Bisnow
By: John Krukowski, June 27, 2024
The “Texas Miracle” that continues to draw new residents and businesses to the state in record numbers is the envy of other states and an economic force to be reckoned with.
But even miracles may need help maintaining their momentum, and Texas’ unprecedented boom is showing some signs of stress, particularly in its housing market. In a worrying development, Texans are confronting a serious lack of affordable housing.
This scarcity is putting homeownership out of reach for many, whether they are newly minted Texans or lifelong residents. In North Texas, a Zillow study found that homebuyers needed an income of at least $121K to comfortably afford a mortgage — an increase of nearly $50K from only four years ago.
One often discussed solution to the problem is the construction of more master-planned communities. Encompassing hundreds and often thousands of acres, these custom-built developments can include a variety of housing types at price points suitable for homebuyers of varying incomes. They can also provide a host of quality-of-life-enhancing amenities like hiking trails and parks.
MPC developers can face resistance from local governments, however, which frequently raise density and other concerns to prevent them from being built. While not limited to Texas, this anti-MPC attitude is preventing much-needed affordable housing of all types from being built in a state bursting at the seams and jeopardizing its growth prospects.
