Build, baby, build: Texas needs houses.

Texas continues to experience significant population growth as Americans flee other states for new opportunities and, historically, a lower cost of living. According to the Texas Comptroller’s office, approximately 225,000 people moved to Texas between 2021 and 2022, but homebuilding has not kept pace with the influx of new residents. The increased demand for housing — combined with factors such as high interest rates, high property taxes, inflation and rising insurance costs — have left Texas with a housing deficit of 306,000 units, second only to California. Texas lawmakers are likely to tackle housing affordability during the 2025 legislative session. 

Just because a family cannot afford or qualify for a mortgage does not mean they should not be able to live in a home they are proud of in a community where they can afford to rent.

To improve Texans’ living situations, it’s just as important to increase the supply of single-family rental homes as it is to increase the supply of homes for purchase. We need options for everyone. 

Many who have testified before Texas Senate and House committees during the interim have emphasized the importance of increasing the housing supply for both buyers and renters. Some have zeroed in on several potential solutions: easing zoning regulations and minimum lot size requirements, streamlining local permitting processes and allowing for easier conversion of commercial property into residential. (The comptroller’s report also outlined some of these options.)

Meanwhile, calls to limit corporate purchases of single-family homes to rent miss the mark. According to a 2021 report by the National Association of Realtors, corporate investors bought 28% of homes sold that year in Texas — more than twice the national average. But corporate investors in single-family homes range from large companies to small mom-and-pops. And according to legislative testimony, home purchases by corporate investors of every size have not exceeded 20% of the total.

In reality, to generate much-needed housing at scale,Texas needs corporate investment. It’s up to our elected leaders to clear the way by eliminating barriers to supply and creating greater housing options and accessibility for all Texans.

Charles Blain, a frequent contributor to the Houston Chronicle, researches and writes about policies that promote opportunity and social mobility.