While much of the country faces housing shortages and rising costs, the Dallas–Fort Worth metroplex has defied the trend. It is one of the fastest-growing housing markets in the United States. Since 2010, housing units in the region increased by more than 27%, more than double the national rate. Yet Plano, which lies in the heart of the area, is closing public schools.
Plano Independent School District shuttered four campuses last spring, citing declining enrollment and rising home prices. But just miles away, Prosper is adding four new schools in the fall to accommodate an influx of families. Plano’s enrollment losses, set against expansion elsewhere, are the result of policy choices, particularly the way housing is regulated.
Across the U.S., renters are often treated as second-class citizens in housing markets. In many cities, regulations make it increasingly difficult to build rental housing, particularly multifamily units. In Texas, this tension has become more visible as state policymakers have sought to lower barriers to housing construction with the passage of Senate Bill 840, which allows apartments in commercially zoned areas and reduces procedural hurdles. Still, at the local level, many cities continue to resist.
HOUSING WON’T GET BETTER WITHOUT A ZONING REVOLUTION
Rather than explicitly banning apartments, which is politically and legally riskier, municipalities simply make them prohibitively expensive to build. Irving and Arlington, for instance, have adopted layers of regulatory requirements that function as de facto barriers to entry. These include minimum building heights that eliminate cost-effective wood-frame construction, mandates for amenities such as gyms, remote work centers, and clubhouses, strict unit-mix rules, covered parking and extensive landscaping buffer requirements, and architectural features such as balconies and in-unit laundry hookups.
Individually, these requirements may seem reasonable, but together they ensure that most new apartments will be high-end, pricing out the very households most in need. As entry-level options disappear, fewer young families can move in, contributing to an aging population and declining school enrollment. This is especially consequential in today’s housing market, where the median first-time homebuyer is now 38 years old, leaving many households renting for years or even decades. Cities are artificially determining who can afford to live with them.
Plano clearly illustrates this dynamic. For decades, the city has maintained relatively strict zoning and development rules compared to its neighbors. These include rigid setback requirements, minimum parking mandates, limitations on accessory dwelling units, and complex adaptive reuse regulations. Neighboring cities such as Frisco, McKinney, and Prosper have been more accommodating to a range of housing types. Plano’s more restrictive approach has narrowed lower-cost multifamily options, essentially pricing out children.
The demographic consequences have been significant. Plano ISD reports that enrollment peaked at approximately 55,700 students in 2012 but had fallen to about 47,800 by 2024. The median home sale price in Plano rose from roughly $292,000 in 2015 to around $584,000 in 2026. As entry-level housing options have disappeared, fewer young families can afford to move in.
The implications of restrictive housing practices for Plano extend beyond education. By constraining the supply of family-friendly housing, the city limits its future economic dynamism. Younger households bring not only children but also labor force participation, entrepreneurship, and long-term community investment. A city that becomes increasingly inaccessible to this cohort risks stagnation, even if its property values rise in the short term.
HOUSING IS THE AFFORDABILITY ISSUE THAT COULD COST THE GOP IN 2026
Plano’s experience should serve as a cautionary tale for other communities. Suburbs across the country — from Irving, Texas, to Westchester County, New York, to San Mateo County, California, to Scottsdale, Arizona — maintain similar restrictions, including large swaths of single-family zoning, height limits, and density caps.
As housing affordability worsens nationwide, cities that resist adding diverse housing options may find themselves facing unintended consequences. Cities that want to remain vibrant and sustainable must make room for the next generation. Restricting housing may feel like preserving a community, but over time, it can hollow it out.
Julia R. Cartwright is a senior research fellow in Law and Economics at the American Institute for Economic Research. Follow on X: @Econ_Goggles