Texas is facing a housing affordability crisis. Nine out of ten Texans consider housing affordability a problem where they live, and the Texas Comptroller has identified a lack of housing at price points affordable to middle and lower-income earners as the core issue.
That’s why the Goldwater Institute is joining a coalition of housing reform advocates, led by Texans for Reasonable Solutions, that’s working to develop innovative solutions to preserve the American dream of homeownership for all Texans.
The key is increasing the supply of “missing middle” housing—those diverse housing options like townhomes, duplexes, and smaller single-family homes that bridge the gap between expensive single-family homes and high-rise apartments. Building more housing has a proven effect: studies show it can decrease surrounding home and rent prices by as much as 6%. And Texans are ready for change: 75% support allowing apartments near transit or job centers, and 71% favor converting commercial buildings to housing.
During the upcoming 89th Legislative Session, Texas has a real opportunity to address this crisis. Here are some key proposals, including several important bills, that deserve serious consideration:
- Expanding Mixed-Use and Residential Zoning: Imagine a Texas where housing can be built in areas zoned for commercial, industrial, or mixed use without requiring a new commercial zoning change. This mirrors Florida’s successful “Live Local Act”—a law that has spurred the development of thousands of new housing units. Crucially, the concept aligns with SB 840, authored by Senator Bryan Hughes, which aims to streamline municipal and county regulations for multifamily and mixed-use residential development projects, including the conversion of commercial buildings. This approach not only increases supply, but can also stabilize or even decrease rents in lower-income areas.
- Converting Underutilized Office Buildings: Texas cities like Austin, Houston, and Dallas have high office vacancy rates. Converting these empty spaces into residential units offers a smart solution to two problems at once. This strategy has proven successful in other states and can, when paired with tax abatements for these conversions, further incentivize development. Again, SB 840 plays a crucial role, specifically addressing the conversion of commercial buildings to mixed-use and multifamily residential occupancy.
- Empowering Landowners on Larger Properties: Allowing landowners with five or more acres to vote to approve smaller lot sizes than what the municipality dictates can significantly increase housing supply. Houston’s experience demonstrates the positive impact of this approach: after reducing minimum lot sizes, the city saw a 40% increase in housing supply and a 20% decrease in prices.
- Restoring Property Rights and Streamlining Zoning Changes: Current Texas law allows a small minority of neighbors to effectively veto zoning changes, creating bureaucratic delays and driving up housing costs. Reforming this process to require a higher threshold of opposition and a simpler city council override would empower property owners and streamline development. SB 844, also sponsored by Senator Hughes, directly addresses this issue by reforming procedures for changes to zoning regulations or district boundaries, which is vital for facilitating needed housing development. Furthermore, SB 854, sponsored by Senator Mayes Middleton, offers another avenue for increasing housing options by making it easier to build housing on land owned by faith-based organizations.
These proposals offer a common-sense, market-based approach to tackling Texas’s housing affordability challenges. They empower individuals, encourage responsible development, and ultimately make the dream of homeownership attainable for more Texans.
Jen Springman is the Coalitions Manager at the Goldwater Institute, where she works to build and strengthen strategic partnerships to assist in advancing Goldwater’s national policy initiatives.
