Houston leads U.S. in population growth for 2025, Census says

Boomtown

The 10-county Houston metro added 126,720 residents from July 1, 2024, to July 1, 2025. Photo via Getty Images

Imagine that the Houston metro area swallowed a city the size of Pearland in just one year. That’s essentially what happened from 2024 to 2025, with the Houston metro ranking first in the U.S. for population growth based on the number of people.

New estimates from the U.S. Census Bureau show the 10-county Houston metro added 126,720 residents from July 1, 2024, to July 1, 2025. That’s just shy of Pearland’s roughly 133,000-resident tally.

To calculate population, the Census Bureau counts births, deaths, new residents, and moved-away residents.

Region’s population approaches 8 million

On July 1, 2025, the Houston metro’s population hovered slightly above 7.9 million, up 1.6 percent from the same time in 2024. In the very near future, the region’s population should break the eight million mark.

This follows massive growth in the past 20 years. From 2005 to 2025, the region’s population soared by 39 percent. By comparison, the growth rate from 2021 to 2025 sat at nine percent.

A forecast from the Texas Demographics Center indicates that under a middle-of-the-road scenario, the Houston metro’s population will reach nearly 8.5 million in mid-2030 and more than 9.5 million in mid-2040.

Dan Potter, director of Rice University’s Houston Population Research Center, attributes much of the region’s population surge to people moving to the area from outside the U.S. In Harris County, this means a combination of military personnel returning home, people living or working overseas coming back to the U.S., and immigrants relocating to the U.S., he tells CultureMap.

But Harris County fell short from 2024 to 2025 when it comes to people moving here from elsewhere in the U.S., according to Potter. Counties surrounding Harris County benefited from that trend, drawing new residents who preferred to settle in the suburbs.

“The incredible pull and attraction of the Houston area is its economy, its people, and its affordability, and the significant growth that was observed in 2024 and again in 2025 speaks to the magnetism of the region,” Potter says. “That pull to Houston is too strong to be turned off overnight.”

Cooling economy and immigration shifts slow down growth

Whether looking at urban or suburban places, population growth in the Houston area slowed in 2025 and appears to be slowing even more this year, Potter says.

“A cooling economy and changes to immigration policy are a one-two combination that could knock out the region’s population growth,” says Potter, citing the region’s addition of a less-than-expected 14,800 jobs in 2025 as an example.

Weaker population growth may not be felt evenly across the metro area, according to Potter.

A continuing influx of people from Houston to outlying counties such as Brazoria, Fort Bend, Liberty, Montgomery, and Waller could curb growth in Harris County, Potter said. Why? If the number of people arriving from other other countries flattens or even drops, then there could be “doughnut-style population growth for the next few years, where Harris County and Houston see declines while the suburban counties see an increase.”

Harris County represents 40 percent of region’s population lift

Houston-anchored Harris County accounted for almost 40 percent of the region’s population spike from 2024 to 2025. In one year, Harris County grew by 48,695 residents, or 1 percent, pushing its population past five million. That increase put Harris County in first place for numeric growth (rather than percentage growth) among all U.S. counties.

From 2020 to 2025, Harris County’s growth rate was 6.6 percent. It remains the country’s third largest county based on population, behind Southern California’s Los Angeles County and Illinois’ Chicago-anchored Cook County.

Harris County is on track to surpass Cook County in size in the near future. As of July 1, 2025, a nearly 150,000-resident gap separated population-losing Cook County and fast-growing Harris County.

The Texas Demographics Center predicts Harris County’s population will be 5.37 million in mid-2030 and just short of six million in mid-2040.

Suburban counties see significant population gains

Harris County isn’t the only county in the area that experienced a growth spurt from 2024 to 2025:

  • Waller County’s population climbed 5.69 percent, winding up at 69,858. Its growth rate ranked second among U.S. counties.
  • Liberty County’s population rose 4.4 percent to 121,364, putting its growth rate in eighth place among U.S. counties.
  • Montgomery County gained 30,011 residents, with its population landing at 781,194. That placed it at No. 4 among U.S. counties for numeric growth.
  • Fort Bend County picked up 24,163 residents, arriving at a total of 975,191 and positioning it at No. 8 among U.S. counties for numeric growth. Fort Bend County, the region’s second largest county based on population, is projected to break the one million-resident mark by July 2030, according to the Texas Demographics Center.

