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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UTHealth Houston officially opens new tower in TMC's Helix Park

open for innovation

UTHealth Houston School of Public Health recently opened its new state-of-the-art tower in the Texas Medical Center’s Helix Park.

The 350,000-square-foot, 10-story campus at 1930 Old Spanish Trail was celebrated with an official ribbon-cutting ceremony on Oct. 28. The $229 million project will consolidate all UTHealth Houston School of Public Health operations into one facility. It will also connect students who are at the Austin, Brownsville, Dallas, El Paso and San Antonio campuses with peers and faculty through digital and distance learning.

Disciplines taught in the new tower will include epidemiology, genetics, nutrition, health policy, data science and health promotion, UTHealth shared when the building first broke ground in 2023.

Architects Kirksey Architecture and Smith Group designed the building, and Vaughn Construction served as general contractor. The facility features labs for studying human disease, classrooms and spaces to support interdisciplinary and community-based research, a broadcast studio and a teaching kitchen. A skybridge over Old Spanish Trail connects the new tower with a plaza that's shared with MD Anderson.

“This new facility reflects the kind of forward-looking investment that will serve Texans for generations,” Janiece Longoria, vice chairman of the UT System Board of Regents, said in a news release. “By creating an environment where talented people can learn, collaborate, and pursue new ideas, UTHealth Houston is building capacity to meet the challenges of tomorrow while strengthening its impact across our state.”

UTHealth says the system aims for the new campus to expand on collaborative research efforts and continue graduate education, as enrollment at the School of Public Health has increased by 27 percent over the last five years.

“This new building, with its state-of-the-art education technology and learning environment, will strengthen and advance the school’s mission to educate and train the next generation of experts who will advance scientific discovery, shape evidence-based health policy, and lead innovative solutions to the complex health challenges in communities throughout Texas and across the nation,” Kevin Morano, senior vice president, provost and chief academic officer of UTHealth Houston, added in a news release.

Attending the ceremony were Dr. Melina R. Kibbe, UTHealth Houston president and Alkek Williams Distinguished Chair; Eric Boerwinkle, dean, M. David Low Chair in Public Health and Kozmetsky Family Chair in Human Genetics at the School of Public Health; Texas State Representative Lauren Ashley Simmons, Texas House District 146; representatives of the offices of Senator John Cornyn and Harris County Commissioner Rodney Ellis; and Dr. Theresa Tran, director of the Houston Health Department.

"This building represents far more than a home for our school,” Boerwinkle added in the release. “It represents the people who make our mission possible: the faculty, staff, and students who fill each laboratory and classroom with curiosity, discovery, and purpose to improve the population’s quality of life.”

Rice University breaks ground on new innovation hub, The Arc

breaking ground

Construction is officially underway on Rice University's The Arc in Houston’s Ion District.

The university broke ground on the 200,000-square-foot research, corporate innovation and office building on Nov. 4. The facility will share a plaza with the existing Ion building, fostering collaboration within the innovation space, according to Rice.

“The Arc will bring Rice’s extraordinary research and talent and Houston’s impactful innovation ecosystem into even closer connection with the industries and innovators working to solve some of the world’s most consequential challenges,” Rice President Reginald DesRoches said in an announcement. “That constant exchange of ideas and expertise will help move discoveries more rapidly from the laboratory to real-world impact.”

Construction is scheduled to be completed by Q2 2028. Rice Real Estate Co. is developing the project, and Rice University will occupy about 80,000 square feet in the building (about 40 percent). Preleasing has begun, with floor plans ranging from 28,000 to 31,000 square feet.

The Arc will feature conference and meeting spaces, an amenity lounge, fitness center, outdoor plazas, underground parking, and on-site retail and dining, according to the release.

It aims to host tenants focused on artificial intelligence and machine learning, data science, robotics, quantum science and engineering and energy, including Rice's new AI Foundry.

Rice says the AI Foundry will be a space where university experts and partners can support organizations with AI challenges. Rice recently committed to hiring 75 new AI-focused faculty and announced plans to launch a new Master of Artificial Intelligence (MAI) next fall.

“The AI Foundry is exactly the kind of collaboration the Arc is designed to enable,” Amy Dittmar, the Howard R. Hughes Provost and executive vice president for academic affairs at Rice, added in the release. “By bringing Rice researchers together with industry partners in a shared environment, we can accelerate the movement of ideas from research into practical applications while helping organizations build the capabilities they need to succeed as AI continues to evolve.

Developers of The Arc are targeting LEED Gold certification by incorporating smart building automation and energy-saving features into the project's design. Rice first announced the project in September 2025.

Rendering courtesy Bogza

Houston battery tech startup FlowCellutions acquired by Katy energy co.

M&A

Katy-based TerraFlow Energy, an energy storage and infrastructure company, has acquired Houston-based battery technology startup FlowCellutions. Financial terms weren’t disclosed.

FlowCellutions still operates under its established name, but with the tagline “A TerraFlow Energy Company.” Becca Segel, founder and CEO of FlowCellutions, now runs the business as its president.

FlowCellutions specializes in electrochemical sensing, diagnostics, analytics, and testing that offer insights into battery chemistry, charging capabilities, and system performance.

“FlowCellutions has always been focused on developing better ways to understand what is happening inside a flow battery and using that information to improve how these systems perform,” Segal said in a press release. “Joining TerraFlow gives us the opportunity to apply that work at a much larger scale while continuing to build the capabilities and expertise that make FlowCellutions unique.”

The FlowCellutions platform supports data centers and other heavy users of power. It’s designed to help reduce operating costs, prevent failures and costly downtime, and extend battery lifetime from about seven years to more than 30 years.

Segel founded the company in 2022. A member of Greentown Labs, the company raised more than $2 million in non-dilutive funding and received $1.5 million in National Science Foundation funding earlier this year.

FlowCellutions is one of five finalists in the Energy Transition Business category of InnovationMap’s 2026 Houston Innovation Awards.

“FlowCellutions brings a depth of scientific and technical expertise that fits naturally with where TerraFlow is going,” Jon Parrella, CEO of TerraFlow, said in the release.

“As we move from developing these systems to deploying them at commercial scale, understanding performance at a deeper level matters,” he said. “Bringing FlowCellutions into TerraFlow strengthens that capability and gives both teams more opportunity to advance the technology.”TerraFlow, founded in 2024, develops long-duration energy storage and power infrastructure for data centers, industrial facilities, utilities and other large power consumers.

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This article originally appeared on EnergyCapitalHTX.com.

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