EXECUTIVE SUMMARY

Introduction: How Texas averted the Great Recession:

Texas has received considerable publicity for superior economic performance during the recession (the “Great Recession”) and the fact that the “housing bubble” had very little impact in the state. The performance of Texas has been particularly favorable compared to its other largest state competitors, California and Florida, both of which experienced severe economic and housing market distress. One of the factors that helped Texas avoid both the Great Recession and the housing bubble was its market oriented land use policies. By contrast, where land use restrictions were more restrictive (California, Florida and other places), house price increases were far more substantial, as was the subsequent price collapse.

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