“Lower mortgage rates from 2009 to 2022 and the rise of remote work have made suburban housing more attractive, especially for families seeking affordability,” Pramod Sambidi, the Houston-Galveston Area Council’s assistant director of data analytics and research, said last year. “Additionally, suburban areas are seeing more multifamily developments than before the pandemic.”

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This article originally appeared on CultureMap.com.

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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.

Houston gained 43,217 residents from July 2023 to July 2024. Photo via Getty Images

Houston boasts No. 2 biggest population gain in U.S., Census data shows

Boomtown

Houston saw the second-highest population increase in the United States in 2024, according to the U.S. Census Bureau.

The new population report revealed Houston gained 43,217 residents from July 2023 to July 2024, bringing the city's population to 2,390,125.

Houston hung on to its ranking as the fourth largest city in the country and joined 11 other Southern cities that saw the largest numeric population gains in 2024, the report added.

Elsewhere in Texas, Fort Worth is now home to more than 1 million residents, surpassing Austin as the 11th largest city in the U.S. Fort Worth had the fifth-highest numeric increase in population, adding 23,442 residents during that same time frame to bring the city's total population to 1,008,106 residents.

Dallas retained its No. 9 spot on the list of the 15 most populous cities in the U.S. The city gained more than 23,000 residents during the one-year period, bringing its population to 1,326,087 people in 2024.


Austin slipped two spots and now ranks as the 13th largest city after adding more than 13,000 residents to bring the Texas Capital's population to 993,588.

San Antonio gained 23,945 residents — the fourth-highest increase nationwide — and was the only other city besides Houston to have a higher numerical growth rate than Fort Worth during the one-year period.

Fastest-growing U.S. cities
Princeton, a North Texas suburb of Dallas, topped the charts as the No. 1 fastest-growing U.S. city in 2024. The Census Bureau says the city's population has more than doubled in the last five years to more than 37,000 residents.

Fulshear, 34 miles from downtown Houston, has continued its rapid expansion as the second-fastest growing city. The suburb grew nearly 27 percent since the previous year, and its population rose to 54,629 residents as of July 2024.

Five additional Texas cities made the list of fastest-growing U.S. cities:

  • Celina, near Dallas (No. 4) with 18.2 percent growth (51,661 total population)
  • Anna, near Dallas (No. 5) with 14.6 percent growth (31,986 total population)
  • Fate, near Dallas (No. 8) with 11.4 percent growth (27,467 total population)
  • Melissa, near Dallas (No. 11) with 10 percent growth (26,194 total population)
  • Hutto, near Austin (No. 13) with 9.4 percent growth (42,661 total population)

The Austin suburb of Georgetown's growth has continued to slow down since 2023, and it no longer appears in the list of fastest-growing cities. However, it did surpass 100,000 residents in 2024. San Angelo, a small city in West Texas, also surpassed the 100,000-population threshold.

Most populous U.S. cities in 2024
New York City maintained its stronghold as the biggest in America in 2024, boasting a population of nearly 8.5 million residents. Los Angeles and Chicago also retained second and third place, with respective populations of nearly 3.88 million and more than 2.7 million residents.

"Cities in the Northeast that had experienced population declines in 2023 are now experiencing significant population growth, on average," said Crystal Delbé, a statistician in the Census Bureau’s Population Division. "In fact, cities of all sizes, in all regions, showed faster growth and larger gains than in 2023, except for small cities in the South, whose average population growth rate remained the same."

The 15 populous U.S. cities as of July 1, 2024 were:

  • No. 1 – New York, New York (8.48 million)
  • No. 2 – Los Angeles, California (3.88 million)
  • No. 3 – Chicago, Illinois (2.72 million)
  • No. 4 – Houston, Texas (2.39 million)
  • No. 5 – Phoenix, Arizona (1.67 million)
  • No. 6 – Philadelphia, Pennsylvania (1.57 million)
  • No. 7 – San Antonio, Texas (1.53 million)
  • No. 8 – San Diego, California (1.4 million)
  • No. 9 – Dallas, Texas (1.33 million)
  • No. 10 – Jacksonville, Florida (1 million)
  • No. 11 – Fort Worth, Texas (1 million)
  • No. 12 – San Jose, California (997,368)
  • No. 13 – Austin, Texas (993,588)
  • No. 14 – Charlotte, North Carolina (943,476)
  • No. 15 – Columbus, Ohio (933,263)
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A version of this article originally appeared on CultureMap.com.

