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​​​​​​​​​The health of the Texas economy supported strong housing demand, but the shortage of homes, especially those priced below $300,000, limited overall growth. ​

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​​​​In 2002, the Real Estate Center delineated Texas into seven distinct rural land regions. Focusing on data at the regional rather than statewide level has enabled the Center to more precisely monitor land market trends.​​

​​​Since 1983, eight severe weather events have each caused a billion dollars or more in damages in Houston. While the city has proven economically resilient after each storm, better flood management and infrastructure remain a challenge.

​​​​Although Texas' housing market as a whole remains relatively affordable, a recent shift from lower-priced new homes to more expensive homes has reduced affordability for lower-income earners in some markets. ​

​​​New-home inventories in Texas have averaged 4.8 months since 2012, well below the six- to 6.5-month equilibrium level. Rising land prices and lagging labor productivity prevented a sufficient supply-side response following the Great Recession.

​​​​​​Rising land costs contribute to rising home prices. As land costs increase, they account for a larger portion of a home's overall price. In 2016, land accounted for an average of 20.4 percent of the cost of a home in Texas.