Texas’s high home prices and rents have concerned the state’s leaders. In a report titled “The Housing Affordability Challenge,” Glenn Hegar, Texas Comptroller of Public Accounts, says housing affordability is declining due to the increasing population and demand for housing.
He said Texas needs an estimated 306,000 additional homes to address this challenge.
Nine out of 10 Texans feel there is a housing affordability problem where they live, according to a poll conducted by the University of Houston and Texas Southern University, with 53% of Latino and 50% of Black respondents compared to 39% of white Texans, agreeing.
“Our city has long been known for its affordability, but without creating more housing inventory and expanding partnerships, we risk losing that advantage for the average resident.”
– Tiffany Thomas, Houston City Councilwoman (District F)
What the report found
The report says Texas’ median home prices rose by 40% between 2019 and 2023, beginning in 2020, due to more telework opportunities, large-scale domestic migration, unemployment payments, low mortgage rates, and a surging stock market. Texas fell short of 306,000 homes last year, and a NAR analysis says the greatest shortage was found in homes that middle-income buyers can afford. Moreover, the average homeowners’ insurance rates have increased in the state recently, which has also impacted affordability.
The state may be divided on several issues, but there has been significant bipartisan support for building more housing to alleviate the affordability crisis and for relaxing zoning regulations. The report says opponents of zoning argue that they increase home prices and rents as they limit “housing development in areas where people most want to live.” Some also say they reinforce racial and class segregation.
What about Houston?
In the Houston-Pasadena-The Woodlands metropolitan area, median home prices saw a 34.7% increase, from $245,000 in 2019 to $330,000 in 2023.
“Housing affordability is a pressing issue both nationally and here in Houston,” said Houston City Councilwoman Dr. Tiffany Thomas (District F). “Our city has long been known for its affordability, but without creating more housing inventory and expanding partnerships, we risk losing that advantage for the average resident.”
Reaching financial freedom through homeownership can prove to be challenging for the Black population in Houston, and organizations trying to address the issue have come up with solutions. The Harris County Homeownership Collaborative’s Own the HOU initiative, in partnership with the Houston Housing and Community Development Department, Fifth Ward Community Redevelopment Corporation, Houston Community Land Trust, and the Harris County Community Services Department, aims to close the homeownership gap for people of color.
Laura Jaramillo, executive director of the Houston office of Local Initiatives Support Corporation, reports that through this program, about 2,300 new households were created and over 260 homes preserved.
However, more work is needed. The 2024 State of Housing report says that the number of Black and white homeowners was lower than Asian and Hispanic homeowners from 2010 to 2022. However, Black households increased by over 17,000 in Harris County during that time but decreased by 6,257 in the city of Houston.
Houston natives Kevan and Ayesha Shelton, who launched an initiative to assist Black Men to Buy Houses last year, say working with a knowledgeable real estate agent can benefit first-time home buyers.
“Make sure that someone actually speaks to the needs that you have and helps you find what you’re looking for: what programs are available, whether that be loan programs or down payment assistance, and also have a good ear to the ground on what homes opportunities are available in the city,” Ayesha said.
