Why Abundance Affirms Dallas Over Regulated Blue-State Markets

If you’re investing in Dallas real estate right now, you’re not just buying a home – you’re buying into a system that actually allows homes to get built.

I’ve been reading Abundance by Ezra Klein and Derek Thompson, a book that breaks down why so many parts of the country are in a housing crisis. The takeaway is clear: markets like Dallas are thriving because they’ve made room for growth. Blue‑state cities, on the other hand, have made it nearly impossible.

Through restrictive zoning, endless permitting delays, and community opposition to development, many coastal metros have made new housing rare and expensive. While they claim to champion affordability, their systems prevent it. Dallas, in contrast, is doing the one thing that Abundance says matters most: building.

Let’s break down what that means for long‑term investors.

How Blue States Built the Crisis

In many high‑cost coastal states, more than 70 percent of residential land is zoned exclusively for single‑family homes. Even as populations have surged, efforts to legalize more housing types like duplexes, triplexes, or accessory dwelling units have been met with heavy resistance.

The result is a structural shortage. New construction is slow, heavily litigated, and often canceled before it breaks ground. Developers pull back. Investors face rising costs and decreasing control. And tenants, ironically, face fewer options and higher prices.

According to Abundance, these patterns aren’t just market failures. They’re political failures. When every new unit has to clear a minefield of local veto points, the result is predictably inadequate supply. Even policies aimed at affordability, like rent control or relocation assistance, often backfire by reducing the incentive to build or maintain rental housing.

The Texas Approach: Build More, Regulate Less

Texas, by contrast, embraces supply. In 2024, it led the nation in new housing starts, approving more than 133,000 new units in the first half of the year alone. Dallas–Fort Worth continues to rank among the top metros for new construction permits per capita. The state’s zoning laws allow for denser development and faster approvals. Rent control is banned. Eviction processes are clearer and faster. Local governments are less likely to shift the rules mid-ownership.

That pro-growth posture shows up in the numbers. While blue‑state cities have seen runaway price appreciation, Texas metros have experienced steadier, more manageable growth. Dallas offers a compelling combination of strong long‑term demand, relatively affordable entry points, and fewer regulatory headwinds.

My Own Shift: From Regulated to Responsive

This contrast is personal. Not long ago, I sold a rental property in Washington State and reinvested in two homes just outside of Dallas. That move wasn’t just about price points. It was about control. In Seattle, rising operational costs, increasing tenant protections, and a tightening policy landscape had made it harder to plan for the future.

In Texas, I found the opposite. Predictable rules. Faster timelines. Fewer surprises. And better monthly cash flow.

One example: a property I purchased in Mesquite was tenant-ready within a week. We had no delays for inspection, no mandatory registration hoops to jump through, and no anxiety about the city moving the goalposts mid-lease. That kind of operational stability is hard to overstate. It allows you to focus on growing your portfolio, not navigating red tape.

And it’s not just the permitting and legal structure. Property management is smoother too. When you can screen tenants, enforce leases, and respond to issues without second-guessing your legal exposure, it changes how you operate. Texas doesn’t just welcome growth – it doesn’t punish ownership.

Section 8 and the Dallas Opportunity

An often-overlooked strength of investing in Dallas is the strong partnership with the Dallas Housing Authority (DHA). The DHA administers over 16,700 Housing Choice Vouchers in the county, supporting both tenant-based and project-based placements. Zoned to place tenants in high-opportunity suburbs, DHA offers payment standards that pay above market rents, thereby attracting investors.

Even more compelling is a DHA and HUD-backed program that incentivizes landlords to accept vouchers in low-poverty, high-performing school neighborhoods. A recent $5 million grant underwrites rent premiums, moving costs, and security deposits for landlords—particularly targeting areas outside inner city. 

That creates a double advantage for investors working with Section 8. First, Dallas’s regulatory environment minimizes friction. Second, DHA’s focused programs make it easier to secure and maintain high-quality tenants in desirable areas—without sacrificing yield or rental stability.

Whether you’re focused on cash flow, long‑term hold, or equity growth, this alignment between pro-growth policy and proactive housing authority programs gives Dallas investors an edge.

What This Means for Investors

Abundance doesn’t just diagnose the problem. It offers a prescription: reform zoning, streamline permitting, and build for the future. Many blue states are still wrestling with those changes. Dallas is already there.

If you’re thinking long term, with stable rents, scalable portfolios, and tenant demand backed by effective housing programs, Dallas continues to offer what many other markets can’t. Room to grow, and a government that doesn’t get in the way while actively supporting your tenants.