Texas has a deep housing shortage that ’ s driving up home prices and rents . And it ’ s getting worse . In 2022 , Texas needed about 320,000 more homes than it had , up from about 306,000 the previous year , according to an estimate released Wednesday by housing policy organization Up For Growth . That shortage illustrates how Texas , which builds more homes than any other state , has struggled in the last decade to build enough homes to meet demand amid its economic boom . The problem undergirds the state ’ s housing affordability woes . Home prices and rents in the state ’ s major metropolitan regions have skyrocketed owing to increased competition for a limited supply of homes . “ While Texas has been building a lot of housing overall , in many places , it just has not been enough to keep up with demand in the state and people moving in from out of state ,” said David Garcia , Up For Growth ’ s policy director . Texas isn ’ t alone . A nationwide shortage of homes has driven up housing costs across the U . S . and has been discussed heavily in this year ’ s presidential race . In its latest report , Up For Growth said the country needs 3.8 million homes to ease its housing affordability problem , slightly less than in previous years . In many of Texas ’ biggest urban areas , the shortage worsened . It grew in the Houston , Dallas-Fort Worth , San Antonio and McAllen regions , according to Up For Growth — even as many those places greenlit the construction of more

homes than they did prior to the COVID-19 pandemic . Much of that housing growth came in the form of building more detached single-family homes in outlying suburban areas , Garcia noted — the way Texas has traditionally managed to keep housing costs at bay . But the limits of that approach have become increasingly apparent amid the state ’ s high population growth , he said . “ In many places in Texas , you see the limits of how only outward expansion cannot meet the full demands of the housing market ,” Garcia said . Other places in Texas , like El Paso , saw their housing shortage ease . An apartment construction boom in the Austin-Round Rock region helped the region beat back its housing shortage by nearly a third . The boom injected tens of thousands of new apartments into the market , forcing rents to fall for 16 months straight . The region still needs nearly 24,000 homes , the report found — about 11,000 less than it needed the previous year . Though the nation ’ s housing shortage eased in 2022 , that trend likely won ’ t persist for long , Garcia said . For one , apartment builders have scaled back new projects amid higher financing

costs , despite strong housing demand . The effects of that decline — namely higher housing costs thanks to a tighter market — will be felt after the last of the apartments that broke ground during the boom open their doors . Policymakers across all levels of government need to act to stem the shortage , housing advocates and experts say . State and federal officials need to significantly spend more on helping low-income families who can ’ t find affordable housing on the market , they argue . Housing advocates have also sought to change local restrictions on what kinds of homes can be built and where . Those rules , known as zoning regulations , effectively limit how many homes can be built and lead to higher housing costs , they argue . Texas ’ largest cities make it relatively easy to build detached single-family homes and allow them in practically every area designated for residential use . But a Texas Tribune analysis shows cities have largely cordoned off those areas from the kinds of denser , cheaper homes that would help them ease their shortage more quickly , like townhomes , duplexes and smaller apartment buildings .

Cities also leave aside comparatively little land to build those kinds of homes or larger apartment buildings . Loosening those rules and allowing more types of housing to be built can help cities add more homes and rein in housing costs , research shows . Doing so has been politically difficult . While a group of housing activists has recently fought for such reforms in Texas , they face resistance from existing homeowners and neighborhood groups that oppose those kinds of changes . It ’ s likely Texas lawmakers will tackle the state ’ s housing affordability crisis when they convene in Austin next year . A key issue will likely be whether the state or cities should make the rules on where homes can be built . Cities should still retain some control over how to address the crisis “ based on the needs of their community ,” Garcia said , but the state can set “ an expectation that every community needs to be pulling their weight .” “ Otherwise , you have some cities who are working in good faith , and then others who just aren ' t ,” Garcia said . https :// www . texastribune . org / 2024 / 10 / 30 / t exas-housi-shortage-report /