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Is Texas Finally Fixing its Housing Crisis? A Record Number of New Apartments Could Help.

Leslie Rangel

Leslie Rangel

— 2 min read
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Is Texas Finally Fixing its Housing Crisis? A Record Number of New Apartments Could Help.
AUSTIN, TEXAS - MARCH 19: In an aerial view, apartments are seen undergoing construction downtown on March 19, 2024 in Austin, Texas. From peaking in 2022, home prices and apartment rents in Austin, Texas, have declined more than any other city in the country in 2024. While Austin remains ranked as the 10th-largest city in the U.S., the city is now leading a national property cool-down. From 2020 through 2022, Austin led at the forefront of rapid economic growth, with major companies such as Tesla and Oracle arriving. Austin’s recent downswing indicates that various migration patterns, once fueled by the COVID-19 pandemic, continue to fade as the country slowly returns to pre-pandemic levels. (Photo by Brandon Bell/Getty Images)

Four Texas metro areas are in the top 20 cities in the country for most new apartments under construction. Dallas, Austin, Houston, and San Antonio are booming, apparently. And before you start rolling your eyes about all the new people moving here (Californians), it’s important to know that there’s not even enough homes for people who already live here, so this could help.

Housing experts say Texas is currently 300,000 units short of adequately fitting the current population. The good news is, the solution is —wait for it — building more homes! Researchers say when you have more housing options, rent prices tend to drop, which is a good thing because they spiked during the pandemic. In 2022, cities like Austin were paying to the tune of about $2,900 a month on average. Now that number is closer to $1,500 according to a KUT report. Not exactly affordable, but it’s certainly lower.

On the nationwide list, first reported in Newsweek, Dallas was ranked second for most new apartments in the country, with nearly 33,000 new units estimated to be done by the end of 2024. (New York City took first, and, yes, we’re also wondering where they found more space to build). Austin came in third with around 21,500 units estimated for completion; Houston came in sixth place with around 18,300 new units; and finally San Antonio took the 15th spot with about 9,600 new apartments. Texas has a total area of 268,820 square miles, so there’s plenty of room.

While the number of new apartments built in 2024 is the highest the country has ever seen, according to RentCafe, it’s good to remember that — despite more home options coming online — Texans are struggling to make mortgage and rent payments. In Houston and Dallas-Fort Worth, a family needs to make more than $100,000 to buy an average home, and in Austin, that income needs to go up to $140,000.

Still, Texans can revel in the fact that the cost of living is eight percent lower here than in the rest of the country.

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