Houston booms as No. 2 U.S. metro for new home construction

Construction Boom

Dallas-Fort Worth ranks first, with Houston second. Courtesy photo

Driven by population growth, more residential rooftops are popping up across Houston and the rest of Texas than anywhere else in America.

Using data from the U.S. Census Bureau and Zillow, Construction Coverage found 65,747 new residential units were authorized in greater Houston in 2024. That figure landed Houston in second place among major metro areas for the total number of housing permits, including those for single-family homes, apartments, and condos.

Just ahead of Houston was the Dallas-Fort Worth Metroplex, which took first place with 71,788 residential permits approved in 2024. In third place was the country’s largest metro, New York City (57,929 permits).Elsewhere in Texas, the Austin metro ranked sixth (32,294 permits), and the San Antonio metro ranked 20th (14,857 permits).

Construction Coverage also sorted major metro areas based on the number of new housing units authorized per 1,000 existing homes in 2024. Raleigh, North Carolina, held the No. 1 spot (28.8 permits per 1,000 existing homes), followed by Austin at No. 2 (28.6), DFW at No. 3 (22.2), Houston at No. 4 (21.6), and San Antonio at No. 13 (13.6).

A Newsweek analysis of Census Bureau data shows building permits for 225,756 new residential units were approved in 2024 in Texas — a trend fueled largely by activity in DFW, Houston, Austin, and San Antonio. That put Texas atop the list of states building the most residential units for the year.

Through the first eight months of last year, 145,901 permits for new residential units were approved in Texas, according to Census Bureau data. That’s nearly 80,000 permits shy of the 2024 total.

Among the states, Construction Coverage ranks Texas sixth for the number of residential building permits approved in 2024 per 1,000 existing homes (17.9).

Extra housing is being built in Texas to meet demand spurred by population growth. From April 2020 to July 2024, the state’s population increased 7.3 percent, the Census Bureau says.

While builders are busy constructing new housing in Texas, they’re not necessarily profiting a lot from homebuilding activity.

“Market conditions remain challenging, with two-thirds of builders reporting they are offering incentives to move buyers off the fence,” North Carolina homebuilder Buddy Hughes, chairman of the National Association of Home Builders, said in a December news release. “Meanwhile, builders are contending with rising material and labor prices, as tariffs are having serious repercussions on construction costs.”

Only Dallas surpasses Houston for retail construction right now. Getty Images

Houston booms as No. 2 U.S. market for retail construction in 2025

Construction Zone

Get ready for a gigantic cartload of new shopping opportunities in Houston. A new report indicates the equivalent of 21 Walmart supercenters is under construction in the region.

The report, published by commercial real estate services provider Lee & Associates, says Houston has nearly 3.9 million square feet of retail space under construction, making it the second most active market for new retail space in the U.S.

To put that in perspective, given the average Walmart supercenter measures 182,000 square feet, the 3.9 million-square-foot total would work out to 21 new supercenters being built in the region.

Dallas-Fort Worth is by far the most active U.S. market for new retail space; DFW leads more than 60 U.S. retail markets with nearly 7.15 million square feet of space under construction. The amount of retail space going up in DFW represents 15 percent of all retail space under construction in the more than 60 U.S. markets tracked by Lee & Associates.

Houston and Austin aren’t too far behind Dallas-Fort Worth, though.

Third-ranked Austin area has more than 3.4 million square feet of retail space being built.

What’s behind the surge in retail construction across Texas? Population growth.

Data recently released by the U.S. Census Bureau shows Houston was the second-fastest-growing metro from 2023 to 2024. DFW was the country’s third-fastest-growing metro from 2023 to 2024, based on the number of new residents, and Austin landed at No. 13.

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This article originally appeared on CultureMap.com.

First phase of the RAD Center opened in spring 2024. Courtesy photo

$44 million mass timber project at UH slashed energy use in first year

Building Up

The University of Houston has completed assessments on year one of the first mass timber project on campus, and the results show it has had a major impact.

Known as the Retail, Auxiliary, and Dining Center, or RAD Center, the $44 million building showed an 84 percent reduction in predicted energy use intensity, a measure of how much energy a building uses relative to its size, compared to similar buildings. Its Global Warming Potential rating, a ratio determined by the Intergovernmental Panel on Climate Change, shows a 39 percent reduction compared to the benchmark for other buildings of its type.

In comparison to similar structures, the RAD Center saved the equivalent of taking 472 gasoline-powered cars driven for one year off the road, according to architecture firm Perkins & Will.

The RAD Center was created in alignment with the AIA 2030 Commitment to carbon-neutral buildings, designed by Perkins & Will and constructed by Houston-based general contractor Turner Construction.

