Texas

Texas Just Launched a Four-Pronged Attack on the Housing Crisis

Tory Gattis — Tue, 24 Jun 2025 19:09:09 -0400

This legislative session has culminated in a landmark victory for property rights and housing affordability in Texas. Thanks to the tireless work of advocacy groups like Texans for Reasonable Solutions, which championed this entire suite of bills, Governor Abbott has now signed four powerful pieces of legislation that represent the most significant pro-housing reform the state has seen in decades. This isn't a single, timid step; it's a coordinated, multi-front assault on the regulatory red tape that has driven up housing costs and limited options for Texas families.

For years, we've watched major Texas metros grapple with an affordability crisis born not of scarcity of land or lack of demand, but of an ever-growing thicket of municipal ordinances. These four new laws—HB 24, SB 840, SB 2477, and the capstone bill, SB 15—take direct aim at the root of the problem: artificial constraints on supply. Let's break down each of these strategic wins.

1. HB 24: Ending the "Tyrant's Veto"

One of the most pernicious, anti-growth mechanisms in Texas zoning has been the "protest-by-a-small-minority" rule, rightly dubbed the "tyrant's veto." Under the old law, if owners of just 20% of the land area near a proposed zoning change objected, it triggered a supermajority vote (three-fourths) of the city council for approval. This gave a handful of NIMBY ("Not In My Back Yard") neighbors disproportionate power to block new housing projects that a simple majority of elected officials, and likely the community at large, supported.

Championed by Rep. Dustin Burrows and Sen. Bryan Hughes, HB 24 fundamentally restores fairness to the process. The bill targets the most common use of the veto by raising the protest threshold for adjacent property owners to 60% and, crucially, removes the supermajority requirement for those protests.

The result: A small group of opponents can no longer single-handedly kill beneficial projects. This strengthens property rights for landowners who wish to develop housing and empowers city councils to make decisions for the good of the entire city, not just a vocal few.

Read the rest of this piece at Houston Strategies.

Tory Gattis is the Founder at BeSomeone - Talent Unbound PBC, and former CEO & Founder at Microschool Revolution. Tory is a McKinsey consulting alum, TEDx speaker, and holds both an MBA and BSEE from Rice University. In his spare time, he writes his long-running Houston Strategies and Opportunity Urbanist blogs for the Houston Chronicle, and writes and speaks as a Founding Senior Fellow with the Urban Reform Institute.

Meta (Facebook) Leases All Office Space in Austin's Tallest

Wendell Cox — Wed, 12 Jan 2022 19:13:58 -0500

The Austin Business Journal reports that Meta (former Facebook) has leased all 33 office floors of the under construction Sixth and Guadeloupe Tower, which is due to open in 2023. The building will be Austin’s tallest building, at 66 floors and a height of 873 feet and is located downtown.

This will make the building the fifth tallest in Texas, behind the Houston’s JP Morgan Chase Tower (former Texas Commerce Bank), the Wells Fargo Plaza, and the Williams Tower, the tallest building in the United States outside a central business district (located in the Houston Galleria). One downtown Dallas building is also taller, the Bank of America Tower, which ranks third in the state, following Wells Fargo Plaza.

The building is mixed use and will have 349 residential units. It will be interesting to see how many Facebook employees will be able to afford living in the building, which would eliminate physical commuting almost as much as remote work.

Downtown Austin is developing rapidly and now is indicated by Cushman and Wakefield to have about 13 million square feet of office space (before Sixth and Guadeloupe), about equal to Cincinnati’s strong central business district. In this regard, Austin is following earlier models of dense downtown development in Calgary and Charlotte.

Downtown Austin is experiencing a building boom, which as of 2022 will have opened 15 buildings 400 feet high or more since 2010, when there were only four. In addition to the Sixth and Guadeloupe Tower, there are a number of new residential buildings planned for the Rainey Street District, adjacent on the east to downtown.

Austin was the fastest growing among the 56 major metropolitan areas (more than 1,000,000 population) in each of the last two decades. From 2010 to 2020, Austin added 567,000 residents, a 33% increase. Austin attracted 337,000 net domestic migrants between 2010 and 2020. This is more than all major metropolitan areas except for Dallas-Fort Worth, which is three times as large, and Phoenix, which is twice as large. Most of the new Austin residents settled in the suburban counties, which accounted for about two-thirds of the metropolitan area’s net domestic migration.

For decades, Austin has been playing a larger information technology role. Meta lease, and the new downtown “Google Tower” (Block 185) add significantly to this development.

