Its secret, many analysts conclude, lies in sensible restraints on regulations. For example, many cities try to control the pattern of growth through their control of water line construction. But in Houston's suburbs developers set up municipal utility districts, or MUDs. Once a developer has done that, there are few restrictions on which way he can develop.
MUDs are reportedly a big factor in keeping housing costs low.
The American Chamber of Commerce Researchers Association has developed a scale to annually assess housing costs in America's big cities. The lower the number, the lower the costs. Outside of Texas, Los Angeles scored 124.7 and Boston got 214.8. New York's score was a whopping 455.6. Houston is also the only major American city without comprehensive zoning.