Fulshear is growing faster than any other wealthy suburb. Photo courtesy of City of Fulshear/Facebook

This Houston neighbor was the fastest growing U.S. city in last decade

Booming Burb

It's no secret that Houston's population is growing faster than most other metros in the U.S., but now a surprising Houston-area neighbor has been named the No. 1 fastest-growing suburb nationwide over the last decade: the booming city of Fulshear.

Fulshear led the nation with an astonishing 1,082 percent increase in population from 2014 to 2023, according to a recent growth study by marketplace platform StorageCafe.

Overall, Texas cities dominated StorageCafe's list of the top 10 fastest-growing U.S. cities from 2014 to 2023.

The report said the city had nearly 27,000 residents in 2023, but now the U.S. Census Bureau estimates Fulshear's population has now grown to more than 42,600 people.

"With its blend of a relaxed lifestyle, urban conveniences, top-rated schools and strong job opportunities, Fulshear consistently ranks among the best places to live in Texas," the report's author wrote.

This isn't the first time Fulshear has entered the spotlight for its exploding population: it was the No. 2 fastest-growing U.S. city in 2023, and recently came out on top of GoBankingRates' new study ranking of the fastest-growing affluent suburbs in America for 2025.

Several other Houston-area suburbs also saw major growth over the last decade, including Manvel (No. 24), Katy (No. 82), and Conroe (No. 83).

"Manvel doubled its population between 2014 and 2023, while Katy and Conroe each recorded increases of over 50 percent," the report said. "By contrast, Houston itself grew by just 6 percent, aligning with the average growth rate for large U.S. cities."

The report added that the Houston area's population surge has also led to a high demand for housing, where home values have risen 60 percent over the last 10 years. Home prices in Fulshear stood at more than $521,000 in November 2024, whereas Manvel's home prices were over $431,000 during that same period.

For comparison, the national average price of a home is $354,000.

Katy and Conroe had the most affordable home prices out of the four Houston suburbs in the report, at $347,740 and $318,952, respectively, for November.

StorageCafe says the reasons for population shifts vary greatly, with many people seeking out cities with a more affordable cost of living, or those moving for socioeconomic factors like better employment opportunities.

"Population growth is far from even across the U.S. Some cities are experiencing significant increases, directly driven by steady in-migration, rising immigration and birth rates outpacing death rates," the report said. "But what’s fueling these trends runs deeper — economic and social forces like shifting job markets, the rise of remote and hybrid work and soaring living costs are all reshaping where people choose to live."

Other fast-growing Texas cities
Texas had the greatest number of cities to earn spots in the report's ranking of the 100 fastest-growing U.S. cities over the last decade, with 25 total cities making the cut with the highest growth rates nationwide.

Dallas-Fort Worth had the highest number of fastest-growing Texas suburbs on the list, comprising 11 cities: Celina (No. 2), Melissa (No. 3), Princeton (No. 7), Prosper (No. 8), Fate (No. 9), Anna (No. 14), Midlothian (No. 33), Royse City (No. 43), Forney (No. 45), Little Elm (No. 58), and Frisco (No. 72).

Meanwhile, Austin had five suburbs land on the list: Manor (No. 6), Leander (No. 16), Kyle (No. 53), Hutto (No. 54), and Buda (No. 68).

San Antonio also had five suburbs make the top 100, including Boerne (No. 63), Selma (No. 74), Fair Oaks Ranch (No. 70), New Braunfels (No. 77), and Canyon Lake (No. 99).

