Report: Texas Needs ‘Hundreds of Thousands’ of New Homes to Meet Demand

For the second consecutive year, home construction in the state failed to keep up with rising demand.

1 minute read

March 9, 2026, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Wood-framed townhomes under construction in Houston, Texas with light green two-story building in background.

Townhomes under construction in Houston, Texas. | TBaker770 / Shutterstock

Home construction in Texas failed to keep up with demand for the second year in a row, according to a report from Realtor.com. As Ahmed Humble explains in the Houston Chronicle, the state needs hundreds of thousands more homes than are available.

“The persistent supply gap matters because it puts upward pressure on both home prices and rents. Houston-area buyers have faced this firsthand: home prices in the region have risen sharply over the past several years, while housing inventory remains lean compared with demand.” Although Texas has built more homes than any other state, it’s not enough to meet growing demand driven by rapid population growth and in-migration. In Houston, the number of new apartments built in 2025 “fell significantly compared with prior years, even as other Texas metros delivered more multifamily units.” 

Sunday, March 8, 2026 in Houston Chronicle

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

September 16, 2026 - Zachary Whalen

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

A cluster of wind turbines beneath a stormy sky, above a forest where the leaves are beginning to change colors.

5 New England states march closer to 800 megawatt wind energy project

Securing federal approval for the project may be complicated under the Trump administration, which has historically been hostile towards domestic wind power.

6 hours ago - Inside Climate News

People boarding a bus on Maryland's Orange Route.

Baltimore to break ground on $50 million Transit Priority Project

The project will bring faster bus trips, safer streets and better bike connections to Baltimore.

7 hours ago - Mass Transit

A brick building with a circular sign with the Airbnb logo hanging off of it.

Airbnb launches $250 million 'last-dollar financing' housing accelerator, makes first investment in Austin

The company will put $6.4 million towards affordable housing development in Texas’ capital.

September 16 - Smart Cities Dive

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.