Affordability is the Problem. Less Government is the Solution. 

Affordability is the number one issue in Texas, and it isn’t even close.  

Numerous polls, released both before and after Election Day, show the Texas electorate alarmed with the cost of gas, groceries, and rent—as well as everything else. One poll in particular, conducted by the University of Texas and the Texas Politics Project, illustrates the unease, finding that: “More than half of Texans reported being ‘very concerned’ about ‘the price of food and consumer goods’ (62%), ‘the cost of healthcare’ (60%), ‘the price of gasoline and energy’ (61%), and ‘the cost of housing’ (52%).” Based on Tuesday’s local proposition demolition, wherein voters “rejected about 75 percent of the property tax-backed bonds and voter-approval tax rate elections (VATREs),” one might reasonably add ‘the cost of government’ to that list too. 

Prominent among voters’ concerns is the cost of housing, and a recent report from the Texas Demographic Center (TDC) hints at the reason why.  

According to TDC’s analysis, the average home value in Texas surged from $173,414 in 2013 to $296,900 in 2023, representing a decade-long increase of 71%. Meanwhile, over the same period, median household income inched up from $67,926 to $75,780, or about 12%. Hence, home values are appreciating quickly but Texans’ incomes are not, and that phenomenon is preventing a great many Texans from realizing the American Dream.  

While the escalation in home prices is not due to any single factor, one cause appears more responsible than the others: poor public policy.  

There are at least 2 major ways that housing policy today fails consumers. First, it imposes too many costly regulatory burdens on the housing industry, thereby exploding costs and creating barriers to entry. Second, it extracts too much from property taxpayers, leaving many in the owner class in dire straits.  

Exploring the regulatory issue further, the weight of federal, state, and local government regulations is heavy. In June 2026, the National Association of Home Builders (NAHB) observed that, for “the current average price ($499,500) of a new home, regulation accounts for $131,734 of the final house price.” This added expense, which equates to 26% of the total, comes both during property development, i.e., zoning approval, impact fees, land dedicated to the government, as well as during construction, i.e., building code changes, delays, and architectural design standards beyond the ordinary. And while a builder absorbs the initial regulatory cost, that tab is ultimately paid for by the consumer at closing. That is, if and when they can afford to finally purchase a home. 

To put a finer point on the barriers that these regulations present, consider a 2025 NAHB report which found that, in Texas, a $1,000 increase in the cost of a median priced home “could price out over 11,000 households.” Given how common it is for federal, state, and local policymakers to add new rules and requirements, it is easy to envision how quickly $1,000 in new costs accumulate and what this might mean for the marketplace.  

When it comes to the tax front, the situation is equally problematic. One recent report observes that Texas is home to nearly 5,000 local property taxing units, all of whom collectively levied $89.4 billion in property taxes in 2025. If that total were spread equally among each of Texas’ almost 11 million households, then each would be responsible for an $8,100 tax burden annually.  

The property tax is not only large, but it is also rising fast. One 2026 study notes that: “Statewide, property taxes have risen approximately 181% over the past two decades, while the combined rate of population and inflation has risen roughly 100%.” Unlike the embedded regulatory upfront stemming from development and construction, the burden of property tax is a recurring financial obligation, which seems to increase year-after-year with no real stoppage. This dynamic requires families to not only consider whether they can afford a home purchase, but also to prognosticate as to whether their future income will be enough to keep up with the tax bills.  

Clearly, overregulation and over-taxation are making the housing market worse from a consumer perspective; but the affordability problems caused by these two policy areas aren’t unsolvable. In fact, quite the opposite. 

Looking ahead, the 90th Texas Legislature has an incredible opportunity to improve housing affordability and accessibility, which is clearly on the minds of voters. And there are many ways to go about doing it too.  

Obvious opportunities to make real change include everything from “Reducing the [regulatory] friction associated with land-use rules, platting, site-plan review, parking mandates, and design requirements” to “streamlining permitting and development approvals, and addressing the local fees” to “eliminating school M&O property tax” using state surplus tax dollars. Plus, much, much more. 

By taking bold action to cut red tape and taxes dramatically, the next Texas Legislature will position the housing market, economy, and consumers in a much better way. Perhaps more importantly, they will give the electorate exactly what they’re asking for—help affording the basics.