“While we’re more affordable, we’re not as affordable as we used to be,” said Comptroller Glenn Hegar, adding that job creation has put pressure on the housing market, alongside other factors.
“COVID, 40-year-high inflation, what did that mean? Anything that you and I purchase is more expensive than it used to be,” he added. “The replacement costs of any type of damage to a home, whether it is from a storm or just wear and tear, there’s more cost. And so, you also see higher increases in insurance.”
President Donald Trump says he will impose a 25 percent tax on imports against Canada and Mexico as soon as this week unless they reduce illegal immigration into the United States. President Trump already threatened Colombia with the economic measure if they did not accept deportation flights, to which they yielded.
“If you’re a businessman, and you’re buying something for $100, and now it’s going to cost you $125, what are you going to do?,” asked President of Pyramid Homes Anwar Khalifa, a home builder in East Texas, referring to potential tariffs against Canada and Mexico. “Not only is the consumer going to pay for it, they’re going to pay for it dearly.”
State Sen. Bryan Hughes (R-Mineola) has authored several bills during the 89th Texas Legislative Session aimed at curbing regulations in the housing sector, including one he says would allow residential units to be built in commercial areas.
“We have to get that regulation out of the way, bring those costs down, make it easier to build so that folks can buy homes and can live that American dream,” Hughes said.
“Texas needs to look at several things,” said Hegar. “One, the regulatory aspect on a local level. You also need to look at what rules and permits the state has to make sure we enable and increase affordability and increase permitting. Also, the state must continue to reduce, continue on property taxes, relieve that burden, as well as make sure that our insurance rates are being contained as much as possible.”
As Texas’ population continues to increase, Hegar says homeowners could face higher property taxes. Hughes said that during the legislative session, lawmakers may increase the homestead exemption to try to reduce property taxes.
“If Texas becomes less affordable, as we have seen with other states, whether it’s the east coast or the west coast, people start moving and they move to somewhere else that’s more affordable,” Hegar said
