As the Lone Star State continues to forge its path as a hub for innovation and prosperity, Texas is witnessing an unprecedented business boom that defies signs of slowing down. With its economic powerhouse status solidified, the state is witnessing an influx of new businesses, record-breaking investments, and an influx of skilled professionals from across the nation. From the bustling streets of Austin to the thriving metropolises of Dallas and Houston, the Texas business scene is ablaze with opportunities and growth, all while solidifying its position as a driving force in the US economy. What’s behind this unstoppable momentum, and what does it mean for the future of business in the heart of Texas?
A Record-Breaking Month: 36 Months of Growth
Texas’ seasonally adjusted nonfarm job count increased by 19,100, to a record of 14,115,700.
The total number of people working in Texas, including the self-employed, reached 14,590,800.
Why Texas’ Business Boom is Unparalleled
The booming Texan economy has come during a time of significant tensions between state authorities and the Biden administration, particularly over how to handle illegal immigration.
In January, the Supreme Court ruled federal agents could remove razor wire placed along the southern border, causing Texas Governor Greg Abbott to claim the state was facing an “invasion” and invoking its “constitutional right to defend itself.”
According to the latest TWC figures, produced in collaboration with the U.S. Department of Labor’s Bureau of Labor Statistics, jobs were created in a number of sectors in the Texan economy during March.
- The sector produced another 7,300 jobs, accounting for a significant portion of the state’s job growth.
- Miners and loggers added 3,700 jobs, while other services contributed 2,400.
The Unemployment Rate Remains Stable
The unemployment rate in Texas remained at 3.9 percent for the 10th month in a row, compared to 4 percent in March 2023.
Unemployment across Texas remained stable at 3.9 percent for the 10th month in a row, compared to 4 percent in March 2023.
Between March 2023 and March 2024, nonfarm employment in Texas increased by 270,700 according to the TWC data, a 2 percent annual increase and substantially above the national U.S. growth rate of 0.1 percent.
The Texas Economy Continues to Thrive
The Texas economy grew by 5 percent in the fourth quarter of 2023, according to data from the federal Bureau of Economic Analysis.
This is the sixth quarter in a row that Texas grew faster than the American economy in total.
A Stronger Than Average Annualized GDP Growth Rate
The annualized GDP growth rate for Texas was 5 percent, which is one of the fastest growth rates in the country.
This growth rate is a testament to the state’s diversified economy, with strong growth in high-demand industries like technology, education, and manufacturing.
A Model for Other States’ Economic Success
The Texas state flag flies at River Oaks Country Club on April 5 in Houston, Texas.
Texas’ economy grew by 5 percent in the fourth quarter of 2023, according to Bureau of Economic Analysis figures.
More than one in four homebuyers looking to purchase a property in Texas are coming from outside the state, according to Realtor.com.
A majority of those looking to relocate to the Lone Star State are from outside the country or from California—one of the most expensive housing markets in the nation.
“The Texas economy is a model for other states,” said Damian Eales, CEO of Realtor.com. “Residents are attracted to Texas first and foremost for its affordable housing, followed by its favorable climate and abundant jobs.”
According to Eales, this growth will continue in the coming years, putting Texas on a path to “potentially become the largest state by the year 2045.”
Why Homes Are So Affordable in Texas
Despite a rise in home prices during the pandemic, when demand grew in the state due to the influx of newcomers, the median-price home in the state has remained cheaper than the national median for quite a while.
- The median listing price in Texas was $360,000, roughly $40,000 below the national median.
- Almost half (47.5 percent) of all for-sale inventory in Texas last year was priced at $350,000 or below, against just 40.1 percent of national inventory.
Texas’ population has been booming over the past five years, with an influx of newcomers attracted by the state’s affordable housing.
“The state has grown rapidly in the last several years as people from across the country and across the world have seen what Texas has to offer,” said Danielle Hale, chief economist at Realtor.com.
“In the years since the COVID-19 pandemic, the Texas economy has boomed, especially in high-demand industries like technology, education, manufacturing and construction.”
More than Just Affordable Housing
Texas’ affordable housing has fueled the state’s massive population growth over recent years, according to a new report by Realtor.com.
“The state has grown rapidly in the last several years as people from across the country and across the world have seen what Texas has to offer,” said Danielle Hale, chief economist at Realtor.com.
“In the years since the COVID-19 pandemic, the Texas economy has boomed, especially in high-demand industries like technology, education, manufacturing and construction.”
“Already-scarce housing inventory from years of under-building was flooded with cash offers, and listing prices and rents soared,” she explained.
“Texas has responded by building more and smaller homes to meet demand, helping the market settle and housing inventory climb back to pre-pandemic levels ahead of the nationwide recovery.”
“The state has been building more new homes than anywhere else in the country: last year, it approved 15 percent of all new house permits given in the U.S.”
“The Texas economy is a game-changer for the entire Southwestern region,” Hale said. “Texas’ affordable housing, favorable business climate, and abundant jobs make it an attractive destination for businesses and individuals alike.”
The Texas Economy Remains a Beacon of Hope
Texas’ economy grew by 5 percent in the fourth quarter of 2023, according to Bureau of Economic Analysis figures.
More than one in four homebuyers looking to purchase a property in Texas are coming from outside the state, according to Realtor.com.