The top 10 fastest-growing cities over the last decade are:

  • No. 1 – Fulshear, Texas
  • No. 2 – Woodbridge, Virginia
  • No. 3 – Celina, Texas
  • No. 4 – Davenport, Florida
  • No. 5 – Melissa, Texas
  • No. 6 – Manor, Texas
  • No. 7 – Princeton, Texas
  • No. 8 – Prosper, Texas
  • No. 9 – Fate, Texas
  • No. 10 – Nolensville, Tennessee
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This article originally appeared on our sister site, CultureMap.com.

Five Houstonians are on Inc.'s Female Founders 500 list for 2025. Courtesy photos

Trailblazing Houston leaders and more innovation news to know right now

Trending News

Editor's note: It's time to look back at the top Houston innovation and business news for the second half of March 2025. InnovationMap's top stories include female founders in the Inc. spotlight, an inaugural list of top local business and civic leaders, Harris County's population boom, and more. Read more below.

1. Texas robotics co. begins new search for missing Malaysia Airlines flight 370

Ocean Infinity will begin a new search for MH370. Ocean Infinity/Facebook

Malaysia’s government has given final approval for a Texas-based marine robotics company to renew the search for Malaysia Airlines Flight 370, which is believed to have crashed in the southern Indian Ocean more than a decade ago.

Cabinet ministers agreed to terms and conditions for a “no-find, no-fee” contract with Texas-based Ocean Infinity to resume the seabed search operation at a new 5,800-square-mile site in the ocean, Transport Minister Anthony Loke said in a statement. Ocean Infinity will be paid $70 million only if wreckage is discovered. Continue reading.

2. 5 Houston female founders land on coveted Inc. 500 list

Sassie Duggleby, Margo Jordan, Stephanie Murphy, Emily Cisek and Nina Magon were named to Inc.'s Female Founders 500 list for 2025. Photos courtesy the company's websites and social media pages.

Five Houston female founders have been recognized by Inc. Magazine for their innovations and for leading their industries forward.

The women were named to Inc.'s Female Founders 500 list, which features female entrepreneurs based in the U.S. The group attracted approximately $9 billion in 2024 revenue and $10.6 billion in funding, according to Inc.

“Female founders know what struggle is, but they’re also experts of improvisation, adaptability, and creativity. The women featured on this year’s list exemplify these qualities," Diana Ransom, Inc. executive editor said in a release. "Through times of uncertainty, their unwavering dedication and steadfast leadership are not only inspiring but vital to driving progress.” Continue reading.

3. Harris County booms with 3rd biggest population in U.S.

Harris County booms with 3rd biggest population in U.S.

Harris County now boasts a population of more than 5 million. Photo via Getty Images

Newly released U.S. Census Bureau data has revealed Harris County became the third most populous county nationwide in 2024, and it had the highest year-over-year growth rate from 2023.

The new population report, published this month, estimated year-over-year population data from 2023 to 2024 across all 3,144 U.S. counties, and 387 metro areas. Harris County's numeric growth rate outpaced all other U.S. counties from July 1, 2023 to July 1, 2024, the report found. The Census Bureau estimated Harris County's population grew by 105,852 people year-over-year, bringing the total population to 5,009,302 residents. That's around a 2.16 percent growth rate. Continue reading.

4. Houston lab develops AI tool to improve neurodevelopmental diagnoses

A new AI tool from a Baylor College of Medicine Lab could help better diagnose specific types of autism spectrum disorder, epilepsy and developmental delay disorders. Photo via Getty Images.

One of the hardest parts of any medical condition is waiting for answers. Speeding up an accurate diagnosis can be a doctor’s greatest mercy to a family. A team at Baylor College of Medicine has created technology that may do exactly that.

Led by Dr. Ryan S. Dhindsa, assistant professor of pathology and immunology at Baylor and principal investigator at the Jan and Dan Duncan Neurological Research Institute at Texas Children’s Hospital, the scientists have developed an artificial intelligence-based approach that will help doctors to identify genes tied to neurodevelopmental disorders. Continue reading.

5. Houston's top 25 business and civic leaders named by local organization

The Center for Houston’s Future will celebrate its first Top 25 Business/Civic Leadership Forum Alumni group all year, kicking off with an event this week. Photo via Getty Images

As part of its 25th anniversary celebrations, the Center for Houston’s Future has named its first-ever group of Top 25 Business/Civic Leadership Forum Alumni, including energy transition CEOs and legendary craft brewery founders.

