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Partnership Research Releases 2022 Houston Facts

Published Sep 26, 2022 by A.J. Mistretta

Skyline of Downtown Houston

HOUSTON (September 23, 2022) – How does Houston’s economy stack up against other major cities? How does trade with countries abroad affect our economy? Is our innovation ecosystem keeping pace with other major cities? 

Those are just a few of the many questions answered in the 2022 edition of the Partnership’s Houston Facts publication. Houston Facts has presented unvarnished information about the Houston region since 1959, and its predecessor publications—under different names, but with the same objective—date back to 1906. Today, Houston Facts is a concise, comprehensive almanac for the Houston region. 

Here are a few highlights from this year’s edition, developed by the Partnership’s Research team and presented by Fifth Third Bank. 

Here are a few highlights:

Demographics

The Houston region is home to 7.2 million people and had the third largest numeric increase in population of any U.S metro between July 2020 and July 2021, according to the most recent Census figures. Houston is also home to many people who were born outside of the U.S. – nearly one in four Houstonians, or 1.65 million residents, are foreign-born. Learn more about Houston’s demographics on page 8 of the report. 

Cost of Living

When it comes to affordability, Houston is really high on the list. The region is the second most affordable major metro among the nation’s 20 most populous metropolitan areas. Our living costs are over 27 percent below the average of those 20 metro areas, and our overall living costs are 5.9 percent below the average for all U.S. metros. Housing costs are also a standout for Houston – they’re more than 53.7 percent below the average for the nation’s most populous metro areas and 18 percent below the average for all U.S. metros. Learn more about Houston’s cost of living on page 43. 

Economy

Houston has returned to pre-pandemic employment levels. Nonfarm payroll employment topped 3.2 million in July 2022. That’s 59,000 above the previous employment record set in November 2019. The recovery has been uneven though. Twelve sectors have fully recovered their pandemic losses, two sectors are close to full recovery and two sectors in particular are still struggling. Learn which ones on page 13. 

International Business 

Houston’s economy is deeply tied to global trade and foreign investment. The region has trading relationships with more than 200 countries. The Houston/Galveston Customs District handled 269.4 million metric tons in exports valued at $170.4 billion in 2021. Eighty-seven nations have consular representation in the city, ranking Houston’s consular corps third largest in the nation. 

Innovation 

Houston is a thriving hub of digital tech talent, with more than 243,400 tech workers representing 7.9 percent of the region's workforce, according to an analysis by the Greater Houston Partnership. Houston is home to 8,800 tech related firms, including more than 800 venture-backed startups. These companies have received $4.35 billion in venture capital funding over the last five years including $2.02 billion in 2021 alone, a record high for the region. In 2021, the most heavily invested industry for VC funding in Houston was information technology, which received $632.1 million across 64 deals. Health care followed, with $518.4 across 67 deals. Materials and resources came in third, with $426.5 million in funding.

Find out more about education, the energy and life sciences industries, transportation and other facets of Houston in Houston Facts
 

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Economy

Report: Houston's Strong International Ties Better Position Regional Economy for Global Economic Headwinds

5/12/23
HOUSTON — Houston’s trade ties with its global partners have largely recovered from the impacts of the pandemic, according to the Greater Houston Partnership’s latest Global Houston report.  The analysis documents how Houston’s international activity in 2022 continued to set records: The Houston-Galveston Customs District continues to rank first in the country in tonnage handled (exports and imports) with over 382.8 million metric tons. For the first time in history, the Houston-Galveston Customs District ranked first in total value with $372.6 billion, which typically ranks second behind Los Angeles/Long Beach. Exports topped $191.8 billion, well above the previous record of $140.8 billion set in 2021. Foreign direct investment (FDI) is back at pre-pandemic levels and continues accelerating. The Partnership documented 44 business expansions from companies headquartered overseas in 2022, up from 33 in 2021. In 2020, only 13 non-U.S. firms announced plans to expand or relocate operations in the region. International migration surged to 47,400, accounting for the largest share (38%) of the region’s population growth in 2022. International air traffic continues to edge closer to pre-pandemic levels. The Houston Airport System handled 10.4 million international passengers in 2022, up from 7.3 million in 2021 but still below the pre-COVID peak of 12.0 million in 2020.  The Port of Houston set a record for container traffic, handing nearly 3.2 million loaded TEUs (twenty-foot-equivalent units), a 17.9% increase over 2021. “The international metrics demonstrate Houston’s ties global economy continues to strengthen, positioning the region for continued growth despite global economic headwinds,” Partnership Chief Economist and Senior Vice President of Research Patrick Jankowski said. According to the report, the ongoing war in Ukraine, persistent inflation, and rising interest rates are key factors that continue to be speedbumps to growth but are not considered outright obstacles. “Any slowdown caused by macro forces will likely impact Houston only marginally,” Jankowski said. “Houston’s economy will continue to expand, create jobs, and attract new residents to the region.”   Other data included in the report reflects Houston’s influence as a global business hub:  Houston has trading relationships with more than 200 countries. The value of exports via the district has exceeded imports every year since 2013. Over 1,700 foreign-owned firms have an office, factory, distribution, or service center in Houston.  Nearly 150 Houston-headquartered companies operated subsidiaries outside the U.S.  Another section of the Global Houston report provides additional statistics and information about Houston’s international business ties and ranks the region’s top 20 trade partners. The value of goods and services traded increased among all leading partners in 2022, continuing the trend of growth. Top 10 Houston trade partners and the value of trade in 2022:  Mexico -- $32.1 billion, up from $21.6 billion in 2021. China -- $31.9 billion, up from $24.8 billion in 2021.  South Korea -- $24.6 billion, up from $16.2 billion in 2021.  Brazil -- $20.1 billion, up from $16.8 billion in 2021.  Netherlands -- $19.1 billion, up from $13.4 billion in 2021.  United Kingdom -- $16.4 billion, up from $9.9 billion in 2021. India -- $15.7 billion, up from $13.9 billion in 2021. Germany -- $15.0 billion, up from $12.0 billion in 2021. Japan -- $14.4 billion, up from $11.5 billion in 2021. Singapore -- $13.6 billion, up from $5.9 billion in 2021. View the trade profiles report here.  ### Greater Houston Partnership  The Greater Houston Partnership works to make Houston one of the best places to live, work and build a business. As the economic development organization for the region, the Partnership champions growth across 12 counties by bringing together business and civic-minded leaders who are dedicated to the area’s long-term success. Representing more than 950 member organizations and approximately one-fifth of the region’s workforce, the Partnership is the place companies come together to make an impact. Learn more at Houston.org.   CONTACT:           Brina Morales                                                 Director, Communications      bmorales@houston.org       (c) 832-287-5089             
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