Wendell Cox is principal of Demographia, an international public policy firm located in the St. Louis metropolitan area. He is a founding senior fellow at the Urban Reform Institute, Houston, a Senior Fellow with the Frontier Centre for Public Policy in Winnipeg and a member of the Advisory Board of the Center for Demographics and Policy at Chapman University in Orange, California. He has served as a visiting professor at the Conservatoire National des Arts et Metiers in Paris. His principal interests are economics, poverty alleviation, demographics, urban policy and transport. He is co-author of the annual Demographia International Housing Affordability Survey and author of Demographia World Urban Areas.

Mayor Tom Bradley appointed him to three terms on the Los Angeles County Transportation Commission (1977-1985) and Speaker of the House Newt Gingrich appointed him to the Amtrak Reform Council, to complete the unexpired term of New Jersey Governor Christine Todd Whitman (1999-2002). He is author of War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life and Toward More Prosperous Cities: A Framing Essay on Urban Areas, Transport, Planning and the Dimensions of Sustainability.

Jaw-Dropping News: Companies Investing $48.1 Billion in New Factories in Texas

Joe Vranich — Sun, 28 Nov 2021 16:21:56 -0500

Economic development professionals in Texas will remember this November for a long time as the month saw announcements for three record-breaking, colossal construction projects. It’s fair to call them “Texas-sized.”

First, Texas Instruments (TI) said it will build a $30 billion semiconductor fabrication plant in Sherman, which is about midway between Dallas and the Oklahoma border (an area often referred to as Texoma).

Next, Samsung Electronics, Co., Ltd., announced that it will construct a $17 billion semiconductor manufacturing facility in Taylor, which is near Austin.

Also, Tesla just revealed that its Gigafactory in Austin – where construction and interior finishing work is underway – revealed that its cost is estimated at $1.1 billion.

The announcements totaling $48.1 billion were announced in only an eight-day period, which may be a record in the world of economic development. I can speak only for myself, but I don’t recall anything of this magnitude occurring in such a short time span in any state.

Read the rest of this piece at Spectrum Location Solutions.

Joe Vranich helps businesses make location decisions driven by growth, consolidation, market changes, or a need to relocate to places with more favorable business climates.

Regulation of Electric Power in Texas

Jim Crump — Mon, 08 Mar 2021 12:12:40 -0500

Politicians, pundits, and the public at large have voiced deep concern that electricity was tragically unavailable to many Texans during the recent period of extreme cold. Claims that lax ERCOT planning caused the problem are exaggerated. “Grid independence” from federal regulation is manageable. The problem lies in the supervisory structure that regulates the Electricity Reliability Council of Texas (ERCOT) - Texas’ Public Utility Commission (PUC), a three-member panel appointed by the state legislature, and our elected officials, ultimate guardians of the public interest.

To start, claims that ERCOT’s planning process is undisciplined are misleading. Published documents (December 2020, January 2021) evidence well-structured scenario planning of capacity, demand, and reserve margin, including grid requirements and fuel types. True, evolving events brought conditions not premised in these studies but laxness is an unwarranted criticism.

The next layer of electric power management: Oversight of ERCOT by the PUC. Here, critical commentary by knowledgeable observers is valid. To begin with, independent management of Texas’ power grid – that is, independent of the Federal Energy Regulatory Commission (FERC) – rests on reasonable logic, not merely the fabled secessionist tendencies of Texans.

Read the rest of this piece at Houston Strategies.

Jim Crump is an energy and chemical industry leader with a depth of industry experience gained with Shell, Accenture Consulting, DuPont, and ExxonMobil, who focuses on energy transition and sustainability.

Affordably Improving Texas Power Grid Resilience

Tory Gattis — Mon, 22 Feb 2021 13:03:57 -0500

Hope you emerged from this crazy winter storm + power/water outage week relatively unscathed. I certainly learned the value of stockpiling water and draining water pipes (esp. with a power outage), and ERCOT learned that it's a bad idea to cut off power to natural gas pumps across the state during a winter storm. I hope they spend a bit of time doing analysis before jumping to expensive solutions like full winterization of all facilities. It's possible that if they had simply mapped natural gas pumps and compressors across the state and treated them as critical non-blackout facilities like hospitals, we might have gotten away with short-duration rolling blackouts that would have been far more manageable (like 2011).

From the Wall Street Journal:

"Solutions will have to be nuanced and incremental. Winterizing all power plants would be unnecessarily expensive, and so would a complete overhaul of Texas' market design, which is partly responsible for consistently low power prices compared with the rest of the country."

And an excellent idea: "One option could be rewarding liquefied natural-gas processing facilities in Texas to both curtail electricity usage and to redirect the feedstock natural gas for electricity rather than for exports."

