Texas Is Winning in Affordability and Homebuilding: Can Gov. Abbott Keep the Boom Balanced?

Texas continues to set the pace for America’s housing market.

The Realtor.com® State-by-State Housing Report Card gave the Lone Star State a solid A-, recognizing its unmatched new construction activity and relatively healthy affordability. The report—part of the Let America Build campaign—grades states on how well they balance rising demand with sufficient homebuilding.

President Donald Trump recently put pressure on homebuilders to increase construction nationwide, given the issues with construction in the country. In a post on his Truth Social platform in early October, he accused major builders of hoarding lots to prop up prices—likening them to OPEC, which restricts oil output to maintain high prices.

“They’re my friends ... but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD,” Trump wrote. He urged Fannie Mae and Freddie Mac to intervene and “get Big Homebuilders going” to “restore the American Dream.” 

Texas’ results show a housing powerhouse that’s fueling the nation’s growth, though rapid expansion still poses challenges for infrastructure and long-term affordability.

Texas’s “A-” grade explained

Realtor.com’s analysis gave Texas a total score of 71.5, one of the highest in the country. The state’s median listing price reached $370,663 in 2024, paired with a median household income of $73,203. The Realtors Affordability Score came in at 0.61—better than most coastal states and showing that a wide range of listings remain attainable for middle-income households.

Texas dominates national homebuilding. It accounted for 15.3% of all U.S. housing permits in 2024, despite representing about 9.2% of the country’s population—a permit-to-population ratio of 1.9, nearly double the national average. The new construction premium—the price difference between new and existing homes—was just 7.5%, proof that builders are delivering new inventory at prices that help moderate overall costs.

Realtor.com economists point to Texas’ scale, ample land, and builder-friendly policies as key factors behind its continued dominance. While affordability has tightened in some major metros, consistent construction has kept price growth in check relative to other booming regions.

The South’s housing engine

Across the country, the South remains the driving force behind new housing. According to the Realtor.com New Construction Insights report , the median new-home price held at $450,797, while resale prices rose 2.4%, narrowing the national new construction premium to 7.8%—the lowest ever recorded.

The South now leads the nation in both the share of new listings and overall housing affordability, thanks in large part to states like Texas that continue to build at scale. Realtor.com data show that new construction listings in the South are growing faster than anywhere else in the country, helping stabilize prices even as population growth surges.

But again, the pinch is being felt all over.

“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies," says Shannon McGahn, executive vice president and chief advocacy officer at the National Association of Realtors®.

"NAR research shows that the U.S. has faced a persistent housing shortage for more than a decade, driving up prices and limiting options for buyers. Expanding housing supply creates jobs, supports small businesses, and affords families the opportunity to build generational wealth.”

Governor Abbott’s housing and infrastructure agenda

In 2025, Governor Greg Abbott signed three housing-related bills into law aimed at addressing Texas’s housing shortage and improving affordability.

“Housing affordability is one of the key issues on the minds of Texans today,” Abbott said in a statement. “We have taken significant steps to make homeownership more attainable. Thank you to the lawmakers and housing advocates who continue working to make Texas the best place to live, work, and raise a family.”

Senate Bill 15 limits the ability of cities to require large minimum lot sizes for homes built on unplatted tracts of five acres or more, allowing for smaller and denser development. For small lots, it restricts municipalities from imposing certain setback requirements, covered parking mandates, multiple parking spaces, off-site parking, permeable surface minimums exceeding 30%, ceiling height minimums, maximum building bulk limits, or wall articulation requirements.

Senate Bill 840 permits mixed-use and multifamily development in areas currently zoned for office, retail, or warehouse use, opening additional opportunities for housing construction in large cities. The bill also restricts cities from imposing specific fees and requirements intended to reduce costs and streamline development.

House Bill 24 modifies the state’s valid petition process—sometimes referred to as the “tyrant’s veto”—to make zoning changes that allow for more residential development easier to approve, with the goal of increasing housing supply and density.

This article was produced with editorial input from Dina Sartore-Bodo and Gabriella Iannetta.