Perkins & Will’s work reduced the building's carbon footprint by incorporating lighter mass timber structural systems, which allowed the RAD Center to reuse the foundation, columns and beams of the building it replaced. Reused elements account for 45 percent of the RAD Center’s total mass, according to Perkins & Will.

Mass timber is considered a sustainable alternative to steel and concrete construction. The RAD Center, a 41,000-square-foot development, replaced the once popular Satellite, which was a food, retail and hangout center for students on UH’s campus near the Science & Research Building 2 and the Jack J. Valenti School of Communication.

The RAD Center uses more than 1 million pounds of timber, which can store over 650 metric tons of CO2. Aesthetically, the building complements the surrounding campus woodlands and offers students a view both inside and out.

“Spaces are designed to create a sense of serenity and calm in an ecologically-minded environment,” Diego Rozo, a senior project manager and associate principal at Perkins & Will, said in a news release. “They were conceptually inspired by the notion of ‘unleashing the senses’ – the design celebrating different sights, sounds, smells and tastes alongside the tactile nature of the timber.”

In addition to its mass timber design, the building was also part of an Energy Use Intensity (EUI) reduction effort. It features high-performance insulation and barriers, natural light to illuminate a building's interior, efficient indoor lighting fixtures, and optimized equipment, including HVAC systems.

The RAD Center officially opened Phase I in spring 2024. The third and final phase of construction is scheduled for this summer, with a planned opening set for the fall.

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This article originally appeared on EnergyCapitalHTX.com.

Eli Lilly is looking to build an active pharmaceutical ingredient manufacturing facility at Generation Park. Rendering courtesy of McCord

Pharmaceutical giant looks to bring $5.9 billion facility to Houston

in the works

Pharmaceutical company Eli Lilly and Company is looking to build a $5.9 billion active pharmaceutical ingredient (API) manufacturing facility in Houston, according to a recent filing with the state of Texas.

The proposal states that the project plans to employ 604 full-time direct employees at the site upon ramp-up completion. These would include operations technicians, production specialists, maintenance support, quality control/assurance, engineering, administration, and management. Construction is projected to begin in 2026, with a completion target of 2030 and commercial operations beginning in 2031.

If completed, Lilly would purchase 236 acres at Houston’s Generation Park from McCord Development, the commercial development’s owner. The purchase would include multiple buildings, outdoor facilities, infrastructure buildout, and equipment installation.

This proposed Texas plant would be part of Lilly’s $27 billion effort to expand its U.S. production capacity, which was announced in February and includes construction on four new facilities in America. Lilly has previously referred to the plants as “mega sites.”

"This represents the largest pharmaceutical expansion investment in U.S. history," Lilly CEO David Ricks said during the February news conference.

The company has applied for school tax abatements under the new Texas Jobs, Energy, Technology, and Innovation program, according to reports from the Houston Business Journal. This incentive program allows school districts to limit the taxable value of a property for a portion of school taxes, which could save companies millions of dollars on a large portion of property tax bills. It also gives a 10-year tax cut for new manufacturing and development facilities, as long as there is localized job creation.

Houston Intercontinental Airport's Terminal D expansion and renovation project is nearing completion. Photo courtesy of Houston Airports

Houston Intercontinental Airport's innovative upgrades ready for takeoff

coming soon

After almost five years of construction, passengers heading out of Bush Intercontinental Airport on October 22 will be the very first to experience the expanded, upgraded, and stylish Terminal D-West Pier, an expansion of the existing Terminal D.

The new terminal is part of a broader initiative, the IAH Terminal Redevelopment Program (ITRP), a $1.458 billion project aimed at modernizing the airport's international travel capabilities. ITRP is the single largest capital improvement project developed by Houston Airports and include the refresh of the existing Terminal D, completed in 2023; the expansion of Terminal D with a new D-West Pier, which will be completed this fall 2024; and a new International Central Processor, slated for winter of 2024 and summer of 2025. More than 3,000 people spent more than one million hours on the construction project.

Terminal D-West Pier features six new gates — D1 through D6 — that can simultaneously accommodate wide-body aircraft or converted to accommodate 10 narrow-body airplanes. The expanded terminal with its new capabilities supports increasing demand from passengers and airlines and should enhance the overall travel experience.

In addition to adding 160,000-square-feet, the new wing also boasts eight new, Houston-inspired works by local artists. Those kind of details are why the Houston airport system won Best Airport Art & Entertainment Program in the prestigious Skytrax awards.

