Editor’s note: In its “Economy at a Glance” report for November, the Greater Houston Partnership – the regional chamber of commerce – draws on the latest American Community Survey data from the U.S. Census Bureau to show how Greater Houston measures up to its peer metros. The main body of the report is presented here by permission.

In October, the Partnership explored how the region’s demographic and economic profile has evolved over the past decade, drawing on newly released American Community Survey (ACS) data for 2024 from the U.S. Census Bureau. In short, the region has grown more diverse and better educated while aging more slowly than the nation overall. Additionally, the share of foreign-born residents has increased, with those born abroad now accounting for more than one in four Houston residents.

This month, the Partnership uses the latest ACS data to compare Houston with the nation’s 20 largest metro areas, to see how the region stacks up. The results highlight the region’s strengths, shed light on its challenges, and underscore Houston’s capacity for continued progress and growth.

Worker Earnings

The median worker in greater Houston earned $45,984 per year in 2024, placing the region 17th among the nation’s 20 most populous metropolitan areas. On the surface, that figure suggests the typical Houston worker is worse off than counterparts in most other large metros, but the comparison does not account for regional differences in the cost-of-living.

According to the Council for Community and Economic Research (C2ER) Cost of Living Index (COLI), Houston was the second-most affordable major metro in 2024, with overall costs falling 5.8% below the U.S. urban average. When wages are adjusted to reflect what they would be if living costs matched the national average, the typical Houston worker’s purchasing power rises to $48,815 per year. That is enough to propel Houston to the Number 6 spot, near the top of the list.

Many of the nation’s largest coastal metros, such as New York and Los Angeles, drop sharply in the rankings once cost-of-living differences are taken into account. Although workers in those regions tend to earn higher nominal wages, their earnings are quickly eroded by steep housing, transportation, and everyday living costs. The result is that the typical worker in a high-cost coastal market has far less real purchasing power than a worker in Houston, underscoring how affordability is as critical as income in shaping a worker’s overall economic well-being.

Race and Ethnicity

Houston is among the most racially and ethnically diverse metro regions in the United States. As has been the case since the turn of the century, no single racial or ethnic group makes up a majority of the local population. Instead, Houston’s demographics reflect a broad mix of people that bring an inclusive character to its culture.

One way to measure a region’s diversity is through the Simpson Diversity Index, which shows the odds that two randomly selected residents in a region will belong to different racial or ethnic groups. Dividing the population into Hispanic or Latino residents of any race and non-Hispanic White, Black, Asian, and other residents (including those of two or more races), Houston ranks fourth for diversity, with a 71.1% chance that any two random people will have different racial or ethnic backgrounds.

The three metros ranking above Houston are only slightly more diverse. In top-ranked San Francisco, the odds that two random residents belong to different groups are just 2.8 percentage points higher than in Houston.

In contrast to Houston, a single racial/ethnic group forms the majority of the population in the bottom nine metros on the list. In eight (Seattle, Phoenix, Philadelphia, Tampa, Denver, Boston, Detroit, and Minneapolis), the majority is non-Hispanic White, while in Riverside, Hispanic or Latino residents make up most of the population.

Foreign-Born Population

More than one-in-four Houstonians (25.4%) were born outside the United States. That is well above the one-in-seven (14.8%) nationally. Among the nation’s 20 largest metro areas, only Miami, Los Angeles, San Francisco, and New York have higher shares of foreign-born residents, while metros such as Minneapolis, Detroit, and Philadelphia have shares that are less than half of Houston’s. The large share of foreign-born residents underscores Houston’s global and welcoming character.

Age

Houston has the youngest population of any major U.S. metro. With a median age of 35.7 years, compared to 39.2 years nationally, roughly half of all Houstonians are still in the formative stages of their lives and careers. The region’s youthful profile sets it apart from most large metros, where aging populations are beginning to reshape local economies and labor markets.

With 25.4% of its population under the age of 18, the highest share among major U.S. metros, Houston stands out for having a vast pool of young talent that will enter the workforce in the years ahead. This deep bench of future workers will sustain the region’s economic growth, support local industries, and keep the region vibrant as older generations begin to retire. A young population also fuels demand as more residents enter their household-formation and wealth-building years, while fostering a community that’s open to new ideas and economic change – key ingredients for continued growth and innovation.

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

Find the full “Economy at a Glance” report at houston.org/houston-data/economy-at-a-glance-november-2025. Find the recently released ACS data at census.gov/programs-surveys/acs/news/data-releases/2024/release.html.