Texas has seen very strong growth over the past several years. With various corporations, particularly technology companies choosing to expand their presence in cities like Austin, Dallas, Houston, and San Antonio, Texas has seen a boost in income levels and population growth. As a result, home prices and rents have increased significantly, putting a dent in housing affordability.
At the epicenter of the state’s affordability crisis is Austin, which saw outsized growth in population and jobs during the pandemic era. However, regulations and zoning laws inhibited the market’s ability to develop enough housing to meet the excess demand. In response, city officials have begun taking steps to enact reforms.
Austin recently passed legislation to allow single-family homes to be built on smaller lots as part of a slate of land-use reforms meant to help ease the city’s housing affordability crisis. Additionally, the city voted to allow apartment buildings to be built closer to single-family homes and denser development along a planned light-rail line.
Texas is also working to enact legislation that will help spur affordable housing development. The state recently enacted House Bill 1058, which offers investors tax credit relief to promote the building of more affordable homes.
Berkadia financed more than $3.3 billion in affordable housing transactions between 2020 and 2023.
To learn more about Berkadia Affordable Housing’s experience in Texas, connect with an advisor today.