Houston, Texas, has undergone a significant transformation in its economic landscape over the past decade, diversifying its economy and emerging as a leader in foreign investment. The city ranked first in the FT-Nikkei list for foreign investment, exporting approximately $176 billion through the Houston/Galveston customs district [1891bac4]. In 2022 alone, Houston attracted $260 million from Asian electric car manufacturers, highlighting its growing role in the renewable energy sector [1891bac4]. Currently, over 200 companies are engaged in renewables, while 100 are focused on energy technology and research and development [1891bac4]. This shift is projected to create around 560,000 jobs in renewables, potentially offsetting the 650,000 fossil fuel jobs that may be lost due to the goals set by the 2015 Paris Agreement [1891bac4].
In addition to its economic diversification, Houston has made strides in the aerospace sector with the launch of the Houston Spaceport by Intuitive Machines in February 2024 [1891bac4]. The Texas Medical Center, recognized as the world's largest medical complex, contributes significantly to the local economy with a GDP of $24 billion [1891bac4]. Furthermore, the city has seen a substantial influx of venture capital, with $2 billion invested in Houston start-ups in 2022 [1891bac4].
Looking ahead, the Greater Houston Partnership forecasts the creation of 71,200 jobs in Metro Houston by 2025, with the professional and technical services and the restaurant and bar sectors expected to gain the most jobs [7efa8ebe]. Patrick Jankowski, chief economist for the Greater Houston Partnership, emphasized that the region will reach a total of 3.5 million payroll jobs by the end of 2025, driven by sectors such as healthcare, construction, government, and restaurants [ec3cf42c]. The economic outlook event held on December 12, 2024, also indicated that inflation is expected to lower to 2 percent of GDP by the end of 2025 [ec3cf42c]. Houston's GDP has seen a remarkable growth of 70% after inflation adjustment, reflecting the region's economic resilience [7efa8ebe].
Demographically, Houston is the nation’s most ethnically diverse metro area, with one in four residents being foreign-born, primarily concentrated in Fort Bend and Harris Counties [da1a64cb]. The median age in Houston was 35.7 years in 2023, younger than the national median of 39.2 [da1a64cb]. The population over 65 is the fastest-growing cohort, adding 354,000 residents in the past decade [da1a64cb]. Homeownership is prevalent, with three in every five Houstonians owning their homes [da1a64cb].
Despite these positive developments, challenges remain. Crime and safety are top concerns for residents, as highlighted in the 2024 Kinder Houston Area Survey, which reported a gun homicide rate of 17.5 per 100,000, nearly three times the national average [1891bac4]. Housing prices have surged post-COVID-19, with the house price to median wage ratio increasing from 3:1 in 2010 to 5:1 by 2021 [1891bac4]. Additionally, only 5% of residents live near a bus stop, with 93% relying on car ownership for transportation [1891bac4]. Infrastructure issues are also under scrutiny, with CenterPoint Energy currently being investigated [1891bac4].
In the broader context of the Texas economy, job growth has continued across most sectors, although it has slowed recently. Texas is expected to contribute significantly to national growth, with a projected annual employment growth rate of 1.64% through 2053, adding approximately 9.1 million jobs [50493373]. The state's population growth is stalling in some areas but increasing overall due to in-migration, with many new residents being in prime working age and possessing in-demand skills [50493373]. Texas's oil and gas production remains crucial for U.S. energy security, and forecasts indicate that these sectors will remain vital long-term [50493373]. However, challenges such as the need for more water, roadways, electricity, and education persist as the state continues to expand in life sciences, investment banking, and technology sectors [50493373].
Overall, Houston's economic diversification and growth in foreign investment position it as a dynamic city with both opportunities and challenges as it navigates its future. Jankowski will present a 'State of the Economy' on January 23, 2025, where he will likely address concerns about potential tariffs and immigration policies under President-elect Donald Trump [ec3cf42c].