The airport's 250 newly-hired employees will work among 16 new retail and dining concessions concepts in the Terminal D-West Pier. Passengers can dine at Houston Supply Co., which opened last month. Local restaurants The Kitchen and The Annie, along with popular national brands Popeyes, Einstein Bros. Bagels, Jamba Juice, Be Relax, Jetero Market, Semi-Sweet Confectionary, and a Lego Store will open for business on October 22.

The new wing also boasts eight new, Houston-inspired works by local artists. Photo courtesy of Houston Airports

"We are focused on improving the overall passenger experience at the airport — from parking and traffic to providing modern terminals with the right amenities. This project is a major investment in our city's future," Houston Mayor John Whitmire said in a statement. "The newly expanded international terminal enhances Houston's reputation as a world-class city and provides a boost to our economy, supporting jobs and attracting more visitors from around the globe."

The new terminal offers a host of other amenities designed to make passengers' experiences more comfortable. They include a mother's room, a sensory room, a child's play area, and expanded men's, women's, and family restrooms. The restrooms utilize smart technology sensors that trigger soap and water. Door locks alert to whether a restroom stall is vacant or occupied and soft LED lighting accentuates floor-to-ceiling photography spotlighting Houston's natural beauty.

The new wing has 16 new retail and dining concessions concepts. Photo courtesy of Houston Airports

An International Arrivals corridor provides views of the airfield, the concourse, and large-scale photography inspired by Houston.

More than 500 modern and comfortable seats, including chairs, cushioned benches, and cozy loungers, featuring cup holders and charging capabilities, are present inside the terminal.

"We are excited to share this milestone with the residents of Houston," said Jim Szczesniak, director of aviation for Houston Airports. "The opening of the Terminal D-West Pier is a testament to the hard work and dedication of our team and our partners. This world-class facility will provide a seamless and efficient travel experience for millions of passengers each year. The new pier will provide the necessary capacity so that Houston can continue to attract more nonstop flights to cities around the globe."

New features include a mother's room, a sensory room, a child's play area, and expanded men's, women's, and family restrooms. Photo courtesy of Houston Airports

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This article originally ran on CultureMap.

Proactively engaging in advocating for opportunities within the industry across all job levels is essential to guaranteeing a consistent influx of skilled workers, meeting the growing construction demands of both our state and nation. Photo via Getty Images

Expert: Addressing skilled labor needs in Houston — including the role technology plays

guest column

The construction industry in the U.S. is experiencing a substantial demand for skilled workers. There are over 438,000 job openings, and this demand is projected to increase, aiming to attract over half a million workers to meet the upcoming labor needs.

The urgency is heightened as a significant percentage — more than 40 percent — of the existing workforce is expected to retire within the next eight years.

To top it off, Texas is the fastest growing state with more than nine million new residents between 2000 and 2022. With a growing population, the requirement for robust infrastructure, encompassing various sectors like transportation, health care, education, and residential development, continues to escalate. Encouraging careers in construction among the younger generation becomes vital for everyone, no matter their industry, to meet these demands and bridge the deepening skills gap.

Viable Career Path: Attracting the next wave of construction talent involves dispelling misconceptions about the industry. Many young individuals might not realize the breadth of opportunities available in construction beyond traditional manual labor. I personally gained interest and experience in the industry at a young age before navigating through a few IT careers, and then landed back in construction and worked my way up, which exemplifies the diverse career paths within the industry.

Education and training play a pivotal role in molding the future workforce. Highlighting that formal education isn't the sole path to success, apprenticeships and on-the-job training programs emerge as excellent alternatives, providing hands-on learning experiences while earning a wage. Collaborating with educational institutions and organizations at an early stage can introduce students to the industry's diverse career avenues.

As with every industry, diversity encourages innovation. Business leaders who intentionally recruit from underrepresented groups, including women and minorities, within the industry will reap countless benefits.

Innovative Technologies: Showcasing the innovative and technological aspects of the industry, such as precision tools, drone technology, AI, and virtual reality, underscores the creative and forward-thinking nature of construction careers. The construction industry continues to evolve and become technologically advanced. The need for cutting-edge individuals who possess construction skills with an understanding of technical innovations will transform the industry.

Stability: Highlighting the industry’s stability, competitive compensation, and the promising opportunities for career growth can further attract potential candidates. Advocating for stringent safety measures and emphasizing the importance of sustainable building practices introduces an added layer of social responsibility, capturing the attention of those committed to ensuring a secure work environment.

Ultimately, the collective efforts of the current workforce and today’s business leaders are pivotal in addressing the imminent skills gap that stands to affect us all. Proactively engaging in advocating for opportunities within the industry across all job levels is essential to guaranteeing a consistent influx of skilled workers, meeting the growing construction demands of both our state and nation.

