A Strategic Plan to Deliver 500,000 New Homes by 2035

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Texas stands at a pivotal moment in its economic trajectory, driven by rapid population growth, a diverse economy, and a pro-business environment known as the Texas Miracle. However, the affordability and availability of housing have become critical issues that threaten this economic momentum. To address these challenges, Quantum America proposes a strategic initiative to deliver 500,000 attainable homes from 2025 to 2035 through public-private partnerships (PPPs) with cities, rural communities, the State of Texas, and school districts. This initiative focuses on creating sustainable, resilient, and affordable housing options that will ensure Texas remains a beacon for opportunity and growth.

Introduction

The “Texas Miracle” describes the economic boom that has defined Texas over recent decades, characterized by high job creation, population growth, and a business-friendly environment. However, with increasing housing demands and a significant shortage in attainable housing, Texas faces a risk of stalling its economic growth if it fails to accommodate its growing workforce with affordable, resilient housing solutions. This white paper outlines a 10-year plan to add 500,000 homes by 2035, with an emphasis on collaboration between the public and private sectors.

Objectives

• Deliver 500,000 New Attainable Homes: Construct 500,000 homes focused on attainable and workforce housing across Texas by 2035.

• Strengthen Public-Private Partnerships: Collaborate with cities, rural communities, the State of Texas, and school districts to streamline processes and provide essential resources.

• Ensure Sustainable Growth: Use eco-friendly and resilient building materials and techniques to provide sustainable, long-lasting housing.

• Enhance Economic Stability: Support the Texas Miracle by ensuring that the workforce has affordable housing options, thus reducing commuting times and fostering local economic development.

Projected Housing Needs

Population Growth and Housing Demand

1. Population Projections: Texas’s population is expected to reach approximately 38 million by 2035, driven by both natural growth and migration.

2. Household Formation: With an average household size of 2.8, Texas will need approximately 3.2 million new housing units by 2035.

3. Current Housing Shortage: Texas faces a current shortfall of 600,000 affordable housing units. Bridging this gap while meeting future demands is essential to maintaining the state’s economic stability.

Attainable and Workforce Housing Focus

To support Texas’s growth sustainably, at least 50% of new housing units should cater to attainable and workforce housing, specifically targeting essential workers such as nurses, teachers, and first responders.

Strategic Pillars

1. Increasing Housing Supply through Zoning Reforms and Permitting Efficiency

• Zoning Reforms: Work with local governments to reform zoning laws, allowing for higher-density, mixed-use, and affordable housing developments. This reform will enable Quantum America and its partners to create diverse housing solutions that meet the needs of Texas’s growing population.

• Streamlined Permitting Processes: Partner with local jurisdictions to simplify permitting and reduce construction timelines, minimizing costs and speeding up housing delivery.

2. Promoting Affordable Housing through Incentives and Inclusionary Zoning

• Developer Incentives: Offer tax breaks, grants, and low-interest loans for developers committed to building affordable and workforce housing.

• Inclusionary Zoning: Mandate that a percentage of units in new developments are reserved for affordable housing to ensure diverse and inclusive communities.

3. Leveraging State-Owned Land for Affordable Housing

• Develop on State Land: Use underutilized state-owned land to develop affordable housing, reducing acquisition costs and expanding opportunities for lower-income families.

• Land Banking: Establish a land bank to acquire, hold, and release land for future affordable housing developments.

4. Workforce Housing Programs for Essential Workers

• Targeted Programs for Essential Workers: Establish initiatives for essential workers (e.g., teachers, healthcare professionals, first responders) to access affordable housing near their workplaces, reducing commute times and enhancing community stability.

• Employer-Assisted Housing: Partner with large employers to provide housing assistance, including down payment aid or rental subsidies, to retain talent and foster community loyalty.

5. Addressing Homelessness through Comprehensive Services

• Integrated Support Services: Develop transitional housing and provide mental health, job training, and financial literacy programs to address homelessness holistically.

• Permanent Supportive Housing: Allocate resources to create permanent housing options with supportive services, addressing root causes of homelessness and fostering long-term stability.

6. Expanding Housing Finance Options

• State Housing Programs: Increase funding to state agencies like the Texas Department of Housing and Community Affairs (TDHCA) to provide resources for first-time homebuyers and low-income residents.

• Tax Credit Programs: Utilize and expand Low-Income Housing Tax Credits (LIHTC) to encourage the development of affordable rental housing.

7. Investing in Infrastructure and Transportation

• Transportation Investments: Develop public transit and road networks that connect affordable housing with employment centers, reducing commute times and enhancing quality of life.

• Utility Infrastructure: Ensure that new developments have reliable access to utilities, including water, electricity, and broadband, to meet modern living standards.

8. Encouraging Sustainable and Resilient Housing Development

• Building Practices: Integrate eco-friendly materials and energy-efficient designs to reduce long-term costs and minimize environmental impact.

• Disaster-Resilient Construction: Build homes to withstand natural disasters common in Texas, such as hurricanes and extreme heat, ensuring that communities are safe and durable.

9. Community Engagement and Comprehensive Planning

• Local Collaboration: Work with local governments, community organizations, and residents to identify unique housing needs and tailor solutions.

• Comprehensive Regional Planning: Coordinate with regional planners to develop long-term housing plans that align with Texas’s economic growth projections.

10. Monitoring and Policy Adjustments

• Data-Driven Approach: Use data to track housing trends, measure policy effectiveness, and adjust strategies as needed to ensure objectives are met.

• Policy Flexibility: Ensure that housing policies remain adaptable to changing economic and demographic conditions.

Implementation Framework

Phase 1: Foundation and Partnerships (2025-2026)

1. Establish Partnerships: Form alliances with government agencies, school districts, and local communities.

2. Pilot Projects: Launch pilot housing developments in strategic locations to demonstrate feasibility and build public support.

3. Legislative Support: Work with Texas legislators to pass laws supporting affordable housing initiatives and secure funding.

Phase 2: Scaling Development (2027-2030)

1. Expand Housing Production: Increase the volume of housing units through streamlined processes and greater access to state-owned land.

2. Community Integration: Incorporate amenities and infrastructure that enhance the living experience, such as schools, parks, and medical facilities.

3. Public Awareness Campaigns: Run initiatives to educate the public on the benefits of sustainable, attainable housing.

Phase 3: Full Implementation and Assessment (2031-2035)

1. Achieve Full-Scale Housing Delivery: Reach the goal of 500,000 new homes, with 50% dedicated to attainable and workforce housing.

2. Evaluate and Report: Assess project outcomes, collect data on resident satisfaction, and provide reports to policymakers to guide future housing decisions.

3. Policy Adjustments: Modify housing policies based on findings to address emerging trends or challenges.

Challenges and Solutions

1. Land Availability: Work with local authorities to secure land and streamline zoning approvals.

2. Construction Costs: Utilize advanced building techniques and economies of scale to reduce costs.

3. Political Support: Foster bipartisan support by demonstrating economic and social benefits of affordable housing.

4. Community Opposition: Engage in transparent communication to address concerns and highlight community benefits.