A recent report by Texas 2036 and the Center for Sustainable Development at the University of Texas at Austin School of Architecture concludes that higher density residential development can generate significantly more net revenue for Texas cities compared to traditional suburban subdivisions.
The study, which examines nine housing developments in Fort Worth, College Station, and Fate, reveals that medium- and high-density developments often yield more revenue through property taxes than they cost to maintain.
Dr. Jake Wegmann, associate professor at UT Austin School of Architecture and lead author of the study, said: “Texas cities are growing fast, and every new development comes with both opportunities and obligations. Our analysis shows that when cities choose compact growth, they’re not just making more room for residents—they’re also making more room in their budgets.”
The research highlights that denser developments were sometimes over $3,000 more fiscally productive per housing unit. Emily Dove, policy advisor at Texas 2036, commented on the findings: “Texas communities are navigating tough choices about growth, affordability, and infrastructure. This study equips local leaders with real-world data on the financial consequences of their land use decisions. That’s the kind of insight Texas needs to grow responsibly.”
The paper also suggests that there may be long-term savings potential of denser developments due to reduced need for new roads and infrastructure maintenance. The findings are supported by a fiscal impact model available at www.texas2036.org/housing.
The study was released as state legislators discuss reforms to tackle housing affordability issues across Texas. Texas 2036 believes it provides a roadmap for city leaders aiming to accommodate population growth sustainably.
The research, according to the website, was supported by Wells Fargo and Texas REALTORS.
More information about the report can be found here.