For the second consecutive year, home construction across Texas failed to keep pace with demand, widening an already historic housing supply gap and adding pressure to affordability across the state.
According to a new report from Realtor.com, the nationwide housing supply deficit surpassed 4 million homes in 2025, as new construction again fell short of the number of households being formed and expected buyer demand. The shortfall widened from an estimated 3.8 million in 2024, underscoring how underbuilding has become entrenched in the U.S. housing market.
In Texas, the gap between housing demand and new construction has contributed to sustained affordability challenges that have shaped the state’s housing landscape for years. Per Texas Today, an analysis by housing policy experts in 2024 found the state needed hundreds of thousands more homes than were available, even as the state issued record building permits…