Remote workers in Houston earn far more than commuters, data shows

by the numbers

Remote workers in Houston earn 40 percent more than their commuting counterparts, according to recent data from the U.S. Census Bureau. Photo via Getty Images.

In the Houston metro area, it pays to work from home.

Data published recently by the U.S. Census Bureau shows remote workers in the Houston metro earn 40 percent more than their commuting counterparts. For remote workers in the Houston area, median earnings stood at $67,500 in 2023, compared with $48,200 for other workers.

Federal data cited by Visual Capitalist indicates 11.8 percent of the Houston area’s labor pool, or nearly 460,000 people, were remote workers in 2023.

In the Dallas metro area, the difference in median earnings between remote workers and non-remote workers is even more stark. According to Census Bureau data, remote workers there earned $77,000 in 2023 — 50.7 percent more than the $51,100 for traditional workers.

Why the wide gap in pay? The Census Bureau says remote workers are more likely to be older, more likely to be white and less likely to live below the poverty line. All of these traits contribute to higher income.

Among home-based workers in the country’s five biggest metros, median earnings for remote workers were highest in the New York and Chicago areas (over $80,000) and lowest in the Houston area (under $70,000), according to the Census Bureau.

The five-metro comparison also reveals that the Houston area had the highest share (6.8 percent) of all workers, both remote and non-remote, living below the federal poverty level.

In a recent Substack post, urban planner Bill Fulton notes that remote workers in major cities typically earn 50 percent to 80 percent more than other workers do. He declares that “remote workers are far more affluent than everybody else. They are, of course, office workers, not blue-collar or service workers, and they tend to be more highly educated.”

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A growing number of independent professionals call Houston home. Photo via Pixlr

Houston clocks in as one of the fastest-growing cities for freelancers

WFH FTW

Visitors to Memorial Park on an early weekday afternoon probably have to stop and wonder where all these people are coming from. Don’t they have work to do?

Maybe they do, but on their own schedules. Fiverr, a marketplace for connecting freelancers and new clients, released its fifth annual Freelance Economic Impact Report, ranking Houston as the tenth fastest-growing city for freelancers.

According to the report, some 144,000 workers in Houston made $6.6 billion. That means the Bayou City led Texas with around $46,000 for per capita income.

Elsewhere in Texas, Austin came in as the fourth fastest-growing city for freelancers. The city's 77,262-person independent workforce earned $3.4 billion in 2021. In Dallas, which came in at No. 8, some 177, 500 workers made $7.6 billion.

Joining Houston, Austin, and Dallas in the top 10 were:

1. Orlando, Florida
2. Nashville, Tennessee
3. Miami, Florida
5. Tampa, Florida
6. Las Vegas, Nevada
7. Charlotte, North Carolina
9. Portland, Oregon

Although on the surface the report focuses on geography, it collected data that shows eight out of 10 freelancers believe they can live anywhere and work anytime. However, fewer than half reported that it was “a primary factor” in becoming freelancers, and a third said that work was “a primary influence” in their choice of location.

Most important, 70 percent of respondents said they were “highly satisfied” with working independently.

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This article originally ran on CultureMap.

Looking back at months working from home, what did employees miss most from the workplace? Graphic via UH.edu

What do workers miss most about the office? University of Houston explains

houston voices

The commute, the water cooler talks, the in-person meetings. Have we missed these things? Or can the research enterprise, for the most part, stay virtual?

“Many people who have been working from home are experiencing a void they can’t quite name,” said Jerry Useem in The Atlantic. Maybe getting back to our old routine will do us good.

Tracy Brower in Forbes wrote, “Many of the reports of increased productivity were early in the pandemic. Some have dubbed this ‘panic productivity,’ attributing the early perception of increased productivity to the adrenaline boost people got from the sudden shifts in the nature and location of their work. Job loss was rife, and people may have been working like crazy in the hopes of staying visible, relevant and ensuring their boss thought they were still adding value even from home. But in the words of W. B. Yeats: “Things fall apart.”

Studies are showing now that we’ve hit our breaking point a year and a half into the work-from-home onset. What do we miss the most?

The commute

It can’t be the commute. Or can it? The work-from-home boom will lift productivity in the U.S. economy by five percent, mostly because of savings in commuting time, said Enda Curren in Bloomberg.

But Useem wrote specifically about commuting, and what he found was incredible: in 1994, an Italian physicist named Cesare Marchetti noted that throughout history, humans have shown a willingness to spend roughly 60 minutes a day in transit. This explains why ancient cities such as Rome never exceeded about three miles in diameter. The steam train, streetcar, subway and automobile expanded that distance. But transit times stayed the same. The one-way average for an American commute stands at about 27 minutes.” What are these 27 minutes, on average, good for?

There are people who love to drive — it gives them a sense of control regarding their day. On your morning commute, especially if you take mass transit, you can clear your head, decompress, make errand-esque phone calls or listen to audiobooks and podcasts. That’s not all we miss, though.

