Houston Housing Affordability Debate Overlooks Role of Local Regulations

Data shows institutional investors account for only a small share of Houston's housing market, while local policies drive up costs.

Mar. 16, 2026 at 10:36pm

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A recent op-ed in the Houston Chronicle argues that the narrative of institutional investors crowding out homebuyers in Houston's housing market is not supported by data. The article cites industry data showing large institutional investors accounted for only 1.9% of cash home purchases in the Houston metro area in 2025, and that local regulations and rising property taxes are far greater contributors to the city's housing affordability challenges.

Why it matters

Houston has long been known for its affordability, but rising home prices have put homeownership out of reach for many. Understanding the true drivers of this trend is crucial for policymakers to enact effective solutions that address the root causes, rather than scapegoating certain market participants.

The details

The op-ed cites data showing that large institutional investors purchased only 105 homes in Houston between 2023-2025, losing 97% of the bids they submitted. In contrast, Harris County Appraisal District data shows around 29,300 homes out of 1.14 million single-family residences are owned by institutional investors, about 2.6%. The article argues that factors like a 30% increase in property taxes from 2023-2024 and the costs of local regulations, which account for 24% of a new home's final sales price, are much more significant drivers of unaffordability.

  • In 2025, large institutional investors accounted for 1.9% of cash home purchases in the Houston metro area.
  • From 2023 to 2025, one of the largest institutional investors, Amherst, submitted 4,314 bids in Houston and purchased 105 homes at an average of 88.6% of listing price.
  • Harris County and related entities increased property taxes on the average homestead by nearly 30% from 2023 to 2024.

The players

Charles Blain

The author of the op-ed and president of the Urban Reform Institute, a think tank that promotes opportunity and social mobility.

Raysall Wiggins

A Houston mother who was featured as a guest during the State of the Union, where the president claimed she had lost 20 home bids to "gigantic investment firms".

Amherst

One of the largest institutional investors operating in Texas, which submitted 4,314 bids in Houston between 2023 and 2025 and purchased 105 homes.

Greg Abbott

The Governor of Texas who signed a bipartisan slate of statewide supply-side reforms in 2025.

Donald Trump

The former president who signed an executive order encouraging cities to adopt zoning changes, reduce parking minimums, and streamline permitting to address housing affordability.

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What they’re saying

“If you want someone to blame for unaffordable housing prices, ignore investors and look at the government. Harris County and related entities increased property taxes on the average homestead by nearly 30 percent from 2023 to 2024 when accounting for both the tax rate and appraised values.”

— Charles Blain, President, Urban Reform Institute (Houston Chronicle)

“Trump knows this, which is why in his first term he signed an executive order encouraging cities to adopt zoning changes, reduce parking minimums and streamline permitting. That was the right instinct, not blaming investors.”

— Charles Blain, President, Urban Reform Institute (Houston Chronicle)

What’s next

The City of Austin loosened its land use restrictions in 2024, and building permits surged 86% in the first year. Hopefully, we'll see similar trends across the state as a bipartisan slate of statewide supply-side reforms earned Governor Greg Abbott's signature in 2025.

The takeaway

This case highlights how the narrative of institutional investors driving up housing costs in Houston is not supported by the data, which shows local regulations and policies are far more significant factors. Addressing the root causes of unaffordability, such as restrictive zoning and high property taxes, is crucial for improving housing access for Houstonians.