Texas ranks as No. 1 most financially distressed state, says new report

Money Woes

Texas is the state with the most residents in financial distress. Photo via Getty Images

Experiencing financial strife is a nightmare of many Americans, but it appears to be a looming reality for Texans, according to a just-released WalletHub study. It names Texas the No. 1 most "financially distressed" state in America.

To determine the states with the most financially distressed residents, WalletHub compared all 50 states across nine metrics in six major categories, such as average credit scores, the share of people with "accounts in distress" (meaning an account that's in forbearance or has deferred payments), the one-year change in bankruptcy filings from March 2024, and search interest indexes for "debt" and "loans."

Joining Texas among the top five most distressed states are Florida (No. 2), Louisiana (No. 3), Nevada (No. 4), and South Carolina (No. 5).

Texas' new ranking as the most financially distressed state in 2025 may be unexpected, WalletHub says, considering the state has a "bigger GDP than most countries" and still has one of the top 10 best economies in the nation (even though that ranking is also lower than it was in previous years).

Even so, Texas residents are stretching themselves very thin financially this year. Texans had the ninth lowest average credit scores nationwide during the first quarter of 2025, the study found, and Texans had the sixth-highest increase in non-business-related bankruptcy filings over the last year, toppling 22 percent.

"Texas also had the third-highest number of accounts in forbearance or with deferred payments per person, and the seventh-highest share of people with these distressed accounts, at 7.1 percent," the report said.

This is where Texas ranked across the study's six key dimensions, where No. 1 means "most distressed:"

  • No. 5 – "Loans" search interest index rank
  • No. 6 – Change in bankruptcy filings from March 2024 to March 2025 rank
  • No. 7 – Average number of accounts in distress rank
  • No. 8 – People with accounts in distress rank
  • No. 13 – Credit score rank and “debt” search interest index rank
Examining these financial factors on the state level is important for understanding how Americans are faring with economic issues like inflation, unemployment rates, or natural disasters, according to WalletHub analyst Chip Lupo.


"When you combine data about people delaying payments with other metrics like bankruptcy filings and credit score changes, it paints a good picture of the overall economic trends of a state," Lupo said.

On the other side of the spectrum, states like Hawaii (No. 50), Vermont (No. 49), and Alaska (No. 48) are the least financially distressed states in America.

The top 10 states with the most people in financial distress in 2025 are:

  • No. 1 – Texas
  • No. 2 – Florida
  • No. 3 – Louisiana
  • No. 4 – Nevada
  • No. 5 – South Carolina
  • No. 6 – Oklahoma
  • No. 7 – North Carolina
  • No. 8 – Mississippi
  • No. 9 – Kentucky
  • No. 10 – Alabama
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A version of this article originally appeared on CultureMap.com.

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Everything's bigger here in Texas — including the spending. Photo via Getty Images

Texas charges up top-10 rank in states dealing with the most debt, per report

loan star state

It's not too late to rein in that holiday spending, Texas. A new financial report has revealed Texas is the No. 9 state with the highest debt levels in the country.

The report by personal finance website CreditDonkey examined each state's average mortgage debt, student debt, automobile debt, and credit card debt. Rankings were determined based on which state had the highest amount of debt.

Texas was ranked so highly due to its rampant amount of auto loan debt, the most out of all 50 states. Over 100 million Texans have loans on their cars, which has racked up more than $1.5 trillion in auto loan debt. The average Texan's auto loan debt stands at $27,739.

Texans' higher-than-average credit card debt was also a major factor, according to the report. The average credit card debt amount adds up to $6,542.

Speaking of debt, it's worth noting that this report comes after a recent survey that found The Woodlands ranks No. 10 in the U.S. for holiday spending budgets. (No word as to how much of that holiday spending ends up as revolving credit balances.)

The average mortgage debt in the Lone Star State is $217,461, while the average student debt amounts to $33,354. In Houston, first time buyers need to earn 13.9 percent more than 2022 to afford that first home, per a recent report.

While Texas' level of debt is no laughing matter, residents can find some relief they're not living in California. Californians have the most debt in America, with the average mortgage debt at nearly $423,000 per household, and an average student loan debt of $37,384.

