Control
The debate’s heart lies in a clash between state intervention and local autonomy. Cities like Austin have already made sweeping changes to promote more housing, but others have acted slower — sometimes deliberately.
State Sen. Nathan Johnson, a Dallas Democrat who supports some of the GOP proposals, put it plainly: “Politically, some things are just impossible at the local level.”
For now, Texas Republicans — and increasingly, some Democrats — are betting that bold legislation and public support can keep the dream of affordable housing alive. But if history is any guide, the battle between state ambition and local resistance is far from over.