Skip to main content

Report: Houston Growth Expected to be Among Strongest in U.S. through '23

Published Jan 02, 2020 by A.J. Mistretta

Astros stadium in Houston

Houston is one of only a handful of major U.S. cities expected to see economic growth over the next three years, according to a new report from Oxford Economics. 

The GDP of both Houston and Dallas are forecasted to grow at an average annual rate of 2.4% between now and 2023, the report finds. That’s second only to San Francisco, where the GDP is expected to increase an average of 2.7% over the next three years. 

Researchers at Oxford Economics credit Texas’ reasonable cost of living and minimal government regulation that’s allowing the state’s major metros to absorb businesses from elsewhere around the country. That environment is also encouraging startups. 

The Oxford Economics analysis projects that nearly two-thirds of the world’s major cities will experience an economic dip in the next two years; the 10 largest global cities are all forecasted to see a decline in GDP. 

The Houston metro GDP increased an average of 1.5% from 2015 to 2019. Oxford Economics forecasts local GDP growth of 1.9% on average over the next two years.

The Partnership forecasts that the Houston region will add 42,300 jobs in the year ahead, led by gains in healthcare, government, food services, and construction. Job losses are anticipated in the energy, retail, and information sectors.

See more Data from the Partnership and get insight into economic indicators from the last year in Economic Highlights
 

Related News

Economic Development

Texas Dominates Business Attraction, Houston Remains a Top Leader

3/1/24
The Houston region has once again ranked third among top U.S. metros for attracting new business, according to Site Selection Magazine’s yearly analysis, while Texas earned its 12th consecutive Governor’s Cup.  “The Governor’s Cups recognize not only the winning governors, but their entire economic development teams, and by extension, the many professionals throughout their states who work every day to attract new investment and retain and grow existing businesses,” said Mark Arend, editor emeritus of Site Selection.  Site Selection identified 1,254 project wins for Texas in 2023, more than doubling the next-highest state, Illinois. With 226 more projects than 2022, Texas saw a 22% increase in projects. The Houston-The Woodlands-Sugar Land MSA won 413 projects, an uptick of more than 150 since 2022. Chicago and Dallas-Fort Worth placed first and second, respectively, in the top U.S. metros category.  "We are excited to see Texas continues to be the leading State for corporate relocations and expansions," said Partnership Vice President of Regional Economic Development Craig Rhodes. "Houston’s ranking as a top three metro further highlights the unique opportunity we have in our region for companies to access diverse talent, critical infrastructure, and the convergence of industries to grow their business on a global scale." Here is a look at a few of the notable project wins in 2023 for the Houston area:  Cart.com, an e-commerce unicorn that returned to Houston from Austin in efforts to scale its business. The move highlighted the value in Houston’s transportation infrastructure and accessibility, as well as its large and diverse talent pool.  Packgene Biotech, a CRO and CDMO company founded in Massachusetts, which broke ground on its 22,000 square feet cGMP manufacturing facility in 2023. This facility will create up to 80 jobs with $20 million invested. They are already in the expansion process to grow the facility to 35,000 square feet. This project will accelerate gene therapy product development by providing a fully integrated one-stop solution for clients.  Sumika Semiconductor Materials, a subsidiary of Sumitomo Chemical, is building a high-purity semiconductor process chemical manufacturing plant in the Houston region. The project includes an investment of $250 million and will create 50 jobs in the region.  SEG Solar, a solar panel manufacturing company, is slated to open its 145,000 square feet Houston facility by mid-2024. The project is projected to create 500 jobs with a capital investment of $60 million. The move reinforces Houston’s status as Energy Capital of the World.   In an interview with Site Selection Magazine, Governor Greg Abbott pointed to the state’s pro-business environment as to why companies keep choosing to relocate or expand their businesses in Texas.  “Industry-leading CEOs cite our pro-growth economic policies — with no corporate income tax and no personal income tax — along with our strong and growing workforce, easy access to global markets, robust infrastructure, and business-friendly regulations, "Abbott said.  The state’s new economic incentives program will be a critical tool in attracting new companies to the region. The Texas Jobs Energy, Technology, and Innovation, or JETI, program, replaces Chapter 313, which sunset in 2022.   Learn more on why companies continue to choose Houston. 
Read More
Economic Development

Bridgeland’s 925-Acre Urban District Taking Shape, Driving Growth in Cypress

2/29/24
A groundbreaking 925-acre urban district situated in the heart of Bridgeland, Cypress’ massive master-planned community, is beginning to take shape as construction commences on its mixed-use development.   Spanning 70-acres, Village Green at Bridgeland Central aims to redefine Houston’s Northwest market, offering more than 28,000 square feet of retail and restaurant space, as well as a 100,000-square-foot H-E-B and 49,000-square-foot sustainable office building dubbed One Bridgeland Green.    Click to expand According to Bridgeland’s website, One Bridgeland Green will be the region’s first mass timber office development. Designed to reduce 20 percent of greenhouse gas emissions and 80 percent of its annual water consumption, the building sets a new standard for the future of eco-friendly workspaces.   Village green will service nearby residents of the district’s already developed apartment complex Starling at Bridgeland, which opened in 2022, and its 150-unit townhome community Highland Homes.   Click to expand Although its urban district is still in the early stages of development, Bridgeland has been steadily evolving since 2003. The 11,500-acre master-planned community has since garnered significant acclaim for its array of residences, schools and abundance of outdoor amenities.   Ranking amongst the top five bestselling master-planned communities in the nation, Bridgeland has witnessed a remarkable surge in new home sales, reaching a 74 percent increase year-over-year, according to real estate consultant firm RCLCO. With this momentum, the community is poised to reach its full build-out potential, accommodating an estimated 70,000 residents in the near future.  As Bridgeland continues to revolutionize living in greater Houston, the community's innovative and family-friendly landscape draws the attention of businesses, developers and new residents, driving substantial growth to the area.   According to Community Impact’s analysis of the U.S. Census Bureau’s American Community Survey, Cy-Fair grew by more than 52,000 residents from 2016-2021, marking a 9.4 percent increase in five years.  To accommodate growth, the Grand Parkway from I-10 to U.S. 290, which opened in 2013, is expected to be widen in 2026, improving mobility. Cy-Fair ISD is also responding to the increasing demand for education services by opening two new schools.   Click to expand As developers add more homesites and mixed-use developments to the area, companies are taking note in hopes of establishing a presence where people can live and work. Last year, Chevron acquired more than 77 acres of undeveloped land in Bridgeland for a possible research and development campus.  “Chevron is attracted to the opportunities Bridgeland has to offer and views this acquisition as a strong addition to our asset portfolio,” Daniel Abate, head of Chevron’s corporate real estate, told the Houston Chronicle.  Discover more about Houston’s neighborhoods and communities.  
Read More

Related Events

Economic Development

State of Education

The Greater Houston Partnership invites you to the State of Education on May 9 at the Royal Sonesta. The success of our region relies on a thriving public education system providing equitable…

Learn More
Learn More
Executive Partners