Texas is booming but more families are struggling to keep up with housing costs
The rising price of housing in Texas is a serious threat to the state's continued economic prosperity, and the legislature needs to take action this coming session. That was the message delivered Thursday to the Senate Committee on Local Government.
Texas builds more homes than other states but hundreds of thousands more are still needed, according to a report from the state comptroller's office .
Texas Comptroller Glenn Hegar testified that in many ways, the state is a victim of its own success. As local economies boom, more people are moving here and there isn't enough housing.
"My office will always make note of one of Texas' economic advantages, which has been abundant affordable housing," Hagar said. "However, unfortunately, that positive has been slowly eroding and we now must know that while Texas is more affordable than other parts in our nation, we are not as affordable as we have been in the past."
He said housing affordability is a strong economic indicator providing insight into the overall economic well-being of families, and he has found a growing number of Texas families are struggling.
"Housing costs comprised the largest portion of household budgets in Texas in 2022, about 34% of Texas households were cost-burdened because they were spending 30% or more of their income on housing," Hegar said.
According to the U.S. Department of Housing and Urban Development, housing costs should not exceed 30% of a family's income so they can pay for other living costs.
In Texas, median home prices rose by about 40% between 2019 and 2023, with sharp increases in 2021 and 2022.
Price increases were widespread across Texas metro areas, particularly in smaller metro areas. Brownsville-Harlingen experienced the largest increase during this period, jumping 73%.
Kathy Green, Director of State and Federal Strategy for AARP Texas, told lawmakers it has found that 89% of Texas residents 45 and older prioritize staying in their own home as they get older.
"However, many older Texans reaching retirement age worry about this being a reality," Green said. "Being on a fixed income and concerns about having enough money saved to live out that retirement, comfortably challenge this notion."
Green proposed a number of suggestions for lawmakers to consider in the upcoming legislative session. They include increasing investments in subsidized housing for low-income families, implementing property tax relief programs targeted to low- and middle-income homeowners and renters, and strengthening community land trusts — which can be used to discourage land speculation.
"This issue remains daunting and key to our continued overall economic health," Hegar said. "My office will continue to work with lawmakers to provide support as they work to address this issue and prepare bills for the upcoming legislative session."