The group was selected from among 1,400 alumni of the Center for Houston's Future's Leadership Forum, which hosts two cohorts per year, bringing together leaders from across industries to focus on issues critical to the long-term success of Greater Houston. Continue reading.

Harris County now boasts a population of more than 5 million. Photo via Getty Images

Harris County booms with 3rd biggest population in U.S.

Boomtown

Newly released U.S. Census Bureau data has revealed Harris County became the third most populous county nationwide in 2024, and it had the highest year-over-year growth rate from 2023.

The new population report, published this month, estimated year-over-year population data from 2023 to 2024 across all 3,144 U.S. counties, and 387 metro areas.

Harris County's numeric growth rate outpaced all other U.S. counties from July 1, 2023 to July 1, 2024, the report found. The Census Bureau estimated Harris County's population grew by 105,852 people year-over-year, bringing the total population to 5,009,302 residents. That's around a 2.16 percent growth rate.

Los Angeles County, California (No. 1) and Illinois' Cook County (No. 2) are the only two U.S. counties that have larger populations than Harris County. Los Angeles County now boasts a population of nearly 9.76 million, while Cook County's has increased to more than 5.18 million people.

The top 10 most populous counties in the U.S. are:

  • No. 1 – Los Angles County, California
  • No. 2 – Cook County, Illinois
  • No. 3 – Harris County, Texas
  • No. 4 – Maricopa County, Arizona
  • No. 5 – San Diego County, California
  • No. 6 – Orange County, California
  • No. 7 – Miami-Dade County, Florida
  • No. 8 – Dallas County, Texas
  • No. 9 – Kings County, New York
  • No. 10 – Riverside County, California

Montgomery County also ranked among the top 10 U.S. counties with the highest numeric growth, ranking 9th nationally after gaining 34,268 residents from 2023 to 2024. Montgomery County's population has now grown to 749,613 people.

In the report's national comparison of counties with the largest population growth by percentage, Montgomery County ranked No. 7 with a year-over-year growth rate of 4.8 percent.

Most populated U.S. metro areas

The U.S. Census Bureau additionally found Houston-Pasadena-The Woodlands nearly led the nation as the second-fastest growing metro area in 2024.

From July 2023 to July 2024, the Houston metro added 198,171 residents to bring the total population to 7,796,182.

New York-Newark-Jersey City was the only metro area to outpace Houston's growth during the one-year period. The New York-New Jersey metro added 213,403 new residents, which brought the total population to over 19.94 million last year.

Kristie Wilder, a Census Bureau Population Division demographer, said in the report that the nation's population growth in its major metros was largely impacted by international migration rather than changes in birth rates.

"While births continue to contribute to overall growth, rising net international migration is offsetting the ongoing net domestic outmigration we see in many of these areas," Wilder said.

Dallas-Fort Worth-Arlington was right behind Houston as the third-fastest growing U.S. metro in 2024. The Metroplex gained 177,922 residents last year, and now has a total population of more than 8.34 million.

The top 10 U.S. metros with the highest numeric growth from 2023 to 2024 are:

  • No. 1 – New York-Newark-Jersey City, New York-New Jersey
  • No. 2 – Houston-Pasadena-The Woodlands, Texas
  • No. 3 – Dallas-Fort Worth-Arlington, Texas
  • No. 4 – Miami-Fort Lauderdale-West Palm Beach, Florida
  • No. 5 – Washington-Arlington-Alexandria, D.C.-Virginia-Maryland-West Virginia
  • No. 6 – Phoenix-Mesa-Chandler, Arizona
  • No. 7 – Orlando-Kissimmee-Sanford, Florida
  • No. 8 – Atlanta-Sandy Springs-Roswell, Georgia
  • No. 9 – Chicago-Naperville-Elgin, Illinois-Indiana
  • No. 10 – Seattle-Tacoma-Bellevue, Washington
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This article originally appeared on our sister site, CultureMap.com.

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Houston ranks among world’s top 30 emerging startup ecosystems

Startup Status

Long known as the Energy Capital of the World, Houston also ranks among the world’s top 30 emerging startup ecosystems, according to a new report.

