Greater Houston’s Economy Shows Strength in Housing Stability, Schools and Job Growth
Houston’s economy is sending a mixed but largely encouraging message this summer: the region remains comparatively affordable, homelessness is far below levels reported in other major U.S. metros, students are outperforming statewide averages, and employers continue to add jobs.
Those findings are part of the Greater Houston Partnership's July 2026 edition of The Economy at a Glance: Houston, a report that offers a broader look at how housing, education and employment are shaping daily life across the region.
For residents, the numbers tell a story that reaches well beyond economic rankings. Lower housing costs can help families remain rooted in their neighborhoods. Stronger schools can improve long-term opportunity. A growing job market can provide stability—although not every household is benefiting equally.
Houston’s Low Homelessness Rate Stands Out Nationally
The report’s most striking finding is Houston’s homelessness rate.
Approximately 3,325 people were experiencing homelessness across Fort Bend, Harris and Montgomery counties during the latest regional count. With roughly 6.8 million people living in the three-county area, that equals about five people experiencing homelessness for every 10,000 residents.
Based on the Greater Houston Partnership’s analysis of 2025 HUD Point-in-Time count data, that was the lowest reported rate among the nation’s 20 most populous metropolitan areas. The report notes that Continuum of Care counting practices can vary, with some areas outside Houston counting only sheltered populations.
By comparison, New York recorded 70 people experiencing homelessness per 10,000 residents, followed by Los Angeles at 62, Seattle at 51 and San Francisco at 50. Dallas had eight, while Detroit had seven.
The figures come from the annual Point-in-Time count conducted for the U.S. Department of Housing and Urban Development. Each winter, local organizations count people living in shelters, on streets and in encampments to create an official snapshot of homelessness.
Houston’s result does not mean the region has solved homelessness. Each person counted represents a resident facing housing instability, and the need for shelter, permanent housing, health care and support services remains urgent.
What the data does show is that Houston has moved in a different direction than much of the country.
Since 2011, the local homelessness rate has fallen by more than two-thirds, from approximately 16 people per 10,000 residents to five. Nationally, the rate has climbed since the pandemic and stood near 22 people per 10,000 residents in 2025.
Lower Rents Have Helped, but Affordability Remains Uneven
Houston’s relatively lower housing costs appear to be an important part of that story.
The report found that Houston had the lowest average monthly apartment rent among the major U.S. metros included in the C2ER comparison, at $1,355. Riverside was omitted because it does not participate in the survey, while the New York figure reflects Manhattan rather than the entire city.
Houston’s average also came in below Dallas at $1,508 and Atlanta at $1,500. The gap was far wider when compared with cities including Boston, San Francisco, Miami and Washington, where average rents were more than twice Houston’s level.
That gives Houston an economic advantage. Lower rents can reduce the number of households pushed into crisis by housing costs alone, while also allowing public and nonprofit housing dollars to reach more people.
Still, “less expensive” does not necessarily mean affordable. For lower-income families, seniors, people with disabilities and residents facing unexpected medical or employment disruptions, even Houston’s comparatively modest rents can be difficult to manage.
That distinction is important. The region’s relative affordability has helped, but continued progress will depend on whether housing costs remain within reach as Houston continues to grow.
A Coordinated Housing Strategy Has Changed the Region’s Response
Houston’s progress is also tied to the coordinated housing-first strategy adopted through The Way Home, the region’s Continuum of Care.
Beginning in 2012, local agencies increasingly focused on moving people into permanent housing first, then providing support for health, employment, transportation and other needs.
The approach represented a significant change in how homelessness was addressed. Instead of requiring people to resolve every challenge before qualifying for housing, participating agencies treated stable housing as the foundation for recovery.
The report found that successful exits from emergency shelters, transitional housing, safe havens and rapid rehousing programs increased from roughly 600 in 2021 to nearly 1,900 in 2024.
Chronic homelessness has also declined by more than 75%, falling from approximately 1,900 people in 2011 to fewer than 450 in 2025. Veteran homelessness dropped from more than 1,100 residents to roughly 200, while homelessness among unaccompanied minors fell to nearly zero.
