Reducing zoning laws could lower real estate prices, Texas state comptroller says

WICHITA FALLS (KFDX/KJTL) — Texas must build more than 300,000 homes to meet updated housing affordability requirements, Texas State Comptroller Glenn Hegar announced Tuesday, Aug. 27.

It’s a crisis that’s been building for years. And while Wichita Falls has maintained a relatively static population of just over 100,000, local developers say the supply-demand imbalance remains significant.

“The costs have made it hugely, hugely unaffordable for the vast majority of people,” said RJ Wachsman Homes President Tanner Wachsman. “There’s a statistic, promoted by the National Association of Homeowners, that says for every $10,000 you add to a home, you’re pricing out that many or more people across the state, across the country.”

According to Hegar, the U.S. is seeing the fastest deterioration in housing affordability in history after years of underinvestment since 2008.

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In the case of Texas, Hegar pointed to high prices and interest rates.

“Texans continue to suffer from high prices and high interest rates that put significant pressure on the cost of borrowing and homeownership, so this report addresses an urgent issue,” Hegar said. “In short, our state, which is generally well-regarded for its low cost of living, is facing downward pressure on housing affordability as our population and demand for housing continue to grow.”

There is currently a shortage of more than 300,000 homes in the Lone Star State, and while Wichita Falls has a reputation for being affordable, Wachsman says that’s not enough.

“The fact that we have the most accessible statistics doesn’t negate the fact that home prices have doubled since 2008 and earlier,” Wachsman said. “So for people trying to… Start their lives… It’s much, much harder to achieve.”

Wachsman said that despite Wichita Falls’ relatively stable population, there is still a need for more homes.

“We were a boom town; there were a lot of houses built, especially in the ’60s and even before, where they were manufactured to meet demand,” he said. “But over time, those houses don’t last forever. Now we’re seeing a lot of those houses falling apart and becoming uninhabitable.”

Between his personal call for action and public concerns, Hegar said the issue of affordability is now in the hands of lawmakers.

“We need to, as a city, as a community, as a state, as a nation, really take a hard look at some of the laws that we’re putting on developers and builders,” Wachsman said. “We can’t continue to increase the regulatory burden because it ends up being passed on to taxpayers and citizens who are trying to get to the top.”

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In his report, Hegar found that housing affordability is at its lowest point nationwide since 1985. What’s more, he said the median home price in Texas rose 40% from 2019 to 2023 — a trend exacerbated by a surge in out-migration.

For more statistics, see Hegar’s Housing Affordability Challenge report.

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