July 4, 2025

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.

Austin, Texas – The Texas Legislature has passed a series of pro-housing bills aimed at addressing the state’s ongoing housing affordability crisis amid a significant rise in home prices. The legislative session resulted in new laws designed to expedite housing construction and reform local zoning regulations, making it easier for municipalities to approve new housing developments.

The average home price in the United States reached $440,913 in May 2025, marking an increase of approximately $140,000 from five years earlier. While housing affordability issues were initially confined to coastal cities, they have now expanded throughout the country, including Texas, where increasing population and demand for housing have intensified the challenge. The recent legislative reforms seek to tackle this critical issue by promoting more accessible housing options statewide.

One of the key pieces of legislation, Senate Bill 840, mandates municipalities to allow “missing-middle housing,” which includes duplexes, triplexes, and townhomes, particularly in areas previously resistant to such developments. This change aims to facilitate affordable housing construction near commercial zones, echoing the development patterns prior to the 1960s.

In an effort to further reduce land costs, Senate Bill 15 prohibits cities from imposing lot sizes greater than 3,000 square feet for new subdivisions. This law encourages the construction of smaller homes, making housing more affordable for the average Texan. Additionally, Senate Bill 2477 simplifies the process for converting office spaces into residential units by eliminating unnecessary regulations, such as traffic studies and complex zoning changes.

Senate Bill 2835 allows for the construction of apartment buildings up to six stories tall, requiring only one staircase, which in turn reduces overall building costs by an estimated 6% to 13%. These measures are aimed directly at alleviating the growing pressure on housing availability as Texas experiences rapid population growth.

House Bill 24 addresses a legislative loophole that previously enabled small groups of residents to block housing projects through protests. The new law increases the petition threshold required to challenge housing developments from 20% to 60%, making it more challenging for a minority of residents to halt projects that could benefit the broader community.

Amid these changes, Texas is also planning to augment the state’s homestead exemption, potentially providing tax relief for homeowners. This initiative is anticipated to have a positive impact on home affordability in the long term.

In contrast to Texas’s proactive approach, Connecticut recently vetoed a similar set of reforms aimed at improving housing affordability, reflecting concerns about local control and community pushback against new developments. The contrasting approaches highlight Texas’s commitment to tackling the growing housing crisis while balancing community interests.

Moreover, Bryan-College Station’s Habitat for Humanity has voiced support for House Bill 4505, which would establish a statewide revolving loan fund dedicated to nonprofit housing developers focused on creating affordable homes. This fund aims to address the upfront costs associated with construction, particularly for families earning between 30% and 80% of the area median income. The expected construction through this initiative is projected to yield approximately 350 new homes annually, along with enhanced infrastructure development in underserved regions.

Overall, these developments signal a critical shift in Texas’s housing policy, aimed at increasing the availability of affordable housing options for its rapidly growing population. The legislative reforms reflect a concerted effort to streamline housing construction and reduce obstacles that have long made it difficult for residents to secure affordable homes. As the state grapples with rising housing costs, these legislative measures may play an essential role in ensuring that Texas remains viable for its residents.

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Author: STAFF HERE COLLEGE WRITER

The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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