Skip to main content

Houston Region May Account for Majority of Economic Gains in Texas

Published Nov 15, 2019 by A.J. Mistretta

houston skyline

Houston's economy has been consistently growing at a steady pace, and one expert says if it continues, the area could account for as much as 30% of the economic gains in Texas over the next 25 years. 

That’s according to a new analysis from Texas economist Ray Perryman. Based on current expectations, real gross product in Houston could grow as much as 3.13% annually - or more than 75% - through 2045, which would add more than $667 billion to the state’s economy. That’s more than any other Texas metro, with the Dallas region expected to make up 24% of growth, followed by Austin at 9% and San Antonio at 7%. 

Perryman’s report also forecasts employment will grow by 1.7 million jobs for a total of 4.9 million by 2045. “The most significant job gains in the area are projected to be in the services sector, with employment expanding by 2.14% annually. Growth in output will be led by manufacturing at a 3.83% annual pace, followed by information at 3.66%,” according to the report. 

Total personal income in the Houston region is expected to increase 3.35% to $846.5 billion. 

Nearly 73% of Texans live in the state’s largest metro regions. That percentage has been steadily rising in recent decades. Those large metro areas drive overall growth in the state economy, accounting for eight out of every 10 new jobs and about $8 out of every $10 in new output (real gross product) over the long-term horizon, according to the report. 

Get the latest Houston area employment figures and more about the local economy
 

Related News

Economic Development

Houston to Become Home to the Nation’s Largest Urban Solar Farm

1/20/21
In another step towards Houston growing its Energy 2.0 ecosystem and leading the energy transition, last week the Houston city council unanimously approved the lease of 240 acres of city-owned land in the Sunnyside neighborhood to Sunnyside Energy, LLC, a subsidy of Wolfe Energy. The Sunnyside Solar Project, an innovative public-private partnership, is expected to be completed and operational by the end of 2022. It will be the largest brownfield solar installation in the nation. "We applaud the actions of Mayor Turner and the City Council in taking this significant step. It is a strong vote of confidence for this impactful project,” Dori Wolfe, Managing Director of Sunnyside Energy LLC said in a recent press release. The project will be anchored by a 50-megawatt ballasted solar array that will generate enough energy to power 5,000 homes and offset 120 million pounds of CO2 each year. "We are the energy capital of the world, and we’re now seeking to lead in the energy transition," Mayor Sylvester Turner told the Houston Chronicle.  As part of the City's Climate Action Plan and Complete Communities Initiative, the Sunnyside Solar Project contains sustainability and resilience initiatives, as well economic development components, including educational attributes and promises to train and employ local labor.  The project will also transform an abandoned landfill that has been a challenge for the Sunnyside community for over 50 years. “The Sunnyside landfill has been one of Houston's biggest community challenges for decades, and I am proud we are one step closer to its transformation," said Mayor Turner in the press release. "I thank the Sunnyside community because this project would not have come together without its support. This project is an example of how cities can work with the community to address long-standing environmental justice concerns holistically, create green jobs and generate renewable energy in the process.” Learn more about how Houston is leading the energy transition, Energy 2.0 efforts and Houston innovation.
Read More

Related Events

Economic Development

Business Beyond Borders: COVID-19 Supply Chain Wake-Up Calls for Reshoring Now - Part 1

This special two-part webinar dives deep on COVID-19's impact on supply chains and the wake up call for reshoring COVID-19 has revealed deadly shortages of essential products due to 90 to 95% dependence on…

Learn More
Learn More
Executive Partners