Skip to main content

Data, Insight & Analysis

0
Recent Downloads

Economy at a Glance - April 2023

This edition of Glance examines where Houston’s population growth ranked last year, the various components of that growth, and the Texas Workforce Commission’s revisions to last year’s employment data.
Published on 4/3/23

Population Growth Surges

Metro Houston added nearly 125,000 residents in ’22, ranking second among the nation’s major metros in population growth, according to the Partnership’s analysis of U.S. Census Bureau data. That’s up from ’21 when the lingering effects of COVID limited the region’s gains to just over 75,000. ’21 was the second weakest year for population growth of the past 20 years while ’22 was slightly above the long-term average of 119,000 per year.

The surge in population helps to explain last year’s robust job growth, strong demand for housing, and increased congestion on the region’s roads and freeways. Houston added 176,000 jobs, closed on 108,000 single-family homes, absorbed 21,000 apartment units, and delivered 280,000 new vehicles over period covered by the Census data, i.e., the 12 months ending July 1, 2022.

Houston performed exceptionally well last year considering nine of the nation’s 20 largest metros shed population and five added fewer than 20,000 residents. At cur-rent growth rates, the rankings of the 10 most populous metros are unlikely to shift anytime soon. Houston has a lock on fifth place, is unlikely to catch Dallas-Fort Worth, and is in little danger of losing ground to Washington, DC.

A common misconception is that Houston’s #2 ranking represents 125,000 residents moving to the region. The gains came from two sources: the natural rate of increase and net inmigration. The natural increase reflects the number of births minus deaths in the region. Net inmigration reflects the number of people who moved into Houston minus those who moved out. 

Two-thirds of Houston’s population gains in ’22 came from net inmigration, one-third from the natural increase. The ratio frequently shifts, with inmigration accounting for a larger share of population growth when the region’s economy booms and a smaller share when it struggles.

Net Inmigration

Metro Houston ranked second in net inmigration in ’22. Twelve of the nation’s 20 largest metros had negative in-migration, i.e., more residents moved out than moved into those regions. Chicago, Los Angeles, New York, San Francisco, and St. Louis lost a combined 600,000 residents to outmigration last year. If not for births exceeding deaths in these metros, their overall population losses would have been even greater.

Net migration has two components, domestic and international. Domestic reflects the population moving from within the United States while international reflects the population relocating from abroad. International migration includes ex-pat workers called home from overseas, foreign workers assigned to multinational companies in Houston, military personnel redeployed stateside, international students enrolling at local universities, temporary workers on H1-B and H2-B visas, refugees placed in the city by relief agencies, and immigrants (documented and undocumented) who left their homelands for better lives in America.

Houston ranked third in the nation for international migration last year, behind New York and Miami. All 20 of the nation’s most populous metros benefitted from international migration.

International migration accounted for over half (55.8 percent) of Houston’s net migration last year and well over one-third (38.2 percent) of the region’s overall gains. The flow of foreign-born residents and workers into the region remains essential for the region’s growth.

According to the Census 2021 American Community Survey (the latest detailed demographics available):

  • 24.1 percent of the metro Houston population is foreign-born. 
  • 30.7 percent of the metro workforce was born outside the U.S.
  • Unemployment for Houston’s foreign-born averaged 4.3 percent in ’21 vs. 5.1 percent for the native-born.
  • A ’19 study by the Partnership found the output of foreign-born workers accounted for 30.8 percent of the region’s gross domestic product.

To continue reading, download this report.

Note: The geographic area referred to in this publication as “Houston,” "Houston Area” and “Metro Houston” is the nine-county Census designated metropolitan statistical area of Houston-The Woodlands-Sugar Land, TX. The nine counties are: Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery and Waller.

Key April Takeaways

Here are the facts to know about the Houston region this month
1
April Takeaway #1
Metro Houston added over 124,000 residents last year.
2
April Takeaway #2
The region's population growth ranked second in the nation.
3
April Takeaway #3
Houston created over 145,000 jobs in '22.

Want to learn more? Contact our Research Team:

Patrick Jankowski, CERP
Senior Vice President, Research
713-844-3616

Previous Issues of Economy at a Glance

MAR
2023
U.S. Recession and Houston's Key Indicators
Read Report
FEB
2023
The Year in Review
Read Report
JAN
2023
The U.S. Economy and Houston's GDP Estimates
Read Report
DEC
2022
Recovery in the Oil and Gas Industry
Read Report
NOV
2022
Metro Houston's Job Growth and the Apartment Market
Read Report
OCT
2022
Exploring Population Changes Through the ACS
Read Report
SEPT
2022
Recession? Maybe, Maybe Not
Read Report
AUG
2022
Houston at Mid-Year
Read Report
JUL
2022
The Houston Housing Market, Affordability, and Recent Shifts
Read Report
JUN
2022
Economic Recovery, Population Growth & Global Houston recap
Read Report
MAY
2022
Economic recovery, rising costs & labor force
Read Report
APR
2022
Population growth and employment data
Read Report
MAR
2022
Local Impact of a Global Event
Read Report
FEB
2022
Post-Analysis of 2021 Houston Economy
Read Report
JAN
2022
Omicron, GDP, Employment
Read Report
DEC
2021
2022 Employment Forecast
Read Report
NOV
2021
Job Gains, Real Estate, Exports
Read Report
OCT
2021
Inflation, Employment & Global Innovation
Read Report
SEP
2021
Employment, Oil & Gas, Containerized Exports, and Housing
Read Report
AUG
2021
Delta Variant, Rebounding Travel, Economic Growth and Population Gains
Read Report
JUL
2021
Energy Transition, Recovery Bottlenecks, & the Worker Shortage
Read Report
JUN
2021
Economic Recovery, Multifamily, Population & More
Read Report
May
2021
Housing Boom and Robust Recovery
Read Report
APR
2021
Pandemic Recovery, Tech Workforce
Read Report
MAR
2021
Pandemic Employment Data
Read Report
FEB
2021
Coronavirus Impact and 2021 Outlook
Read Report
JAN
2021
Racial Demographics and Population Shifts
Read Report
NOV
2020
U.S. Recovery, 2021 Outlook
Read Report
OCT
2020
U.S. Recovery, Houston Update
Read Report
SEP
2020
COVID-19 Impact on Economy
Read Report
AUG
2020
Energy Change Over Time
Read Report
JUL
2020
COVID-19 Update, Houston Unemployment
Read Report
JUN
2020
COVID-19 Update, Affected Sectors, Energy
Read Report
MAY
2020
U.S. & Texas Outlook, GDP
Read Report
APR
2020
COVID-19 Update, PMI, Industry Outlook
Read Report
MAR
2020
Economic Impact, Global Outlook, Recession Probability
Read Report
FEB
2020
U.S.-China Trade Deal, USMCA
Read Report
JAN
2020
Houston GDP, Energy, Jobs
Read Report
DEC
2019
Sector by Sector Forecast for 2020
Read Report
NOV
2019
Houston Region Demographic Update 2
Read Report
OCT
2019
Houston Region Demographic Update 1
Read Report
SEP
2019
Houston's Growth Engines
Read Report
AUG
2019
PMI, Commercial Real Estate & Housing
Read Report

More Insight & Analysis

Monthly Update: Inflation

Review the latest data on inflation in the Houston area. 

Monthly Update: Employment

Review the latest data on jobs in the Houston region. 

Monthly Update: Purchasing Managers Index

Review the latest data on this key economic indicator. 

Get more in-depth analysis from the Partnership team with a Membership.
Executive Partners