How Texas improved housing affordability in 2025

Housing affordability has been a top concern for Texans in the last few years.

From 2020 to 2024, the income needed to buy a median-priced home rose over 30% to $100,629. Right now, high home prices are a direct result of our state’s housing supply. As of 2025, the state needs an estimated 320,000 additional housing units to meet Texans’ needs.

We take a look at what steps the Texas Legislature made in the 2025 session to ensure that home ownership remains an achievable goal for middle class families across our state.

1.Improving the Rezoning Process for more Housing

HB 24 by Rep. Orr & Sen. Hughes

A 100-year-old statute, known as the “tyrant’s veto,” allowed a minority of property owners to create procedural barriers to zoning changes. Now, after HB 24’s reforms to the tyrant’s veto, neighbors will be protected and city councils will be empowered to develop their communities.

2.Converting Commercial Properties to residential

SB 840 by Sen. Hughes & Rep. Hefner

Allows for the development of housing in areas zoned for commercial, office, retail and warehouse uses in large cities.

3.Allowing Single-Stair Apartments

SB 2835 by Sen. Johnson & Rep. Talarico

Creates a framework for cities to allow the construction of single stair buildings for apartments of up to 24-units.

4.Meeting Market Demands for Smaller Lot Sizes

SB 15 by Sen. Bettencourt & Rep. Gates

Allows developers of newly-platted neighborhoods in larger cities to respond to market demands for smaller lot sizes. This added density allows for more homes to be built with lower land-related costs for interested buyers.

5.Converting Offices to Housing

SB 2477 by Sen. Bettencourt & Rep. Patterson

Reduces regulatory barriers for underutilized office space to be converted to housing, with guidelines and limitations related to parking, infrastructure and traffic studies.

6.Allowing Lower-Cost Homes in Designated Areas

SB 785 By Sen. Flores & Rep. Guillen

Requires municipalities to allow the installation of HUD code compliant manufactured housing in at least one area of the city.

Did you know? Homeownership is the primary way most families build wealth. The median homeowner’s net worth is nearly 40 times that of the median renter, but costs are now at their highest in decades. This is why housing affordability should be a top priority for Texas.

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