Texas Democrats plan to advance housing affordability after this week's historic election sweep, building on Republican-led supply reforms while pursuing stronger tenant protections and state investment in affordable units.
Senate Bill 840, enacted in September 2025, allows developers to convert commercial properties to apartments without extensive rezoning. Since taking effect, the law has enabled plans for at least 8,400 apartments, representing roughly one-fifth of multifamily units permitted statewide during that period, according to a July analysis cited by the Texas Tribune.
Texas leads the nation in homebuilding, accounting for 14.6% of building permits issued nationwide, according to Realtor.com's Affordability and Homebuilding Report Cards. Yet the state faces a shortage of 709,000 affordable and available rentals for extremely low-income households, according to the National Low Income Housing Coalition.
Gov.-elect Gina Hinojosa voted to advance SB 840 during her time in the state Legislature. Scott Norman, CEO of the Texas Association of Builders, says he expects her to continue the bipartisan housing push. "It's neither D nor R. It's H for housing," Norman tells Realtor.com.
Texas allocated just $10.1 million in state funding to the Housing Trust Fund for fiscal years 2026 and 2027, while awarding more than $114 million in federal housing tax credits in 2026 alone, according to the report.
Land Commissioner-elect Ben Flores plans to inventory parcels managed by the General Land Office near growing cities and lease them for housing for teachers, nurses, first responders, and working families. He intends to prioritize Houston and the Rio Grande Valley, citing rising housing costs compounded by flood recovery challenges.
Flores promises to address delays in distributing disaster recovery aid. "When the state relies solely on federal dollars run through slow, unaccountable systems, the families with the least end up waiting the longest," Texas Housers says. Flores says he will conduct an agency audit in his first 90 days with public progress reports every 30 days.
Lt. Gov.-elect Vikki Goodwin has proposed property tax incentives for landlords who maintain affordable rents. Attorney General-elect Nathan Johnson has promised a 30-day review of consumer protection laws, specifically identifying algorithmic rent-setting as an enforcement concern.
Texas has added more than 2.6 million residents since 2020, according to U.S. Census Bureau figures. A Miami Beach luxury real estate agent, Miltiadis Kastanis of Compass, says inquiries from Texas buyers were rising before the election and expects the political shift could accelerate interest among wealthy Texans.