And from Forbes - This Blizzard Exposes The Perils Of Attempting To ‘Electrify Everything’. Gas = resilience:

"to equal the 80 Bcf/d of gas delivered during cold snaps, the U.S. would need an electric grid as large as all existing generation in the country, which is currently about 1.2 terawatts."

Unpopular observation: gas-powered cars, trucks, and SUVs were a critical source of resilience during this never-ending mass power-outage disaster by providing heat and recharging. If we all had electric vehicles, this disaster would have been epically worse. A hard truth.

This piece first appeared on Houston Strategies.

Tory Gattis is a Founding Senior Fellow with the Center for Opportunity Urbanism and co-authored the original study with noted urbanist Joel Kotkin and others, creating a city philosophy around upward social mobility for all citizens as an alternative to the popular smart growth, new urbanism, and creative class movements. He is also an editor of the Houston Strategies blog.

Silicon Valley Exits California for Texas

Tory Gattis — Mon, 14 Dec 2020 12:11:03 -0500

The big news this week is all the different tech companies announcing their moves to Texas.

The big one for Houston is the announcement that HP Enterprise is moving its HQ from Silicon Valley to Spring just north of Houston - a long-term legacy benefit of Compaq Computer (which was acquired by HP and kept substantial operations here).

WSJ story: Hewlett Packard Enterprise to Leave Silicon Valley for Texas - Tech giant, which traces its roots to the origins of Silicon Valley, is latest company to move away from area long considered hub of innovation

“Houston is also an attractive market for us to recruit and retain talent, and a great place to do business,” Mr. Neri said, adding that as one of the largest and most diverse cities in the country, “Houston provides the opportunity over time to draw more diverse talent into our ranks.”

And some more detail from their press release: (hat tip George)

"Why Houston?

Houston has long been our largest U.S. employment hub, and construction has been underway since the beginning of the year on a new, state-of-the-art campus in the area. Houston is also an attractive market for us to recruit and retain talent, and a great place to do business. The most diverse city in America and the fourth largest, Houston provides the opportunity over time to draw more diverse talent into our ranks – a key priority for HPE as we work to be unconditionally inclusive.

We also anticipate long term cost savings associated with this move that we can reinvest in key areas of our business and innovation."

And finally a repost from Facebook that digs into what that increased affordability really means for employees:

"Hewlett-Packard announced its leaving Palo Alto for Houston.
$1,100 is the average rent in Houston.
$3,350 is the average rent in Palo Alto.

Just to give a concept of how much the extra $2,250 a month that saves is.
$530 is the average monthly payment on a car.
$460 is the monthly individual cost of health insurance.
$400 is the average monthly cost of food.
$145 is the average monthly spending on gas for a car.
$130 is the average monthly cost of car insurance.
$1,665 a month total.

Those 5 things which are just as essential for people in Palo Alto as Houston and cost about as much in both places cost that much.

If an HP employee moved to Houston and cut rent cost down, but chose to save $585 more a month and put it in a 401k paying 5% for 10 years, they’d have $92,700 or 7 years average rent in Houston.

Those 5 things are also essential, so let’s just say an HP employee moved to Houston and saved the entire $2,250 a month for 10 years.
$27,000 saved a year.
$357,000 saved over 10 years.
27 years worth of rent in Houston.
9 years worth of rent in Palo Alto.

A lot of people have a lot of different reasons for companies leaving, but I think the rent factor and how it’s extremely hard for employees to live is the problem.

Hewlett-Packard was the birth of Silicon Valley and it’s leaving.

I don’t see it as unlikely a future where Facebook, Uber, Google and more could join."

Then there are the other stories on Elon Musk's and Oracle's moves to Austin:

NYT: ‘Welcome to Texas!’: Musk’s California Departure Stokes the States’ Rivalry - Several companies have followed the same path to Texas, which has aggressively advertised lower taxes and fewer regulations.

"California, with its steep housing costs, raging wildfires and strict business regulations, has been losing residents to other states, with Texas as the most popular exodus destination. Of more than 653,000 people who left California last year, about 82,000 went to Texas, more than any other state, according to census figures.

Or, as The Stanford Review wrote in a nod to the native Texan George Strait, “All of California’s Exes Are Moving to Texas.” (????) ...

California and Texas — two economic powerhouses, one led by Democrats and the other by Republicans, with respective populations of 40 million and 29 million — are in many ways natural frenemies. It is a rivalry made up of In-N-Out versus Whataburger, of Disneyland versus the State Fair of Texas, of tacos versus, well, other tacos."

