Houston’s population growth strengthens economic prominence

Houston’s population growth strengthens economic prominence

2024-04-22T11:09:13-04:00April 22nd, 2024|Economy, Houston|

Writer: Andrea Teran

3 min read April 2024 — Houston continues to be a focal point of significant demographic shifts within the United States. With a robust job market, relatively affordable housing, and a diverse cultural landscape, Houston attracts a multitude of residents from across the country and beyond. 

“The influx of people moving to Texas, notably to Houston, Dallas, and Austin, is a testament to its potential. Houston’s energy-driven economy offers new business opportunities, supported by a skilled workforce with an entrepreneurial mindset,” Brian West, managing partner at Forvis in Houston, shared with Invest:. “This spirit, deeply ingrained in the energy industry, propels us toward seeking new avenues for economic and business growth.” 

According to the 2024 Texas Relocation Report by Texas Realtors, during 2022, the Lone Star State witnessed an influx of new residents. Texas attracted approximately 668,000 people from other states in 2022, culminating in a net population gain of nearly 175,000 new residents. Notably, a significant portion of this migration comes from California. Over 100,000 residents of the Golden State moved to Texas in 2022 alone, driven by economic factors like lower housing costs and abundant job opportunities.

According to the Economy at a Glance annual reports by the Greater Houston Partnership (GHP), the Houston-The Woodlands-Sugar Land metro area experienced a resurgence in population growth, adding nearly 125,000 new residents in 2022 and positioning it second among the nation’s major metros. This growth marked a stark improvement from the increase of just over 75,000 in 2021, a year still tainted by the COVID-19 pandemic. A substantial portion of the population increase, approximately two-thirds, was attributed to net in-migration, with the remainder resulting from natural growth (births minus deaths).

The trend of population growth continued into 2023, with Houston adding nearly 140,000 residents. This further solidified its position as a top destination for both domestic and international migrants, closely trailing the Dallas-Fort Worth area. Similar to the previous year, the gains were fueled by strong in-migration and natural increase, although the specific contributions of each component fluctuated slightly with economic conditions.

The Houston metro area itself saw substantial growth, with 139,789 new residents between 2021 and 2022, marking it as one of the nation’s leading metros in population increase according to the U.S. Census Bureau, bringing its total population to 7,510,253. This growth is primarily attributed to net in-migration, which constituted two-thirds of the area’s population gains, alongside natural increase.

A significant trend within Houston’s demographic development is the expansion of its suburbs. While Harris County experienced a net loss in domestic migration, its surrounding counties, notably Montgomery and Fort Bend, saw dramatic increases. Montgomery County recorded the second-highest level of domestic migration in the nation, with over 25,000 new residents in 2023. Similarly, Fort Bend County added nearly 16,000 people.

Harris County stands out for its substantial international migration, which significantly contributes to Houston’s growth. In 2023, Harris County was the second-highest recipient of international migrants in the U.S., with more than 41,500 new residents, only behind Miami-Dade County in Florida. This international influx, representing a broad spectrum of global residents, from students to professional workers, plays a crucial role in the area’s demographic and economic dynamics.

Besides migration, natural increase (births minus deaths) significantly impacts Houston’s population numbers. Harris County reported the highest natural population increase among U.S. counties in 2022 and 2023. This robust natural growth is a testament to the youthful and growing demographic base of the Houston area.

“The Houston-Galveston region is rapidly growing. Our biggest priority is how to continue embracing that growth while properly planning for its long-term success. This includes infrastructure development in our smaller communities that are experiencing a major shift in their economy, and sustainability planning for our more urbanized communities with active industry,” Chuck Wemple, executive director of the Houston-Galveston Area Council (H-GAC) told Invest:. “At the same time, we do not want to lose what made the region a great place to live in the first place. More diverse than our businesses are our residents and communities, and we will always work to enrich that diversity throughout the region.” 

For more information, please visit: 

https://www.houston.org/

https://www.census.gov/

https://www.texasrealestate.com/

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