Texas Incomes Rise, But Housing Costs Outpace Gains

Census data shows housing affordability eroding despite economic growth in the state

Jan. 29, 2026 at 7:15am

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Despite economic growth and rising incomes in Texas, housing costs have outpaced income gains, leaving more renters and homeowners burdened by high housing expenses, according to new U.S. Census Bureau data. The median household income in Texas grew 3.1% between 2019 and 2024, trailing the national median income growth of 4.4%. Meanwhile, median rents in Texas rose 9.1% and homeownership costs also climbed, pushing more than half of Texas renters and 29% of homeowners to be 'cost-burdened' by spending over 30% of their income on housing.

Why it matters

The widening gap between incomes and housing costs in Texas raises concerns about the state's long-held reputation for affordability, especially as it continues to attract new residents. Lawmakers have taken steps to ease the state's housing shortage, but advocates say more needs to be done to help lower-income households find affordable places to live.

The details

The median household income in Texas during the 2020-2024 period was $78,476, a 3.1% increase from the 2015-2019 period. However, that trailed the national median household income of $80,734, which grew 4.4% over the same time. Meanwhile, median rents in Texas rose 9.1% after adjusting for inflation, and homeownership costs also climbed, pushing the share of 'cost-burdened' renters above 50% and the share of 'cost-burdened' homeowners to 29%.

  • The Census data was collected over the five-year period ending in 2024.
  • Rents in the Austin-Round Rock region have fallen in recent years amid a building boom.

The players

Ben Martin

Research director for Texas Housers, a research and advocacy group.

Lloyd Potter

The state demographer of Texas.

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What they’re saying

“Texas is in no position to be taking a victory lap right now on housing affordability.”

— Ben Martin, Research director (cw39.com)

“None of these (changes) are really dramatic, but they certainly are moving in the direction that I think we would like them to be moving.”

— Lloyd Potter, State Demographer (cw39.com)

What’s next

State lawmakers passed laws last year aimed at easing the state's housing shortage, a key driver of high home prices and rents, primarily by making it easier to build new houses and apartments. Advocates say lawmakers also need to adopt strategies to help lower-income households find affordable housing.

The takeaway

Despite Texas' economic growth, the widening gap between incomes and housing costs is eroding the state's long-held reputation for affordability, raising concerns about access to housing, especially for lower-income residents. While lawmakers have taken some steps, more solutions are needed to address the state's housing challenges.