CreditDonkey Director of Research Anna Ge explained the "multifaceted story" of why debt in Texas (and overall in the United States) has skyrocketed over the years.

"The causes for the surge in debt are rooted in a confluence of factors – from the pursuit of higher education to home-ownership aspirations and the challenges of rising costs across the board," she said. "The ease of access to credit, while providing immediate relief, has contributed to a culture where spending can outpace income."

Population growth and consumerism are two other driving factors, according to Ge.

"There are also more deep-rooted issues that are causing such drastic increases in debt, from rising costs of essentials such as gas and groceries, to healthcare and living expenses (rent and bills), as costs continue to rise many Americans are being pushed to the edge and require relief that inevitably results in the building up of debt," Ge continued.

The top 10 states struggling with the most debt are:

  • No. 1 – California
  • No. 2 – Hawaii
  • No. 3 – Maryland
  • No. 4 – Alaska
  • No. 5 – Colorado
  • No. 6 – Washington
  • No. 7 – Virginia
  • No. 8 – Georgia
  • No. 9 – Texas
  • No. 10 – Nevada
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This article originally ran on CultureMap. Steven Devadanam contributed to this article.

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UH expands Medical Center footprint with $77M research facility

breaking ground

The University of Houston broke ground on a brand new $77.5 million Medical Research Building last week that will host clinical trials and a virtual reality behavioral health suite, among other laboratories. Designed by SmithGroup, it will be the second building on the UH Medical Center campus after the Fertitta College of Medicine opened in 2022.

“The Medical Research Building was designed to foster collaboration and discovery while creating a welcoming environment for students, researchers and the community,” Kalman Nagy, higher education studio design leader for SmithGroup, said in a news release. “As the second building on the University of Houston’s medical campus, we wanted to create a strong connection to the College of Medicine and the surrounding woodlands, with outdoor terraces, shared learning spaces and natural views that inspire interaction and innovation.”

Located just behind the Fertitta building at 5150 Medical Service Drive, the 57,000-square-foot building will house wet laboratories, computational research spaces and specialized facilities for clinical research. The virtual reality behavioral health suite will use immersive technology to deliver care through manufactured audio and visual environments. It’s part of the college’s vision for developing new medical advancements in the heart of Houston’s medical community. The groundbreaking comes on the heels of the launch of the university's cross-disciplinary academic venture, UH Health, this summer.

“This groundbreaking marks an important next step in the growth of the Fertitta College of Medicine and UH Health,” Dr. Jonathan McCullers, vice president for health affairs at UH, added in the release. “We are building the research capacity to match our ambitions—bringing together scientists, physicians and experts from across the University to accelerate discovery and turn promising ideas into solutions that improve people’s lives.”

UH’s journey to establish a significant presence alongside the University of Texas and Baylor in the Medical Center started in 2009 when it became an official full institutional member. The university launched its plans for the Fertitta building in 2013, and is pursuing Health Science Center designation from the Texas Legislature in the next year’s session.

“The research that will take place here will directly benefit our community,” UH President Renu Khator added. “Diseases do not recognize disciplinary silos, and neither should our research. This building will bring together experts from across UH to break down those barriers, work across disciplines and tackle some of our most complex health challenges.”

The building is slated to open in 2028.

Houston ranks among 15 U.S. hot spots for women in tech

Ranking It

Houston is soaring among the best places in the U.S. for women in tech, a new report says. Houston ranked No. 15 nationwide in SmartAsset's new report, "Best and Worst Cities for Women in Tech — 2026 Study," which compared the 50 biggest U.S. cities across four metrics:

  • Gender pay gap — women's median earnings as a percentage of men’s median earnings in tech
  • The share of all tech workers that are women
  • The overall concentration of employment for tech workers, defined as "tech workers as a share of the local workforce"
  • Women tech workers’ median earnings, adjusted for regional price parity
For the purpose of the study, tech workers are defined as "city residents employed in computer and mathematical occupations." The study's findings show that fewer than 9,500 tech workers in Houston are women, or 25.6 percent of the total tech workforce in the city. In total, tech workers in general make up less than 3 percent of the Houston workforce.Despite the high ranking, women tech workers in Houston have a sizeable gap to cross to receive equal pay compared to their male counterparts in the same industry. Women tech workers make just over $97,000 in median earnings after adjusting for regional price parity, which is only 93 percent of what male tech workers make, SmartAsset found.