The report from Startup Genome, a research and advisory organization, doesn’t assign a specific numeric ranking to Houston’s startup ecosystem. Rather, it puts Houston in the ranking range of 21 to 30 for emerging ecosystems. Startup Genome weighed factors such as early-stage funding, performance and talent to identify the top emerging ecosystems.

Houston also gained notice for being one of the world’s 20 emerging ecosystems with at least four unicorn startups in the past 10 years. Houston and nine other ecosystems each had four unicorns.

According to StartupBlink, a startup research platform, Houston’s startup ecosystem grew 24 percent in 2025, with over 1,300 startups and total startup funding exceeding $808 million. StartupBlink places Houston at No. 46 among the world’s top 100 startup ecosystems.

In a recent post on LinkedIn, David Horsup, executive in residence at the Rice Alliance Clean Energy Accelerator, wrote that Houston “has all the ingredients to be wildly successful if it stays true to its differentiated pillars that drive the economy — energy, medical, and aerospace.”

Mumbai topped Startup Genome’s list of emerging ecosystems, followed by Istanbul, Madrid, Salt Lake City-Provo and Barcelona. After Salt Lake City-Provo, the top U.S. ecosystems were Phoenix, Detroit, Minneapolis and Las Vegas.

Silicon Valley led Startup Genome’s ranking of the world’s top established ecosystems, followed by New York City, London, Tel Aviv and Boston. Austin landed at No. 18 in this category and Dallas at No. 27.

“For much of the past decade, this report has chronicled the welcome dispersion of opportunity beyond the traditional hubs,” Startup Genome writes. “That trend has not died — but it has been complicated. Capital and scale are consolidating once more, particularly in the United States, and the gap between leading and emerging ecosystems is widening.”

KBR names C-suite duo to lead $5.3B government services spinoff

new leaders

In advance of the spinoff of its Mission Technology Solutions unit, Houston-based KBR has made two C-suite hires for the new business.

Michael LaRouche is coming aboard as president and CEO of the spinoff, currently called SpinCo, on Sept. 26. Nicholas Veasey is joining as executive vice president and chief financial officer on July 1.

“Michael and Nick bring a highly complementary combination of operational leadership, financial expertise, and mission-driven experience, and together they will accelerate our impact for stakeholders,” Stuart Bradie, chairman, president and CEO of publicly traded KBR, said in a news release.

LaRouche currently is CEO of Serco North America, a Herndon, Virginia-based government services contractor. Veasey most recently was CFO of MAG Aerospace, a Fairfax, Virginia-based defense contractor.

SpinCo, a government services contractor, will launch with more than $5.3 billion in annual revenue and 20,000 employees. KBR’s total headcount is around 36,000. Branding for SpinCo, including a formal name, will be revealed in July.

“SpinCo is positioned as a top-tier provider of differentiated technology solutions, anchored by deep mission expertise, global scale, and a relentless commitment to delivering for our customers,” LaRouche says.

After the spinoff, the slimmed-down KBR will focus on its Sustainable Technology Solutions business, a provider of energy and industrial technology that generated $2.5 billion in revenue in 2025. Bradie will remain chairman, president and CEO of the business.

Both SpinCo and the new KBR will be public companies. The spinoff is scheduled to be completed in January.

Experts: Houston's VC ecosystem has set the foundation — now we need scale

guest column

Fervo Energy went public earlier this summer. The Houston geothermal company priced its IPO at $27 per share, raised $1.89 billion, and opened the next morning at a market capitalization north of $10 billion. By most measures, it is the largest venture-backed cleantech IPO in history and an unambiguous win for Houston. It’s also a useful moment to look at where Houston's venture ecosystem stands and where it can go. The highlight: Houston's venture ecosystem has real foundations and, with increased company formation activity, can grow into the scale our city's ambitions deserve.

A Houston energy story in the national recovery

The recent uptick in Houston venture activity follows national trends. U.S. venture deal count contracted roughly 22 percent from its 2021 peak through 2024 before rebounding to about 16,700 rounds in 2025. Houston's 23 percent increase in VC funding from 2023 to 2024 is part of a national recovery of comparable magnitude over the same time window.

