Houston scores respectable rank in new report of best U.S. cities for working-class families

is the living easy?

Houstonians live well. Photo via Getty Images

A new economic analysis by the Ludwig Institute for Shared Economic Prosperity (LISEP) has revealed that Houston-The-Woodlands-Sugar Land has the 30th most prosperous local economy in the nation. The analysis ranked the 50 largest Metropolitan Statistical Areas (MSAs) in the U.S. based on several localized economic factors.

According to Houston's data, the region's population has skyrocketed 18.7 percent within the last decade, now reaching over 7.34 million people. The median age of an Houston-area resident is 35.1-years-old.

The three main criteria that determined Houston's prospering rank include a "True Living Cost" metric that tracks price changes for essential household necessities; a "True Weekly Earnings" calculation that determines the median weekly earnings of all workers (including part-timers and those who are unemployed); and a "True Rate of Unemployment Out of the Population" metric that measures the percentage of people unable to find full-time employment with a living wage.

The findings show that a little more than half of all Houston-area households are earning enough income to afford their basic needs. The remaining 46.4 percent are struggling due to a high cost of living, the report said.

"The total costs of necessities for a 4-person family [in Houston-The Woodlands-Sugar Land] increased 58.2 percent since 2005 from $54,052 to $85,492," the report said.

Furthermore, Houstonians are bringing home higher weekly earnings than they were in 2020. Houston workers are earning a median $894.89 per week, or about $47,429.17 a year. The report states the average employee has gained 8.2 percent more purchasing power since 2005, and the average Houston household has 8.1 percent of their income leftover after their necessities.

Houston's "True Rate of Unemployment Out of the Population" is 63 percent, according to the analysis.

The objective behind LISEP's report is to help policymakers assess their local economies' dynamics and to assess how much low-income and working-class families are affected, according to LISEP Chairman Gene Ludwig in the release.

"Across the nation we are seeing both ends of the spectrum — communities where middle- and working-class families are faring well and others where financial survival remains a struggle," Ludwig said. "Our challenge here is in identifying what's working well and replicating it; what's not, and scrapping it. This is where real-world data can be invaluable to policymakers."

Houston-The Woodlands-Sugar Land wasn't the only Texas metro area to earn a spot in the analysis. Austin-Round Rock worked its way up into No. 2 nationally, while San Antonio-New Braunfels ranked just outside the top 10 at No. 13. Dallas-Fort Worth-Arlington ranked four spots higher than Houston at No. 26.

The top 10 highest-performing economies in the U.S. are:

  • No. 1 – San Jose-Sunnyvale, Santa Clara, California
  • No. 2 – Austin-Round Rock, Texas
  • No. 3 – San Francisco-Oakland-Hayward, California
  • No. 4 – Baltimroe-Columbia-Towson, Maryland
  • No. 5 – Washington-Arlington-Alexandria, District of Columbia-Virginia-Maryland
  • No. 6 – Minneapolis-St. Paul-Blookington, Minnesota-Wisconsin
  • No. 7 – Portland-Vancouver-Hillsboro, Oregon-Washington
  • No. 8 – Milwaukee-Waukesha-West Allis, Wisconsin
  • No. 9 – Denver-Aurora-Lakewood, Colorado
  • No. 10 – Salt Lake City, Utah
The full report and its methodology can be found on lisep.org.

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This article originally ran on CultureMap.

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Johnson Space Center and UT partner to expand research, workforce development

onward and upward

NASA’s Johnson Space Center in Houston has forged a partnership with the University of Texas System to expand collaboration on research, workforce development and education that supports space exploration and national security.

“It’s an exciting time for the UT System and NASA to come together in new ways because Texas is at the epicenter of America’s space future. It’s an area where America is dominant, and we are committed as a university system to maintaining and growing that dominance,” Dr. John Zerwas, chancellor of the UT System, said in a news release.

Vanessa Wyche, director of Johnson Space Center, added that the partnership with the UT System “will enable us to meet our nation’s exploration goals and advance the future of space exploration.”

The news release noted that UT Health Houston and the UT Medical Branch in Galveston already collaborate with NASA. The UT Medical Branch’s aerospace medicine residency program and UT Health Houston’s space medicine program train NASA astronauts.

“We’re living through a unique moment where aerospace innovation, national security, economic transformation, and scientific discovery are converging like never before in Texas," Zerwas said. “UT institutions are uniquely positioned to partner with NASA in building a stronger and safer Texas.”