The data is not uniformly positive. The percentage of residents returning to homelessness within two years of entering permanent housing rose from 14.9% in 2022 to 21.2% in 2024.
Although that remains below the 28.7% rate recorded a decade earlier, the increase highlights a growing challenge: helping people secure housing is only part of the work. Keeping residents housed amid rising household costs requires long-term support and continued coordination.
Houston-Area Students Outperform Texas in Reading and Math
The July report also offers a timely look at the region’s schools as families prepare for the 2026–2027 academic year.
Preliminary STAAR results show that 55.8% of Houston-area students in grades three through eight met or exceeded expectations in reading, compared with 54.2% statewide.
In math, 48.3% of Houston-area students met or exceeded expectations, compared with 45.6% across Texas.
Houston-area students were also more likely to reach the state’s highest performance category. In reading, 31.2% achieved the Masters Grade Level standard, compared with 28.7% statewide. In math, 22.9% reached mastery, compared with 20.6% across Texas.
For parents and educators, the broader picture is encouraging but incomplete.
Reading has recovered more quickly from pandemic-era disruption and has moved above pre-pandemic levels. Math remains slightly below its earlier benchmark, reflecting how missed foundational instruction can affect students for several years.
The report found that 28.4% of Houston-area students remained below expectations in math, compared with 21.9% in reading. That suggests many students will continue to need tutoring, intervention and additional classroom support.
Several School Districts Lead—and Others Are Making Strong Gains
Among larger school systems, Friendswood ISD led the region in reading, followed by Barbers Hill ISD and Tomball ISD.
In math, Barbers Hill ISD and Tomball ISD tied for the highest regional performance, with Friendswood ISD close behind.
The report also highlighted districts that have made substantial gains since before the pandemic.
Hempstead ISD recorded the region’s largest improvement in both reading and math. Spring Branch ISD, Needville ISD, Santa Fe ISD and Houston ISD also posted meaningful gains.
Those improvement figures add important context to school rankings. A district may not yet be among the region’s highest performers, but sustained growth can show that academic support, curriculum changes and classroom strategies are beginning to work.
Houston ISD, for example, improved reading performance by 13.8 percentage points between 2019 and 2026 and also posted math gains during a period when both the Houston region and Texas overall lost ground.
Job Growth Continues, Though Not Across Every Sector
The Partnership’s employment data points to continued economic expansion.
Metro Houston had approximately 3.52 million nonfarm payroll jobs in June 2026, an increase of 39,700 jobs, or 1.1%, from the previous year.
Construction was one of the strongest sectors, adding 15,000 jobs over 12 months. Professional and business services gained 12,500 jobs, while health care and social assistance added 6,800.
The growth reflects continued demand in industries closely tied to Houston’s expanding population, infrastructure and business activity.
Other sectors moved in the opposite direction. Mining and logging, information services, finance and insurance, and federal government employment all declined year over year.
For workers, that means the regional economy is growing, but opportunities may vary significantly depending on industry, education, location and experience.
What the Report Says About Houston’s Economy
Taken together, the July findings show a region with several meaningful advantages.
Houston’s lower housing costs have helped protect more households from severe instability. A coordinated homelessness response has moved thousands of residents into permanent housing. Schools are outperforming statewide averages, and employers are continuing to add jobs.
But the report also shows why economic strength cannot be measured by a single ranking.
Housing remains difficult for many low-income residents. Some people are returning to homelessness after being housed. Math recovery remains unfinished. Job growth is uneven across industries.
The Greater Houston Partnership, the organization behind Houston: The Economy at a Glance, represents businesses and regional stakeholders working on economic development, public policy and long-term competitiveness. Its research regularly examines the conditions shaping the 10-county Houston metropolitan area, including Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, San Jacinto and Waller counties.
The July report offers a timely snapshot of a region that continues to grow while working through the pressures that growth creates.
For Houston-area families, the clearest takeaway is that the region has built real momentum—but maintaining it will require continued attention to affordable housing, student recovery, workforce opportunity and the residents who remain most vulnerable.
Stay tuned to My Neighborhood News for continued coverage of the economic, housing and education trends shaping communities across the Houston region.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
