As the U.S. economy begins its turnaround under President Trump, even with all his efforts, it will take some time to undo the damage the Biden Administration did the last four years. But many cities and states are set to see a slight economic downturn in the year. However, Houston is actually on track for a pretty god year in 2025.
Sparked by growth and economic diversity, Houston is in good shape for the year ahead. That is despite all the fearmongering over tariffs, and Wall Street rolling along like a roller coaster.
Economist Hank Lewis says compared to places like Austin or Dallas; Houston is on a good foot.
"We have many strong industries doing well...our housing is not cheap, but it is affordable compared to other cities," he says.
Austin in particular has seen prices skyrocket in terms of living. It still remains the hot spot for incoming companies looking to move to Texas, but Houston is making up ground in that regard.
Tons of larger corporations have been looking to move their headquarters to the area, and that is not slowing down. Especially as companies continue fleeing Democrat strongholds like California due to their exorbitant costs.
But what makes Houston so great? What puts us in a good spot? We are already one of the most diverse cities in the country ethnically, but we also gain a lot of positive without economic diversity.
"We have the medical center, universities...you have local petrochemical industries, the Port of Houston...and you of course have the space industry as well, Lewis says.
The energy sector is also another big factor with the city being the energy capital of the state, and the country.
There are projections that Houston's Gross Domestic Product (GDP) will increase in 2025, as more American production is driven by the Trump Administration. But there is a difference between nominal GDP growth, and real GDP growth. Where the production comes, and how inflation works out, will determine how much growth we see.
"Sometimes nominal GDP, which does not factor in inflation, can grow, while real GDP can decline...that usually happens when the rate of inflation is higher than the rate of decline, and growth of actual production," says Lewis.
Lewis adds though that our diversity, and cotinued growth, will keep us on the up and up for 2025.