The Verge: Elon Musk says he has moved to Texas, calls California overly ‘complacent’ - ‘California has been winning for a long time, and I think they’re taking it for granted’
Techcrunch: Oracle is headed to Texas now, too

"Taxes, a more affordable cost of living for employees, a lower cost of doing business, and less competition for talent are among the top drivers for the companies’ moves, though there is also a growing sense that culture is a factor, as well."

WSJ: Covid-19, Remote Work Make Austin a Magnet for New Jobs - Texas’ capital is attracting corporate jobs and remote workers, lured by lower costs and lower taxes

All in all a very good week for Houston and Texas! Let's hope this is just the beginning of a much larger tech exodus from California to Texas...

This piece first appeared on Houston Strategies Blogspot.

Tory Gattis is a Founding Senior Fellow with the Urban Reform Institute and co-authored the original study with noted urbanist Joel Kotkin and others, creating a city philosophy around upward social mobility for all citizens as an alternative to the popular smart growth, new urbanism, and creative class movements. He is also an editor of the Houston Strategies blog.

Dissecting Biden vs. Trump with Former RNC Staffer Kevin Shuvalov

New Geography — Wed, 18 Nov 2020 12:15:58 -0500

On today's episode of Feudal Future hosts Joel Kotkin and Marshall Toplansky are joined by guest Kevin Shuvalov. Kevin served as Regional Political Director for the Republican National Committee, where he worked with state parties and campaigns in his region to grow Republican majorities in the Senate, House, and Governorships. In this role, he helped win Iowa’s electoral votes for President Bush as well as multiple other nationally prominent races, and helped create the successful “72 Hour” turnout program.

Their conversation begins with Joel asking Kevin if he was surprised with the turnout of the election and how the media portrayed the race to be one side or the other. Kevin responded with his concerns and what losing seats could have meant for Texas. Marshall followed the question up with how tech played a role and specifically how text message campaigns played a huge role in the election process. Not just the one-way text message route, but the back and forth communication with voters.

Joel continues and brings up a great point, “What astounds me is that Trump actually did better among young people and better among Hispanics and better, particularly among African American males than anyone expected. And that was particularly marked in Florida, and where you are in Texas, what happened and what does that mean?” Kevin responds and breaks down the Hispanic Latinos in Texas and how their wealth affects their decisions. Kevin also states that nothing is set in stone when it comes to the electorate.

As the episode ends, they speak about the control of communication by people who are overwhelmingly on the opposite side of the republican party and what it can manifest in the upcoming years.

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McKesson Moves to DFW from San Francisco

Wendell Cox — Wed, 05 Dec 2018 15:32:02 -0500

The Dallas-Fort Worth metropolitan area (DFW) will be the new headquarters of McKesson, the nation’s largest pharmaceutical distributor, the company announced this week. DFW will now have three of the top 10 companies in the Fortune 500 (ranked by total revenue). No other metropolitan area has more than one of the top 10. Dallas-Fort Worth is also home to Exxon-Mobil, the second largest company and AT&T, ranked ninth.

This continues the high-profile exodus of companies from California, with its high cost of living and Chief Executive Magazine ranking as the worst state for business. Not surprisingly, McKesson chose the state ranked as best for business, Texas.

Texas Way of Urbanism

Joel Kotkin — Thu, 20 Jul 2017 21:06:55 -0400

Texas cities may well be the cutting edge of American urban life. Here are two videos by Amanda Horvath that reflect the reporting done in the recent Texas Way of Urbanism report from the Center for Opportunity Urbanism.

One of these videos deals with San Antonio, the other Austin.

Which Countries Would Fit Inside of Texas?

Brian Shreckengast — Tue, 05 Jul 2016 17:55:21 -0400

Everyone knows that Texas is big. In the self-storage world, Texas would be a 10x30 storage unit, the biggest of the bunch. But many people (namely, Yankees and Europeans) may not realize just how massive the Lone Star State really is. How that at 261,231 square miles of land, Texas would be the 39th-largest country by land area in the world, coming in just behind Zambia and ahead of Myanmar. Since there are, give-or-take, roughly 200 countries in the world, that means that most of them are in fact smaller than Texas. In order to truly convey Texas's size, we came up with a zany hypothetical scenario: if Texas were a storage unit, what countries could fit inside?

Of course, using maps to illustrate size is a tricky matter, since most 2D map projections distort size in favor of shape. This includes the Mercator Projection used by Google Maps. Fortunately, we found thetruesize.com, a tool which runs on top of Google Maps and accounts for these distortions, allowing for accurate size comparisons. Now you can see exactly how these countries would fit inside of your Texas storage unit.