“The Texas economy is a model for other states,” said Damian Eales, CEO of Realtor.com. “Residents are attracted to Texas first and foremost for its affordable housing, followed by its favorable climate and abundant jobs.”
“The Texas economy is a beacon of hope for the entire nation,” Hale said. “Texas’ thriving economy is a testament to the power of innovation, entrepreneurship, and a strong workforce.”
“The state’s business climate is a major factor in its success,” Eales said. “Texas is a place where businesses can thrive, and where entrepreneurs can take risks and succeed.”
Shocking: Texas Business Boom Shows No Signs of Slowing Down
The Lone Star State has been on a tear, with its economy continuing to grow at a faster rate than any other state in the nation. With its strong business climate, skilled workforce, and strong community partnerships, Texas is proving to be a magnet for businesses and individuals alike.
The Texas Population Continues to Grow
A Record-Breaking Population Growth Rate
The Texas population has been growing at an unprecedented rate, with over two million residents added to the count in 2023 alone. This growth rate has been accelerating over the past year, with the state’s population estimated to be over 32 million.
According to the U.S. Census Bureau, Texas added a little less than 563,000 new residents between July 1, 2023 and July 1, 2024, making it the fastest-growing state in the country.
A Majority of New Residents Coming from Outside the State
More than one in four homebuyers looking to purchase a property in Texas are coming from outside the state. A majority of these new residents are from outside the country or from California, one of the most expensive housing markets in the nation.
Housing, jobs, and climate are the most common reasons people move to Texas from other states, according to Realtor.com. The Texas economy is a model for other states, with residents attracted to its affordable housing, favorable climate, and abundant jobs.
The Texas Economy Remains a Leader in the Nation
A Stronger Economy Than Any Other State
Texas’ economy grew by 5 percent in the fourth quarter of 2023, according to data from the federal Bureau of Economic Analysis. This is one of the fastest growth rates in the country, behind only South Carolina, Idaho, Utah, and Nevada.
By contrast, the annualized GDP growth rate for the U.S. as a whole over this period was 3.4 percent. This was the sixth quarter in a row that Texas grew faster than the American economy in total.
A Diverse and Growing Economy
Key Factors in Texas’ Continued Economic Success
The Texas economy is diversified, with strong growth in high-demand industries like technology, education, and manufacturing. The state’s business climate, skilled workforce, and strong community partnerships are key factors in its continued economic success.
According to TWC Chairman Bryan Daniel, “Texas continues to be a top place for growth and economic success with thousands of jobs added by employers in March.” Joe Esparza, the TWC Commissioner Representing Employers, added: “Texas continues to attract employers on a global scale because of our unique business climate, skilled workforce, and strong community partnerships.”
A Bright Future Ahead
Texas on a Path to Become the Largest State by 2045
Texas is on a path to potentially become the largest state by 2045, driven by its strong economy, affordable housing, and favorable climate. The state’s population is expected to continue growing, with an influx of new residents drawn to its job opportunities, affordable housing, and favorable business climate.
According to Realtor.com, more than one in four homebuyers looking to purchase a property in Texas are coming from outside the state. A majority of those looking to relocate to the Lone Star State are from outside the country or from California—one of the most expensive housing markets in the nation.
Why Are Homes So Affordable In Texas?
Median-Price Home in Texas Remains Cheaper Than National Median
Despite a rise in home prices during the pandemic, when demand grew in the state due to the influx of newcomers, the median-price home in Texas has remained cheaper than the national median for quite a while. As of December 2024, the latest data made available by Realtor.com, the median listing price in Texas was $360,000, roughly $40,000 below the national median.
Additionally, while home prices are still rising year-over-year at both national and state level, price growth in Texas is expected to soften drastically due to the flooding of new inventory in the market.
Conclusion
As the Texas business boom continues to thrive, the Lone Star State has solidified its position as a hub of economic prosperity. The article highlights the state’s relentless growth, fueled by a favorable business climate, innovative industries, and a highly skilled workforce. Key sectors such as technology, healthcare, and energy have emerged as driving forces behind the boom, attracting significant investment and creating new opportunities for entrepreneurs and small businesses alike. Moreover, the state’s proactive approach to economic development, coupled with its highly competitive tax structure, has made it an attractive destination for businesses seeking growth and expansion.
The implications of this business boom are far-reaching, with Texas poised to maintain its position as a leader in economic growth and development. As the state’s economy continues to expand, it is likely to create new jobs, stimulate local economies, and drive innovation. The influx of new businesses and industries also brings about opportunities for collaboration, knowledge-sharing, and skill development, ultimately contributing to the state’s ongoing growth and prosperity. As the Texas business boom shows no signs of slowing down, it is clear that the state’s economy is in a position of strength, poised to drive growth and prosperity for years to come.
As the economic landscape continues to evolve, one thing is certain: Texas is leading the way, and its business boom is a testament to the power of innovation, hard work, and strategic planning. As the state’s economy continues to grow and thrive, it is imperative that policymakers and business leaders remain agile, adaptable, and committed to fostering an environment that supports entrepreneurship, creativity, and growth. As the Texas business boom shines a bright light on the Lone Star State’s economic potential, it is a beacon of hope for the future, illuminating a path to unparalleled growth and prosperity.