Texas Takes Major Steps to Combat Housing Affordability Crisis

News Summary

In response to soaring home prices, Texas lawmakers have introduced several significant bills aimed at addressing the housing affordability crisis. Notable legislation includes provisions for ‘missing-middle housing’ and limitations on lot sizes, which are expected to widen the variety of affordable housing options. Additional bills aim to streamline housing project approvals and support nonprofit housing developers. As other states lag behind, Texas is setting an example for sustainable housing reform amidst a rapidly growing population.

Texas Takes Big Steps in Fighting Housing Affordability Crisis

As the vibrant city of Austin continues to welcome an influx of new residents, the Texas Legislature has put its foot down and rolled out a series of pro-housing bills to tackle the growing housing affordability crisis. With average home prices in the U.S. soaring to about $440,913 as of May 2025—marking a staggering rise of around $140,000 over the last five years—the time for action has certainly come!

Changing the Game for Home Builders

During the recent legislative session, lawmakers shifted gears from previously restrictive local regulations to create a friendlier environment for housing development. Senator Bill 840 is leading the charge, requiring cities to permit what they call “missing-middle housing”—think duplexes, triplexes, and cozy little townhomes. This is huge news for those clamoring for more affordable options, as it means greater accessibility to affordable housing near bustling commercial areas!

The intention behind this bill is to revive some good old-fashioned development patterns reminiscent of pre-1960s living, making communities more diverse and livable. With the demand skyrocketing, it’s about time Texas moves to welcome a variety of housing types, offering options for different budgets.

Loosening the Reins on Lot Sizes

Then there’s Senate Bill 15, which is aiming to lighten the load on new subdivisions by prohibiting cities from enforcing lot sizes larger than 3,000 square feet. This change is designed to lower land costs and facilitate the creation of smaller, more affordable homes. It’s all about making sure homes are within reach for a greater number of Texans!

SB 2477 is also catching attention—it enables easier conversions of office spaces into residential units. By cutting through the bureaucratic clutter like unnecessary traffic studies and zoning changes, this bill is all set to breathe new life into underutilized spaces.

Building Smarter, Not Harder

With Senate Bill 2835, Texas is making sure we can build better and cheaper. This law permits the construction of apartment buildings up to six stories tall with just one staircase. Yes, you read that right! This could cut down building costs by approximately 6% to 13%. Everyone wins as this encourages more affordable living options for families and individuals!

Streamlined Protests and Funding Opportunities

20% to a whopping 60%. This measure is intended to facilitate the swift execution of housing developments, which we all know are drastically needed.

Meanwhile, the state is also looking at increasing the homestead exemption, which could offer some much-needed tax relief for homeowners struggling with rising costs. And in a bid to provide support for nonprofit housing developers, Habitat for Humanity in Bryan-College Station is advocating for House Bill 4505. This bill would set up a statewide revolving loan fund to address upfront construction costs for affordable homes. Families earning between 30% and 80% of the area median income could benefit immensely from this, potentially leading to the construction of approximately 350 homes per year.

A National Discussion

As Texas boldly steps forward with these reforms, other states may find themselves looking at similar measures. Over in Connecticut, lawmakers recently vetoed a set of reforms intended to improve housing affordability. Texas, on the other hand, is setting the bar high by prioritizing housing availability as its population skyrockets—an effort both needed and long overdue.

The winds of change are blowing across Texas, and it’s clear that lawmakers are determined to ensure that residents don’t just have a roof over their heads, but a home they can afford. With exciting new laws and reforms taking shape, the future of housing in Texas is looking bright!

Deeper Dive: News & Info About This Topic

• Community Impact: Texans Will Face Higher Bar to Oppose Housing Development Under New Law
• Forbes: Texas Delivers on Housing Reforms, Connecticut Stumbles
• Express News: Texas Housing Laws in Legislature
• KBTX: Texas Bill Would Create Revolving Fund Boosting Affordable Housing Access
• Dallas Observer: Texas Squatters Bill Could Have Been Poison for Renters
• Wikipedia: Housing Affordability
• Google Search: Texas housing legislation
• Google Scholar: Texas housing laws
• Encyclopedia Britannica: Housing
• Google News: Texas housing reforms