T
exas' housing shortage continues to worsen, with rising prices and rents driven by a limited supply of homes. Despite being the country's top home-building state, Texas still struggles to meet demand, which is fueled by economic growth and population influx. The shortage has pushed up housing costs in major metropolitan areas like Houston, Dallas-Fort Worth, and San Antonio.

    According to Up For Growth, Texas had a shortfall of around 320,000 homes in 2022, an increase from the previous year's deficit. David Garcia, policy director at Up For Growth, notes that while Texas has been building extensively, it often can't keep pace with both in-state demand and out-of-state migration.

    The housing shortage is not unique to Texas; a national deficit has driven up costs across the country. Up For Growth estimates 3.8 million homes are needed to improve affordability. While some cities have expanded construction, particularly of detached single-family homes in suburban areas, high population growth has revealed the limits of outward expansion as a solution.

    The Austin metro area has seen an apartment-building surge, reducing its shortfall by nearly a third and driving down rents for 16 months. However, the region still needs 24,000 homes to meet demand. Advocates are urging state and local governments to ease zoning restrictions that limit denser housing options, such as townhomes and smaller apartment buildings, which could help increase supply and lower costs.