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Randy Pitre serves as the vice president of operations for Skanska USA Building’s North Texas and Houston building operations.

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5 Houston deep tech startups pushing the boundaries of their industries

meet the finalists

Houston has long been at the forefront of innovation, from NASA’s Johnson Space Center to its startup ecosystem using technology to disrupt industries.

As part of the 2026 Houston Innovation Awards, our Deep Tech Business category will honor an innovative startup providing technology solutions based on substantial scientific or engineering challenges, including those in the AI, robotics and space sectors.

Five deep tech companies have been named finalists for the 2026 award.

Read more about these businesses, their founders and their breakthrough technologies below. The 2026 winners will be announced on InnovationMap.com in mid-November.

Casimir

Battery tech startup Casimir develops semiconductor chips that produce continuous electrical power straight from the quantum vacuum, without the need for a battery, cord or external charge source. The company is targeting commercialization for its first-generation MicroSparc chip by 2028.

Harold “Sonny” White founded Casimir in 2023 after nearly two decades at NASA. The company emerged from stealth with a $12 million seed round in 2026. It was also awarded an STTR Phase I contract from the U.S. Space Force's SpaceWERX to support the development of the company's solid-state generator for potential use by the Department of the Air Force earlier this year.

FocisAI

Artificial intelligence startup FocisAI helps refinery owner-operators unlock actionable insights from 3D scans and images.

FocisAI was founded by CEO Tyler Wooten, COO Colin Snell and CTO Kyle Snell in 2026. It is a member of Greentown Labs and launched a seed round in September, which is expected to close by the end of the year, according to the company's application. It has rolled out 10 pilot programs and is looking to move into recurring, facility-scale deployments and scale its team in Houston this year.

Machine Saver Inc.

Industrial tech startup Machine Saver Inc. builds wireless and wired vibration and proximity sensors to tell heavy industry when a machine is about to fail. The company's technology runs on an 8-plus-year battery life and helps operators reduce downtime, improve maintenance and extend equipment life.

Machine Saver was founded by CEO Colton Bach and Quentin Bach in 2013. Its customers and partners include Houston Methodist, Blue Bell, Genemco, as well as energy and heavy industry, food and beverage, and cold chain companies, according to its application. The company is raising a Series A.

Square Robot

Energytech startup Square Robot develops and operates submersible inspection robotics that inspect aboveground storage tanks while they remain in service. The robots reduce downtime and costs, improve worker safety and limit hydrocarbon emissions.

Square Robot launched its Houston office in 2019 and closed a Series B in 2025. It plans to complete its first U.S. Navy demonstrator tank in November and is also developing real-time inspection software.

Venus Aerospace

Spacetech company Venus Aerospace is developing a high-thrust rotating detonation rocket engine (RDRE) that replaces the subsonic combustion used in conventional rocket engines. The RDRE is a compact, simpler engine that can deliver up to 15 percent greater efficiency for defense and space applications. It completed its first U.S. flight test of the engine last summer.

Venus Aerospace was founded in 2020 by CEO Cassie Duggleby and CTO Andrew Duggleby. It raised a $20 million Series A in 2022 and $42 million Series A2 in 2025. It closed a $91 million Series B earlier this year and expanded its leadership team. The company is working toward longer-duration and higher-thrust testing and advancing its flight program.

Houston leads U.S. with the biggest surge in millionaire renters

Rent Report

The number of millionaire renters and homeowners in the U.S. has surged over the last five years, and Houston has soared ahead of the rest with the largest growth rate among these affluent renter households.

Houston leads the nation with the No. 1 increase in millionaire renters from 2020 to 2024, a new RentCafe study found. The number of these wealthy households increased from 18 to 232 over the last five years, representing a 1,189 percent growth rate.

"The pandemic accelerated the shift as remote work pushed the wealthy to relocate to lower-tax metros like Houston, where millionaire renters grew 13-fold, versus 3.9-fold for owners," the report said. "Granted, 232 households is still a tiny fraction of the Houston metro’s roughly 2.7 million households, but the growth rate far outpaces any other major metro."

Nationwide, the number of millionaire renter households grew 229 percent from 2020 to 2024, outpacing the 193 percent growth rate among millionaire homeowners.

Dallas was the only other Texas metro to crack the top 10. The number of millionaire renter households in North Texas has more than quintupled, from just 30 in 2020 to 165 in 2024. That represents a growth rate of 450 percent, which — surprisingly — is only the eighth highest nationwide.

But when it comes to the largest populations of millionaire renters, New York City and San Francisco still lead the way. New York claimed the No. 1 spot with nearly 7,300 millionaire renters living in the city in 2024. Houston ranked 12th on that list.

