The U.S. Bureau of Economic Analysis (BEA) typically releases Gross Domestic Product (GDP) estimates each December detailing the total dollar value of goods and services produced by U.S. metro areas in the prior year. While BEA discontinued its metro-level estimates in ’25, it continues to publish county-level data. Using those county figures, the Partnership has produced GDP estimates for the broader Houston metro area in ’24. Although calculation methods have changed, analysis should not be materially affected.

Metro Houston’s GDP reached $758.3 billion in ’24, surpassing three-quarters of a trillion dollars in real (inflation-adjusted) terms for the first time on record. That milestone caps off several years of exceptional growth, especially following the COVID-19 pandemic.

Expansion was modest coming out of the fracking bust a decade ago, with real GDP averaging a 1.5 percent annual growth rate in the back half of the ’10s. Growth accelerated sharply after the pandemic, averaging 5.1 percent annually during the past four years. While expansion has cooled a bit, GDP still rose 4.1 percent in ’24, well above the national rate of 2.8 percent.
Houston’s economy is not just growing faster than the nation on average; it is also growing faster than nearly all its peer metros. Over the previous two years of available data, Houston’s real GDP grew by 10.6 percent from a baseline of $685.6 billion in ’22. That ranks second among the top 20 largest metro economies, just behind Seattle’s 10.7 percent gain. In absolute terms, Houston added $72.6 billion in output during that time, also second, trailing only New York’s $77.7 billion increase.

That rapid pace of growth has lifted Houston to become the sixth-largest metro economy in the nation. Houston moved ahead of Washington, D.C. in ’24, producing $9.1 billion more in economic output than the nation’s capital. Houston is now one of only six U.S. metros with annual output exceeding three-quarters of a trillion dollars. Of the five ranked higher, four (New York, Los Angeles, Chicago, and Dallas) benefit from larger populations, while one (San Francisco) is boosted by the nation’s largest concentration of tech firms.

GDP by Industry

Five sectors—manufacturing, professional services, real estate, government, and health care/education—were leading economic engines. Together, they generated over half of the region’s economic output in ’24. The BEA withheld regional wholesale trade data for the year, but past trends indicate it was also likely a major contributor.

Manufacturing and professional services are clear areas of competitive strength. Each generated more than $100 billion in output in ’24, making them Houston’s two largest sectors. Both command a larger share of the local economy than they do nationally. Manufacturing stands out in particular, representing 16.7 percent of Houston’s total output compared to 9.8 percent for the nation. Real estate, government, and health care/education remain essential pillars of the regional economy, but they comprise smaller shares of output relative to the national averages.