Crisis of rising housing costs threatens Texas economic miracle. What can we do? | Opinion

As a former mayor of a small city and a leader at one of the largest grassroots organizations across Texas, we believe that the state is at a crossroads on housing policy and that time is running out for us to act.

Vice President JD Vance thinks so, too, arguing that the “reason for the elevated [housing] costs comes down to zoning” and that costs could come down if we were “a little bit smarter about our local zoning rules.”

He’s not the only one — Elon Musk reaffirmed Vance’s sentiment: “We have made large construction projects almost illegal” adding “…NIMBYism is a big problem.”

The crisis of skyrocketing costs and housing unaffordability, once a problem for the coasts, now threatens the very foundation of the Texas Miracle. As home prices continue to soar, our neighbors grow increasingly frustrated: More than eight out of 10 Dallas-Fort Worth and suburban residents say housing affordability is a major problem, according to a Texas Association of Business poll.

The good news is that Gov. Greg Abbott specifically mentioned in his State of the State address that the state should “make it easier to build, slash regulations, and speed up permitting.” Lt. Gov. Dan Patrick and House Speaker Dustin Burrows have prioritized bills demonstrating their commitment to removing barriers to the American Dream of home ownership. The bad news is that we risk losing the competitive advantage that made our state a beacon for families business and economic opportunity if we fail to act, and that will undermine the ability of future generations to invest in the communities we cherish.

TEXAS HOUSING CRISIS PREVENTS INVESTMENT, WEALTH GENERATION

When one of the authors of this piece, John Huffman, moved to Southlake from the East Coast in 2008, he and his wife bought a home for $400,000. Almost 20 years older, it’s is worth over a million dollars. Texas Comptroller Glenn Hegar reported that home prices rose 40% between 2019 and 2023. That kind of appreciation might seem like a success story for a few, but it highlights a growing problem for the Texan majority: Our kids, our parents and small-business owners.

The rising costs are not only denying Texans of their God-given property rights, they are also locking young families out of the market, preventing them from building equity and putting down roots in the communities they love. If we don’t address this now, Texas will become a place where only homeowners who purchased decades ago can afford to buy a home, forcing the middle class, our kids and our grandkids into a lifetime of renting.

A recent Texas Metropolitan Blueprint report crafted by organizations including the George W. Bush Institute at Southern Methodist University argues that “outdated land-use policies, rising housing costs, and infrastructure strains… could threaten the state’s future.” A key driver of Texas’ economic success has been its relatively low cost of living and housing affordability. Families and businesses have flocked here, attracted by the lower cost of living and the promise of homeownership.

But as housing costs rise unchecked, we are losing that edge. States such as Tennessee and South Carolina are actively positioning themselves as the next Texas, luring businesses and residents with lower housing costs and fewer regulatory barriers. One company, Placer Refinery, moved to Texas only to soon pivot to Louisiana, citing high housing costs for moving away. If we want to remain the best place to live and work, we must take action to ensure that housing remains accessible to those who contribute to our economy and communities.

ZONING, LAND-USE REGULATIONS AND PROPERTY RIGHTS

Zoning and land-use regulations are designed to protect communities, but in many recent cases, they have done the opposite, driving up costs and limiting housing supply. Many Texas cities have adopted restrictive zoning laws that artificially constrain the market, preventing property owners from developing their land in ways that could ease the housing crisis.

Two things can be true at once: Zoning is a social good and has helped create our beautiful communities, but it also restricts private property rights. There is a tension there, and because Texans pride ourselves on respecting private property rights, we must keep wrestling with that tension.

Fortunately, Patrick has prioritized starter homes in new neighborhoods on undeveloped land of 5 acres or more. Similarly, Speaker Burrows prioritized legislation streamlining the process to build subdivisions of missing middle housing. We must encourage good zoning regulations, but the pendulum has swung too far in the opposite direction in favor of NIMBYism, or a “not in my backyard” mentality. We need to restore the balance, respecting private-property rights while allowing for thoughtful, market-driven development that can meet the demand for homes.

Our public schools are already feeling the effects of declining enrollment. As fewer families can afford to move into our communities, school districts are seeing shrinking student populations, which directly affects state funding. Texas’ school finance system is based on average daily attendance, meaning fewer students translate into fewer resources for schools. If we fail to provide housing options that accommodate working- and middle-class families, we will see a downward spiral in school funding, teacher retention and educational quality.

By encouraging the development of “missing middle” housing — moderate-lot homes in new neighborhoods, and other high-quality starter home products — we can ensure that our communities remain vibrant. As Utah Gov. Spencer Cox once said: We want our kids to live by us not with us.

This is not about government mandates or one-size-fits-all solutions. It’s about allowing Texas to continue to be what it has always been: a place where hard work and opportunity go hand in hand.