A Deeper Look at Texas Housing Gap: The Hidden Challenges and Emerging Solutions
- Johnny Scheff
- Jul 18
- 6 min read
In the heart of one of America’s fastest-growing states lies a pressing, often overlooked crisis: affordable housing. As Texas attracts new residents by the millions, housing costs have surged far beyond what many working families can bear. The result? A growing population of residents who are cost-burdened, displaced, or stuck in substandard living conditions.
Table of Contents
A Hidden Challenge in a Growing State
According to the U.S. Department of Housing and Urban Development (HUD), families who spend more than 30% of their income on housing are considered "cost-burdened." In 2023, nearly 50% of renters in the Houston metro area fell into this category, with other major cities like Austin and Dallas not far behind. For too many Texans, the dream of a stable home is slipping away. (1)
What’s Causing the Affordable Housing Crisis in Texas?
Several factors converge to create a perfect storm:
Population Growth: Texas saw a population increase of over 470,000 people in 2023 alone (U.S. Census Bureau). More people mean more demand for housing, especially in urban centers. (2)
Rising Land and Construction Costs: Inflation in material costs and labor shortages have driven up the price of building new homes.
Restrictive Zoning Laws: In many cities, zoning regulations prohibit the construction of multi-family units or accessory dwellings in large swaths of land, limiting density and affordability.
Inadequate Public Investment: Texas invests less per capita in affordable housing programs compared to states like California and New York, despite its rapid urbanization.
Gentrification: Long-time residents in historically affordable neighborhoods are being priced out by upscale developments and rising property taxes.
Who Is Most Affected?
A Deeper Look at Texas Housing Gap
While the crisis touches people across income brackets, the brunt is borne by:
Low- to Moderate-Income Families: Service workers, teachers, nurses, and other essential staff often can’t afford to live near their workplaces.
Seniors on Fixed Incomes: Many elderly residents are being pushed out of homes they’ve lived in for decades.
Single Parents and Young Adults: Without generational wealth or housing support, these groups face high barriers to stable living situations.
High-Demand Neighborhoods: In fast-growing urban and suburban areas, limited housing supply and rising development pressures are making it increasingly difficult for longtime residents to stay in their communities. Without safeguards or affordable options, displacement is becoming more common across income groups.
The Bigger Picture: A National Housing Crisis
While Texas faces unique circumstances, the affordable housing crisis is not limited to one state; it’s a nationwide emergency.
According to the National Low Income Housing Coalition, the U.S. is short over 7.3 million affordable and available rental homes for extremely low-income households. This shortage affects every state and metro area, with rising rents, stagnant wages, and restrictive zoning policies fueling displacement and homelessness across the country. (4)
In 2023, the Harvard Joint Center for Housing Studies reported that more than 22 million U.S. households are now spending over 30% of their income on housing, with 12 million considered “severely cost-burdened” (spending over 50%). (3)
The crisis has roots in decades of underinvestment in public housing, rising construction costs, and a lack of coordinated federal strategy. And while efforts like the Housing Choice Voucher Program and Low-Income Housing Tax Credits (LIHTC) offer relief, demand far exceeds supply.
What is happening in Texas mirrors what’s happening from California to Florida: more Americans are being priced out of the communities they call home. Texas, however, has a chance to become a leader in reversing this trend through bold, community-driven action.
How Texas Compares to Other States in the Affordable Housing Crisis
Texas is deeply affected by the national crisis, but its housing dynamics are shaped by distinct factors:
High Growth, Low Affordability Catch-Up: Unlike states with land constraints like California, Texas has land but faces zoning restrictions and inconsistent political will to embrace density.
Limited State-Level Support: Texas has only 29 affordable and available homes per 100 extremely low-income renter households (NLIHC 2023) below the national average (36 affordable and available homes per every 100 extremely low-income renter households) (4). In comparison:
California: 24 per 100
New York: 37 per 100
Weaker Tenant Protections: Texas has no rent control, limited eviction protections, and no inclusionary zoning mandates.
Rapid Price Escalation: Austin’s rents jumped 30% between 2021–2023; similar surges hit Houston and Dallas.
Texas is quickly catching up to the most unaffordable states in terms of housing stress without the policy safety nets many of those states have begun implementing.
Government & Policy Gaps
State and local governments have struggled to keep pace with the rising demand:
Delayed Permits & Bureaucracy: Even when developers are ready to build, projects are often held up by red tape and outdated approval systems.
Lack of Rent Control: Texas law prohibits local rent control, allowing prices to soar unchecked.
Inconsistent Funding: Affordable housing initiatives often rely on federal grants that fluctuate annually and are insufficient for long-term planning.
The Rise of the Pro-Housing Movement in Texas
In recent years, a grassroots response known as the “pro-housing” or YIMBY (Yes In My Backyard) movement has gained momentum. Unlike opposition groups who resist development, pro-housing advocates champion inclusive, responsible urban growth.
Across cities like Austin and Houston, these groups push for:
Zoning reform to allow duplexes, ADUs, and multi-family housing.
Streamlined approval processes to accelerate construction.
Incentives for mixed-income and transit-oriented developments.
One example is the "Austin Housing Coalition," which helped pass policies promoting affordable units near public transportation. These efforts reflect a growing recognition that housing is infrastructure and essential to economic and social well-being.
Innovative Solutions Emerging Across the State
Modular & Prefabricated Homes: Faster, more affordable to build, and increasingly accepted by municipalities.
Community Land Trusts (CLTs): Nonprofits buy land and lease it to homeowners, stabilizing neighborhoods and preventing speculation.
Public-Private Partnerships: Developers and municipalities collaborate to build affordable housing with long-term affordability guarantees.
Mixed-Income Housing: Projects that blend market-rate and subsidized units help normalize diverse living arrangements and reduce stigma.
What Can Be Done Next?
Real change requires a mix of policy reform, community advocacy, and private-sector involvement. Here are key actions that governments, developers, nonprofits, and citizens alike can take to address the housing crisis:
Expand Housing Vouchers: Support HUD’s Section 8 programs and ensure local landlords are incentivized to accept them. (1)
Fund Permanent Supportive Housing: Especially for people experiencing chronic homelessness or mental health challenges.
Educate the Public: Address NIMBY (Not In My Backyard) sentiments with facts, empathy, and community engagement.
Working to Make an Impact
At Gemstone Management, we believe property consulting is about more than maximizing occupancy, it’s about building a better, more equitable community.
We’ve contributed to 15 Govt. Projects ranging from public housing renovations to mixed-income communities designed for long-term stability and compliance with federal housing standards.
Our mission is to empower communities with safe, sustainable, and affordable homes, not just for today, but for generations to come.
🔗 Learn more at Gemstone Management
Final Thoughts
As we took a deeper look at the Texas housing gap, we concluded that the affordable housing crisis in Texas is complex, but it is not unsolvable. With rising awareness, bold policy moves, and committed partners across sectors, we can reverse the trend and restore the promise of housing as a human right. Whether through advocacy, development, or simply staying informed, we all have a role to play in building a stronger, more inclusive Texas.
Get in touch to learn how Gemstone can support your next housing project, apartment hunt or provide insights into sustainable multifamily development.
Contact Us or email at info@gemstonemgt.com
