As we talk about all the time, Wildhorn Capital is geographically focused on Central Texas. It’s our home, it’s a growth market that we believe in long term, and it’s a place we believe we have a competitive edge. That edge comes in the form of relationships, local market knowledge, and being very active civically and in the community.
As of last week, the Texas Legislature is officially in session. The issues that are debated, and the decisions that are made will impact our state – and thus our real estate industry – over the next few years. We thought it would be a great time to offer our perspective and thoughts on some of the big issues we expect to be addressed.
The Texas Legislature meets in regular session every two years, convening on the second Tuesday in January of odd-numbered years. In 2025, the 89th Texas Legislature will begin its session on January 14. Regular sessions last for 140 days, typically adjourning in late May. However, the governor can call special sessions at any time to address specific issues, as seen in recent years with debates over school choice and other key policies. Each session is distinct, making it difficult to predict what will be passed or changed by state legislators.
During the last legislative session, I served as Chairman of the Real Estate Council of Austin (RECA). RECA has been highly active over the past five sessions, successfully lobbying for reforms that positively impact Austin and the real estate industry across Texas. I will continue serving on RECA’s legislative task force and look forward to spending time at the Capitol, meeting with and educating legislators throughout the session. However, this session may prove very different due to internal disagreements among Republican state legislators.
As the 89th Texas Legislature convenes, the Republican Party is experiencing significant internal shifts poised to influence the state’s legislative direction. A recent pivotal development is the election of Dustin Burrows as the new Speaker of the House, marking a departure from the hard-right faction’s preferred candidate, David Cook. Burrows secured the position with substantial support from Democrats, signaling a victory for the GOP’s establishment wing.
This leadership change occurs amid notable disagreements within the Republican ranks, particularly between Governor Greg Abbott and other high-ranking party members. A central point of contention has been the issue of school choice. Governor Abbott has been a staunch advocate for school voucher programs, aiming to provide parents with greater autonomy over their children’s education. Despite multiple special sessions, the Texas House previously failed to pass such legislation, largely due to internal party resistance. However, recent elections have shifted the legislative landscape. Pro-school-choice candidates made significant gains, with several Republicans who opposed voucher programs losing their seats. This shift has bolstered Governor Abbott’s position, and he has expressed confidence that the new House composition will favor the passage of school voucher legislation this session.
Further complicating the Republican Party’s internal dynamics is the aftermath of Attorney General Ken Paxton’s impeachment. The proceedings exposed rifts within the party, leading to intensified primary challenges and a reevaluation of leadership roles. Former Speaker Dade Phelan, criticized by the party’s hard-right faction for his handling of the impeachment, chose not to seek another term, paving the way for Burrows’ election.
As the legislative session unfolds, all eyes will be on how these internal Republican dynamics influence policy decisions, particularly concerning school choice. The strengthened position of pro-voucher advocates suggests significant educational reforms may be on the horizon, reflecting the evolving priorities within the Texas GOP.
Given these factors, I do not anticipate a large number of bills or opportunities for sweeping change across interest groups statewide. For the real estate industry, most legislation will likely focus on amending or clarifying previous bills. Notably, a recently filed bill seeks to significantly amend the Housing Finance Corporation (HFC) affordable housing program. In 2023, a similar bill drastically changed the Public Facility Corporation (PFC) program. Below are a few additional bills filed during the first week of the session:
- SB 35: Introduced by Senator Hughes, this bill mandates an annual study by the Texas A&M University Real Estate Research Center on the purchase and sale of single-family homes by certain institutional buyers.
- SB 36: Also filed by Senator Hughes, this legislation addresses property owners’ associations, including condominium associations, suggesting potential changes to their governance or operations.
- SB 38: Authored by Senator Kolkhorst, this bill concerns the purchase or acquisition of title to real property by certain aliens or foreign entities, aiming to address foreign ownership of Texas lands.
- SB 31: Filed by Senator Zaffirini, this bill clarifies who is authorized to exercise the power of sale under a contract lien on real property, potentially impacting foreclosure processes.
In the past, major state-level changes significantly impacted our industry. However, with the current city council, we have seen more positive changes emerging from City Hall than at almost any time in my life. A great example is the reform of real estate compatibility regulations. RECA helped sponsor a bill aimed at improving Austin’s compatibility standards, which have long hindered growth and redevelopment. Although the bill narrowly failed, we planned to revisit it this session. Unexpectedly, in 2024, the city council took unprecedented action and passed standards closely mirroring our state-level goals. This progress gives me hope and confidence that better days are ahead for Austin.
A lifelong Austinite and UT graduate, Cooper has worked in a variety of roles in the commercial real estate space throughout his career in Central Texas. Most recently, Cooper served in a business development role for Heritage Title for over 9 years. His diverse background serving clients in a variety of roles is an ideal fit for his position at Wildhorn Capital, where he manages the company’s capital relationships and focuses on deal sourcing in Austin.
