America's two most populous states are taking radically different approaches to the housing affordability crisis — and the early results are revealing.
Texas: Build, Build, Build
Texas has minimal zoning restrictions, no state income tax, and fast permitting. Houston's lack of zoning has allowed rapid construction. Result: median home price $310,000 (vs national average $410,000). Texas added 240,000 new housing units in 2025.
California: Regulate and Subsidize
California has implemented rent control, inclusionary zoning, and billions in affordable housing subsidies. Result: median home price $750,000 (highest in the nation). Only 120,000 new units built in 2025 despite a larger population.
Lessons
- Supply matters most — areas that build more have lower prices
- Regulations intended to help often reduce construction and worsen affordability
- Neither approach solves homelessness alone — mental health and substance abuse treatment are essential
States watching both experiments include Florida, Colorado, and Washington, each adapting elements of both approaches to their local contexts.