Zerwas became chancellor of the UT System in 2025. He joined the system in 2019 as executive vice chancellor for health affairs. Zerwas represented northwestern Ford Bend County in the Texas House from 2007 to 2019.

In 1996, he co-founded a Houston-area medical practice that became part of US Anesthesia Partners in 2012. He remained active in the practice until joining the UT System. Zerwas was chief medical officer of the Memorial Hermann Hospital System from 2003 to 2008 and was its chief physician integration officer until 2009.

Zerwas, a 1973 graduate of the Houston area’s Bellaire High School, is an alumnus of the University of Houston and Baylor College of Medicine.

3 Houston innovators who are making headlines right now

Featured Innovators

Editor's note: Houston innovators have kicked off the new year with big developments, from an immune-boosting nanodrug to NSF research funding and more. Below, meet three local innovators who have recently been in the headlines.

Kirsten Adam, Rice University

Kirsten Adam. Courtesy photo.

Rice University psychologist Kirsten Adam has received a $600,000 National Science Foundation CAREER Award to research how visual distractions like phone notifications, flashing alerts, crowded screens and busy workspaces can negatively impact focus—and how the brain works to try to regain it. Adam’s work will aim to clarify how the brain refocuses in the age of screens, instant gratification and other lingering distractions. The funding will also be used to train graduate students in advanced cognitive neuroscience methods, expand access to electroencephalography (EEG) and for public data sharing. Read more.

Houston lab-test startup seeks $1M for nationwide expansion

Jim Gebhart, founder and CEO of TheLabCafe.com. Courtesy photo.

Driven by the desire to knock down lab-test barriers, health care industry veteran Jim Gebhart founded Houston-based TheLabCafe.com in 2024. The platform provides access to low-cost medical tests without requiring patients to carry health insurance. It currently serves patients in six states and is poised for major U.S. expansion early this year. Read more.

Wei Gao, University of Houston College of Pharmacy

Wei Gao (center). Photo courtesy UH.

Wei Gao, assistant professor of pharmacology at the University of Houston College of Pharmacy, may have a solution to regulatory B cells (Bregs) which block the body's natural immunity and are found in pancreatic and lung cancers. Gao and her team have developed Nano-273, a dual-function drug, packaged in an albumin-based particle, that boosts the immune system to help it better fight these cancers. Read more.

Texas booms as No. 3 best state to start a business right now

Innovation Starts Here

High employment growth and advantageous entrepreneurship rates have led Texas into a triumphant No. 3 spot in WalletHub's ranking of "Best and Worst States to Start a Business" for 2026.

Texas bounced back into the No. 3 spot nationally for the first time since 2023. After dropping into 8th place in 2024, the state hustled into No. 4 last year.

Ever year, WalletHub compares all 50 states based on their business environment, costs, and access to financial resources to determine the best places for starting a business. The study analyzes 25 relevant metrics to determine the rankings, such as labor costs, office space affordability, financial accessibility, the number of startups per capita, and more.

When about half of all new businesses don't last more than five years, finding the right environment for a startup is vital for long-term success, the report says.

Here's how Texas ranked across the three main categories in the study:

  • No. 1 – Business environment
  • No. 11 – Access to resources
  • No. 34 – Business costs

The state boasts the 10th highest entrepreneurship rates nationwide, and it has the 11th-highest share of fast-growing firms. WalletHub also noted that more than half (53 percent) of all Texas businesses are located in "strong clusters," which suggests they are more likely to be successful long-term.

"Clusters are interconnected businesses that specialize in the same field, and 'strong clusters' are ones that are in the top 25 percent of all regions for their particular specialization," the report said. "If businesses fit into one of these clusters, they will have an easier time getting the materials they need, and can tap into an existing customer base. To some degree, it might mean more competition, though."

Texas business owners should also keep their eye on Houston, which was recently ranked the 7th best U.S. city for starting a new business, and it was dubbed one of the top-10 tech hubs in North America. Workers in Texas are the "third-most engaged" in the country, the study added, a promising attribute for employers searching for the right place to begin their next business venture.

"Business owners in Texas benefit from favorable conditions, as the state has the third-highest growth in working-age population and the third-highest employment growth in the country, too," the report said.

The top 10 best states for starting a business in 2026 are:

  • No. 1 – Florida
  • No. 2 – Utah
  • No. 3 – Texas
  • No. 4 – Oklahoma
  • No. 5 – Idaho
  • No. 6 – Mississippi
  • No. 7 – Georgia
  • No. 8 – Indiana
  • No. 9 – Nevada
  • No. 10 – California
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This article originally appeared on CultureMap.com.

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