Article by Cody Miller, GHBA Director of Government Affairs
Every two years, in odd-numbered years, the Texas Legislature meets for six months to pass the state’s budget and new laws for the following two years. Because the legislature doesn’t convene regularly like those in other states, representatives, senators, the governor, and the lieutenant governor face a mad dash to advance their legislative priorities — whether focused on healthcare, infrastructure, education, or other industries affected by state policies.
One issue consistently in the national spotlight and among Lieutenant Governor Dan Patrick’s top priorities is home affordability. The cost of building new homes and purchasing existing ones has risen dramatically since 2020. This increase is due to rising labor and material costs, land prices, and growing government regulations. In fact, 25% of a new home’s price is attributed to regulatory expenses, including impact fees, local authority controls, and complex permitting processes. During the upcoming legislative session, representatives from slower-growth regions are expected to push back against policies that encourage rapid development.
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While the Houston area is expanding, this growth is primarily occurring outside Harris County and the city limits. Instead, surrounding counties like Montgomery, Waller, and Brazoria are experiencing rapid development. County and city officials face a balancing act: meeting infrastructure demands while preserving the rural character of their communities. State law grants counties and cities different powers to regulate land use within unincorporated areas, city limits, and extra-territorial jurisdictions. This variation in authority, combined with ongoing growth in urban and suburban areas, will likely lead to legislative discussions on how counties and cities can manage development more effectively.
The American Dream of homeownership remains strong in Texas. According to the U.S. Census Bureau, the Houston area led the nation in 2023 with over 50,000 single-family homes built, followed closely by the Dallas/Fort Worth area. Texas continues to be an attractive place to build and live. The Texas Association of Builders, the Greater Houston Builders Association, along with other local homebuilding groups, are committed to working with city and county officials to promote smart, attainable growth.
As the 2025 legislative session approaches, policymakers face the challenge of balancing growth with affordability. Addressing the impact of regulations, infrastructure needs, and local resistance to development will be crucial to maintaining homeownership opportunities. Collaboration among state officials, local governments, and industry leaders is key to sustaining the housing market and fostering smart growth. With thoughtful planning and cooperation, Texas can continue to lead the nation in housing opportunities for years to come, ensuring families of all backgrounds can achieve their dream of homeownership.