- Texas passed new housing laws, including Senate Bill 840, which allows owners of offices, shopping centers, and warehouses to redevelop properties into apartments or mixed-use complexes with residences.
- At least 8,400 apartments have been enabled by the new law since it took effect on Sept. 1, according to a tally by a bipartisan coalition that supported the bill.
- Resistance from homeowners and cities in North Texas is emerging against these developments, as they attempt to prevent such projects.
- Limiting apartment construction could mean fewer housing opportunities in some of Texas's fastest-growing economies, particularly for those who cannot afford to buy often pricey homes.
- Stricter building codes and design standards have been implemented by a group of cities across the Dallas-Fort Worth region to curb housing development under the new law.
- Affordable housing construction is being aided by the law, with about 1,600 units identified for households making less than an area’s typical income.
Texas housing laws, particularly Senate Bill 840, have enabled the construction of at least 8,400 new apartments since September 1. This legislation allows the redevelopment of commercial properties into residential units, addressing the housing shortage in rapidly growing areas.
However, resistance from suburban homeowners and cities complicates these growth efforts. Many municipalities in the Dallas-Fort Worth region have implemented stricter building codes and design standards to limit new developments, arguing that they want to maintain the character of their neighborhoods.5
Proponents of the law argue that limiting apartment construction restricts housing opportunities for low-income households, particularly in areas where home prices are rising. “If you don’t have housing availability at various price points, your economy is going to stagnate,” said Linda McMahon, executive director of the Dallas Economic Development Corporation.4
The law has also facilitated the construction of approximately 1,600 affordable units for households earning less than the area’s typical income, according to a coalition supporting the bill. “One of our contentions has always been that it would be easier to get more affordable housing on the ground as a result of this bill,” stated Brennan Griffin, senior deputy director at Texas Appleseed.6
Despite the challenges, advocates believe the law is a significant step towards addressing Texas's housing crisis, with Ed Pinto from the American Enterprise Institute noting, “Texas passed this, which was, you know, a tremendous achievement. And it’s already bearing fruit in the first year with positive direction.”
“Since the implementation of Senate Bill 840, at least 1,600 of the new apartments are aimed at households earning below the area's typical income. However, some cities in the Dallas-Fort Worth region are imposing stricter building codes to limit the number of new developments, raising concerns about housing availability.”