Elsewhere in Texas, Austin and Dallas ranked as the 16th and 17th, respectively, for the largest population of millionaire renters. There were 206 millionaire renters living in Austin in 2024, and 165 in Dallas.

This is who the typical millionaire renter is
The report also revealed a surprising statistic about the typical millionaire renter in the U.S. — a lot of them are millennials working in "white-collar, high-earning fields."

"Nearly half (49 percent) of millionaire renters are Millennials, and the number of affluent Millennial renter households surged 392 percent during the five-year period," the report said. "Gen X follows with 33 percent of millionaire Gen X households renting after increasing by 147 percent."

The report continued, "Although Gen Z still represents a small share of millionaire renters (just 2 percent of the total), no generation has expanded faster: Gen Z millionaire renter households leaped from fewer than a dozen to more than 400 — a tiny cohort today, but one that was virtually nonexistent five years ago."

The top three most common professions for millionaire renters are chief executives, software developers, and managers, the report additionally found. In Houston, the surge of wealthy newcomers are mostly executives, professional athletes, and entertainers.

"These roles tend to generate steady, substantial income without necessarily tying workers to one location, making renting a practical fit, rather than a financial necessity," the report said.

Hotspots for millionaire homeowners
In RentCafe's separate list comparing the top 10 most popular U.S. metros for millionaire homeowners, Houston ranked 12th nationally with 4,374 millioniare homeowners living in the metro as of 2024. These wealthy Houstonians are most likely working as chief executives, physicians, managers, and lawyers and judges.

Houston has already proven to be a hotspot for millennial homebuyers, and the latest RentCafe data says millennials make up 19 percent of all millionaire homeowners in the U.S. Gen Xers and Baby Boomers still maintain the largest shares of millionaire homeowners nationwide, at 45 and 33 percent, respectively.

Dallas (No. 10) and Austin (No. 20) also appeared among the hottest metros for millionaire homeowners.

Only one Texas city appeared among RentCafe's list of the 20 fastest-growing metros for millionaire homeowners: College Station ranked 13th nationwide with a growth rate of 1,329 percent. From 2020-2024, the number of millionaire homeowners residing in College Station grew from 14 to 200.

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This article originally appeared on CultureMap.com.

Houston ranks high on best cities for small-business expansion report

business growth

For small businesses looking to expand, Houston might be the right place.

Among 56 major U.S. metros, Houston grabbed the No. 6 spot on a new list of the metros boasting the strongest environments for small-business expansion.

A 2025 report from the state comptroller’s office showed roughly 970,000 small businesses operate in the 13-county Gulf Coast region. The region includes the majority of the Houston metro area.

“Whether it’s a family-owned shop on Main Street or a fast-growing startup, small businesses power our state’s economic engine, create opportunity, and strengthen the character of every Texas community,” Kelly Hancock, who was interim state comptroller when the report was released, said in a press release.

Business lending platform Clarify Capital analyzed five factors to develop the list: job growth, business entry and exit, net job creation, and unemployment.

Overall, the Nashville area claimed the No. 1 spot on the list. Other major Texas metros also cracked the top 10, including Austin at No. 3 and Dallas-Fort Worth at No. 7.

“The highest-ranking metros combine labor-market momentum with steady business formation and relatively favorable local employment conditions,” Clarity Capital says.

The Houston metro ranked sixth for job growth, 11th for business entry rate, 38th for business exit rate, second for net job creation rate, and 50th for unemployment rate.

“For business owners, the ranking is a starting point rather than a guarantee,” Clarify Capital says. “Local demand, competition, operating costs, and access to capital still shape whether an expansion works.”

“Building enough cash-flow room for hiring, equipment, and unexpected expenses can help small and midsize business owners take advantage of a strong market without stretching the business too thin,” the company adds.

Of course, money fuels small-business expansion in the Houston area or anywhere else.

According to an analysis of SBA loan data by feasibility consulting firm MMCG, the Houston metro area saw 1,685 approvals for 7(a) loans and 101 approvals of 504 loans in the federal government’s 2025 budget year. The approval numbers for both loan categories increased from the previous year.

Altogether, the 7(a) and 505 loans exceeded $1 billion.

The data from the U.S. Small Business Administration suggests small-business expansion may be on the rise in the Houston area.

Further potential evidence of small-business expansion in the Houston area: The region experienced a 92 percent rise in account applications from 2024 to 2025 submitted to Bluevine, a small-business banking platform. The Houston metro ranked fifth for the number of Bluevine small-business applications in 2025.

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