Last month, the Texas Comptroller office, led by Glenn Hegar, released a study on housing affordability in Texas which looked into the key factors contributing to housing costs and how that compares with other states in the country.
“Simply put, our state, which is generally well-regarded for its low cost of living, is facing the pressures of a decline in housing affordability as our population and demand for housing continue to rise,” said Hegar.
The Texas Affiliation of Affordable Housing Providers (TAAHP) commented on the Comptroller’s findings in a press release, saying “the report not only underscores the severity of the crisis but also sets the stage for meaningful reforms in Texas’ upcoming 89th Legislative Session starting in January.”
The report has four key findings: it is becoming increasingly difficult for Texans to afford homes; signs of underinvestment in new housing are contributing to a shortage in housing needed to match new demand; affordability is bigger than just rising housing costs and interest rates, and; there are opportunities to amend regulations and zoning rules to provide some opportunity to address supply side costs.
Hegar is still optimistic, “lawmakers have taken critical steps in recent years to lower the overall cost of home ownership by reducing the property tax burden on Texans, and we are making progress as a state toward lowering artificial barriers and removing regulations that limit or inhibit home building.”
Texas Affiliation of Affordable Housing Providers, a Texas non-profit that provides resources and advocates for the affordable housing industry in Texas, says that the issues are impacting the rental housing market as well. TAAHP agrees with the Comptroller that the rising demand has outpaced the supply side.
“While Texas leads the nation in new building permits, the pace of construction hasn’t kept up with the increasing demand, particularly in metropolitan areas. The imbalance has increased home prices and rents, squeezing both potential homeowners and renters,” said TAAHP in a press release.
TAAHP believes that the lack of affordable rental units is worse here in Texas than compared to the national average. “This shortage leaves many low-income renters struggling to find affordable housing options.”
They agree with the Comptroller that there is significant “potential for legislative and regulatory reforms to address housing affordability.”
“Local governments could streamline permitting processes and easing zoning regulations to boost housing development.”
“TAAHP is determined to ensure affordable housing remains a top priority in Texas’ legislative and regulatory agendas, paving the way for sustainable solutions and a brighter future for all Texans.”