There are only two U.S. cities where women in tech earn more than what their male counterparts: Miami and Memphis, Tennessee. Women tech workers in Miami make an adjusted $88,650 in median earnings, or 101.7 percent of what men in tech make. In Memphis, women make $84,718 in adjusted earnings, or 101.5 percent of what men in tech earn.

The findings also assert that women remain underrepresented in the nation's overall tech sector, despite making up nearly half of the total workforce. Only 22.6 percent of the country's tech labor force is made up of women, according to the Equal Employment Opportunity Commission."Opportunities for women in tech can vary considerably by location, and these differences shape access to jobs, career advancement and earning potential," the report's author wrote. "In some places, women account for a larger share of tech workers, face narrower pay gaps and enjoy a stronger local labor market. In others, they may encounter a more challenging career environmentThe six other Texas cities that earned spots in the report are Austin (No. 6), Fort Worth (No. 26), Dallas (No. 32), Arlington (No. 38), San Antonio (No. 42), and El Paso (No. 49).

The top 10 best U.S. cities for women in tech are:

  • No. 1 – San Jose, California
  • No. 2 – Seattle, Washington
  • No. 3 – San Francisco, California
  • No. 4 – Atlanta, Georgia
  • No. 5 – Baltimore, Maryland
  • No. 6 – Austin, Texas
  • No. 7 – Oakland, California
  • No. 8 – Portland, Oregon
  • No. 9 – Boston, Massachusetts
  • No. 10 – Minneapolis, Minnesota
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This article first appeared on CultureMap.com.

2026 Houston Innovation Awards finalists revealed and more top stories

Trending News

Editor's note: The top Houston innovation news for the first half of October celebrates the finalists for our sixth annual awards program. Plus, Rice launches a new venture fund and an energy AI company picks Houston for its first U.S. office. Here are the five most-read stories published October 1-15, 2026:

Announcing the 2026 Houston Innovation Awards finalists

InnovationMap is proud to reveal the finalists for the 2026 Houston Innovation Awards. The sixth annual Houston Innovation Awards program returns in an all-digital format this fall to honor the best of Houston's innovation ecosystem, including startups, entrepreneurs, mentors, and more. Get to know our finalists in more detail through editorial spotlights on InnovationMap.com leading up to the winner announcement in mid-November. Continue reading.

Meet the esteemed judges for the 2026 Houston Innovation Awards

Our 2026 Houston Innovation Awards judging panel comprises past award winners who represent a variety of industries and areas of expertise. They are joined by InnovationMap's interim editor. All are deeply engaged in the Houston innovation ecosystem. Continue reading.

Energy AI company opens first U.S. office at Houston's the Ion

Building on its partnership with Houston-based oilfield services provider Halliburton, energy-sector AI company Shape Digital recently opened an office at The Ion. It’s the company’s first U.S. location. Shape Digital’s workforce in Houston includes employees specializing in tech support, business development and client services. The company’s local hiring projections and headcount weren’t available. The new office will be located within Industrious at the Ion, according to Rice Alliance. Continue reading.

Rice University launches new venture fund for university-affiliated startups

Rice University has launched its new One Giant Leap Ventures Fund I, which will invest in the university’s spinouts and alumni-founded startups. The early-stage institutional venture fund will function with a hybrid structure that allows for participation from traditional equity investors and philanthropic investors. According to the university, the fund will invest up to $500,000 per Rice-affiliated company. To be considered eligible for funds, companies must use intellectual property licensed by the university or be led or founded by alumni. Continue reading.

Here’s where wages grew the most in Houston since 2021, according to new report

Bolstered by a thriving manufacturing sector, Waller County—the country’s second-fastest-growing county—leads all Houston-area counties for the growth of pay from 2021 to 2026, according to a new study. The study, conducted by personal finance website SmartAsset, found average pay in Waller County rose 48 percent from 2021 to 2026. The county’s average weekly pay climbed from $891 to $1,323 during that period. Continue reading.

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