March 2025 Edition

The Greater Houston Partnership is an economic development organization in Houston, Texas. They serve as a a gathering place for community minded business leaders who want to be involved in the positive growth and influence Houston’s economic trajectory. Below are some highlights from the March edition of the Greater Houston Partnership’s Economy at a Glance. Download the full report below.

Download Economy at a Glance Report

GDP BY INDUSTRY

• Five industries – manufacturing, professional/business services, real estate, government, and healthcare/ education – are the leading drivers of this growth. Together, they made up more than 50 percent of Houston’s GDP in ’23.
• Compared to the U.S. overall, manufacturing and professional/business services make up larger shares of Houston’s GDP, while real estate, government, and healthcare/education play a comparatively smaller role.

TEXAS BUSINESS UPDATE

• New survey results from the Federal Reserve Bank of Dallas (i.e. the Dallas Fed) show that Texas business executives in key industries are more optimistic about the future than they were 12 months ago. In three separate industry surveys, a growing share of executives report that their company’s outlook has improved. Between March ’24 and February ’25, the share of executives reporting an improved company outlook jumped from 13.1 to 19.2 percent in manufacturing, from 12.6 to 19.1 percent in services, and from 7.4 to 16.0 percent in retail.

KEY ECONOMIC INDICATORS

• Construction — Dodge Data & Analytics reports that $43.8 billion in construction contracts were awarded in the Houston area in ‘24.
• Foreign Trade — Foreign trade through Houston-area ports was valued at $286.0 billion in ’24 according to the U.S. Census Bureau. This represents a 2.5 percent increase over ’23, but a slight decrease from the record high of $296.7 billion set in ’22.
• Inflation — Inflation, as measured by the Consumer Price Index for all Urban Consumers (CPI-U), rose 3.0 percent nationwide over the 12 months ending in January ’25.
• Multifamily — The multifamily market in metro Houston was stable in January ‘25, with modestly increasing occupancy and rents and declining construction compared to last year.

Source: Greater Houston Partnership