The energy sector is where Houston exhibits unique trends—and where the story turns clearly positive. (Houston's strong health and space sectors deserve their own separate consideration.) By deal count, energy-related rounds have accounted for 15 to 20 percent of Houston activity, roughly consistent over the past few years.

By capital, energy's share surged from about 14 percent in 2023 to over 60 percent in 2025, driven by a small number of large Houston-headquartered rounds, primarily in geothermal and related technologies. Fervo is the obvious anchor, but Sage Geosystems, Quaise Energy, Zeta Energy, Vaulted Deep, Applied Carbon and Mariana Minerals have all closed meaningful rounds. Houston is concentrated and accelerating as an energy capital market, an invaluable position to build upon.

From foundation to scale

The institutional pieces are in place. Greentown Labs, Activate, the Ion and others have built sector-specialized infrastructure most cities would struggle to assemble. Fervo itself is an alum of both Activate and Greentown Labs. Mercury Fund closed its $160 million Fund V, its largest ever. Houston Angel Network, GOOSE Capital, Fathom Fund, and broader pre-seed and seed capital coverage are here. The Houston $10 million-plus Series A list now includes 40 rounds since 2021, which break roughly into two eras. While 2021 to 2022 was biotech-heavy, with companies like Sporos Bioventures, RadioMedix, Cellenkos and Coya Therapeutics, 2024 to 2025 has tilted clearly toward energy, climate, and critical minerals, with Vaulted Deep, Applied Carbon, Mariana Minerals, Sage Geosystems and Ignis H2 Energy among them.

What’s less developed is the volume of seed-stage companies flowing into that capital. Imagine a dozen more Fervos coming out of that infrastructure over the next decade, each generating jobs, recycled founder capital, and the next wave of operators and angel investors. That is the kind of opportunity Houston has within reach if we build the company-formation pipeline to feed it. To be relevant on the national stage as a venture market, and to drive an economy the size of Houston's into the 2030s, the city needs to be doing closer to 20 Series A rounds per month rather than per year. That throughput implies roughly 1,000 seed rounds per year, feeding the funnel at a 20 percent to 30 percent graduation rate. Reaching such throughput depends on how many new founders Houston produces and how quickly our innovation ecosystem can help them achieve lift-off.

Houston in context

The comparative picture brings the scaling challenge into focus. Between 2021 and 2024, Houston-area startups closed between 126 and 153 disclosed venture rounds per year, against a national count between 9,854 and 14,125. That places Houston at a little over 1 percent of the U.S. deal count. For comparison, Austin ran about three times Houston's deal count each year.

At the Series A level, Houston closed between 12 and 24 rounds in any given year. The median Houston Series A across the period was about $10.7 million, compared with $15.4 million in San Francisco. Houston founders are raising fewer and smaller Series A rounds than founders in peer metros, which points directly to where Houston has the most room to grow.

The unicorn picture tells the same story. From 2021 through 2025, the U.S. produced 590 venture-backed unicorns. Four were Houston-based: Solugen and Axiom Space in 2021, Cart.com in 2023, and Fervo Energy in 2024. Adding HighRadius from 2020 brings Houston's all-time total to five. Austin added 19 over the same five-year window. The path from here is to make Houston's entries on lists like these less the exception and more the rule.

Where this leads

Houston has a real opportunity to become the deepest, most credible energy and climate capital market in the country, with the company formation, talent and operator density to support it. The data shows the foundation is already in place. Fervo, Solugen and the growing roster of energy-adjacent Series A graduates are proof. Fervo's IPO is the first of what should be many. Houston has not had a venture-backed cleantech liquidity event of this scale before, and the city now has one to reference, recruit against and build on. With increased company formation at the seed and pre-seed stages, a Fervo-scale outcome need not be a generational event in Houston, but instead, it can become part of a chain reaction powering the city's economy.

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Stephanie T. Schmidt, PhD, is the founder of a stealth startup, a Venture Fellow at Energy Transition Ventures, and an Executive MBA candidate at Rice University's Jones Graduate School of Business. Lawson Gow is the Chief Operating Officer of Greentown Labs. The full Houston VC landscape report is available at Energy Transition Ventures and CleanTech.Org.

Sources: Crunchbase, PitchBook-NVCA, Carta
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