i hope the next part of his article covers the zoning issues. because I'm certainly not seeing the zoning issues making the homes be on bigger lots or requiring things like 3 car garages? If anything the lots in new tract developments in dallas fort worth are smaller and have less land using features like they don't have alleys. and then in Dallas city limits any small slice of land that can possibly be used for new houses have way smaller lots than any neighboring decades old homes.
the only instance I can think of that I know of is there as a historical black neighborhood near love field airport where Dallas changed the zoning to make redevelopment less profitable by requiring the houses take up less of the lot. This way developers can't build huge houses to offset the fact that the land is expensive or they can't build duplexes big enough to make them worth selling either. In fact there were a few duplexes going in to replace detached SFH and the developers were left in the lurch. I think even had to tear them down? I never followed up on the story. This was basically a policy to prevent gentrification by making the land less valuable by policy. Unfortunately gentrification and yimbyism seem like they go hand in hand because if you can develop bigger or more dense the property value goes up and people scream.
Where I can see regulation getting in the way is in the new codes. You can't build a house like you could in the 50s-70s anymore The code today is insanely expensive. Now those 70s houses weren't great. But they aren't didn't cost $200-300+/sqft at the low end.
in my view new single family housing can never be affordable because the cost is just so high. in fact. generic home ownership is as unaffordable as ever due to inflation. call a plumber to fix a leaky faucet? That will be $300. A new fence? $10k. A new HVAC system? $20k. A roof? $12k. These are all real costs for "small" homes. At least in the rental scenario the costs are controlled because not every single thing is a one-off. There are efficiencies at scale. If it's a housing rental company your maintenance guy is on a route, if it's an apartment you have building maintenance, etc.. The roof repair is a contract worth a million bucks where every roof is only $8000 instead of $12000.
It's absolutely a zoning issue. The Texas legislature is literally overriding large cities to force them to allow smaller lot sizes. Most of Dallas, for example, is R-7.5, which drives up cost because land is expensive and it requires you to dedicate a lot of it to your yard (max 45% coverage). Only a few areas, like some PDs in old east Dallas, have been rezoned to allow the smaller lots, though you seem to believe its all of Dallas city limits.
https://www.texastribune.org/2025/06/01/texas-legislature-sm... https://developmentweb.dallascityhall.com/publiczoningweb/#d... https://dallascityhall.com/departments/sustainabledevelopmen...
oh cool thanks. max 45% coverage is pretty low. I guess I must be thinking of some very specific developments that must have gotten variances.
He just did a podcast episode about envelope restrictions and how they're pushing the market for housing out of the sun belt. The subtext of all this stuff is ultimately zoning.
Increasingly, we're seeing home services companies like plumbing and HVAC owned by private equity. This is how you end up paying $300 an hour for the plumber (plus a $300 service fee just for showing up). The technician isn't getting the majority of that money.
Good rule of thumb is that if you see a home services company with billboards, or branded vehicles, they are going to be super expensive.
I feel lucky in the sense that I have both the physical ability and the skill to do almost all of my own maintenance myself. With what I saved on landscaping alone I was able to buy all the tools I needed for almost any project.
Long permitting processes also encourage construction of larger SFHs. The permitting cost is largely fixed whereas three profit margins scale with the value of the home which mostly scales with the size of the home
yes bigger houses to an extent are way more profitable because there is a somewhat linear relationship between sqft and value but houses have a lot of fixed cost. there's probably a sweet spot around 2500sqft in suburban/exurban Dallas Fort Worth to maximize the market for the house and still generate low $/sqft such that the guy building something bigger next tract over isn't crushing you on $/sqft.
that 2500sqft house is still $200-250/sqft way out in the middle of nowhere where the land doesn't really even factor in much.
All this is why I believe our best bet is allowing density. Even if one doesn't want to live in a busy city center, making this an option for those who want it, reduces demand and thus prices for people who want SFHs