The office

Michael Scott on the television show, “The Office,” said he makes “20 little trips to the cooler” and recounts the “20 little scans I do of everybody to make sure everything’s running smoothly, and the 20 little conversations I have with Stanley.”

We may take considerably fewer coffee or water breaks than they are used to at the fictional Dunder Mifflin, but that doesn’t mean it isn’t healthy to stand up, stretch and make small talk with a co-worker for a short spell.

According to SparkHire.com, fostering a sense of office camaraderie helps teams to perform better, improves their ability to work as a team and boosts employee retention rates. And university environments are meant to be experienced in person. The public art on campus, the leaves in the fall, all of the sensory cues that remind us we are in a collegiate atmosphere matter.

The doppleganger

Next, lets introduce the concept of the double self: the work self and the home self. One needs to transition to the other.

Jon Jachimowicz of Harvard Business School was quoted in the Atlantic as saying: “If you respond like a manager at home, you might be sleeping on the couch that night. And if you respond like a parent at work, its weird.”

So, it behooves us to make a real, tangible transition from home life to work life. If your institution has not opened back up yet, you can do this by dressing like you would at work. It will make doing chores around the house less tempting if you’re dressed for your actual job. There are other things you can say to yourself or rituals you can perform to get ready for working from home.

These are readily supplied as you actually get back to the office or the lab. Showering, coffee stops, small talk in the elevator all signal that our day is really beginning.

The thank you note

Some researchers were deemed essential workers and never worked from home, and even started shifts that were different from their older routines. Much research work needed to occur in actual lab spaces. If this applies to you, then consider this a thank you card from your colleagues who want you to know that while some of us were zooming and plugging away on computers at our kitchen tables, we acknowledge the struggle it was for you to cover every shift, every day.

For instance, David Brammer, D. V. M. , DACLAM, of University of Houston Animal Care Operations said of his staff: “Excellence is difficult to define but unmistakable when observed. Within Animal Care Operations, I have found excellence. He went on to say that his staff encountered a variety of challenges, all while maintaining the highest standard for animal care. “By adjusting to the new normal rather than abandoning standards, focusing on the completion of tasks, working hard and staying positive, the staff of ACO successfully set an example for others to follow.”

One last thought

It definitely comes down to what your institution’s leadership has decided about back-to-work schedules, whether they be full time on-campus, at-home or hybrid. There’s something to be said for being able to adapt when in a pinch. It doesn’t necessarily mean, though, that things can’t transition back to the way they once were. Versatility, remember, is an indispensable trait.

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This article originally appeared on the University of Houston's The Big Idea. Sarah Hill, the author of this piece, is the communications manager for the UH Division of Research.

Gotta love that WFH life. Photo by Maskot/Getty

Houston plugs in as hot spot in ranking of best cities for remote workers

workin' it

If you're a remote worker living in Houston, you might just want to stay put. A new ranking puts Houston high on the list of the best cities in the U.S. for remote workers.

The Bayou City comes in at No. 11 overall in LawnStarter's new ranking for remote-work ranking.

For its list, Austin-based outdoor services provider LawnStarter examined data for 194 of the biggest U.S. cities covering 20 factors, including remote job opportunities, internet connectivity, cost of living, and availability of personal workspace.

Elsewhere in Texas, Frisco tops the list of the best cities in the U.S. for remote workers, followed by Dallas (No. 3), Arlington (No. 4), Austin (No. 6), and Plano (No. 8).

Here are LawnStarter's 20 best cities for remote workers:

Frisco
Naperville, Illinois
Dallas
Arlington
Atlanta
Austin
Tampa, Florida
Plano
Raleigh, North Carolina
Cincinnati
Houston
Nashville
Cary, North Carolina
Chicago
Denver
Salt Lake City
Charlotte, North Carolina
San Antonio
Arlington, Virginia
Seattle

Jeff Herman, editor in chief at LawnStarter, tells CultureMap that overall, the Texas' lack of an income tax and solid quality of life boosted all of the states' cities in the top 20, he says.

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This article originally ran on CultureMap.

Some 49 percent of Houston workers are burned out at work. Getty Images

Nearly half of Houston workers complain of serious burnout, says new report

working hard

Local workers who're especially dreading that commute or cracking open the laptop in the morning aren't alone. A new study reveals that nearly half of Houston laborers are more burned out on the job.

Some 49 percent of Bayou City residents report to be burned out at work, according to employment industry website Robert Half. That's significantly higher than last year, when only 37 percent reported burnout in a similar poll.

Meanwhile, more than one in four Houston workers (28 percent) say that they will not unplug from work when taking time off this summer.

Not surprisingly, American workers are ready for a vacation. Per a press release, the research also reveals:

One in four workers lost or gave up paid time off in 2020
One in three plans to take more than three weeks of vacation time this year

Elsewhere in Texas, the burnout is real. In Dallas, 50 percent of workers report serious burnout. More than a quarter — 26 percent — of Dallasites fear they won't disconnect from the office during summer vacation.

In fun-filled Austin, 45 percent of the workforce complain of burnout. Some 32 percent of Austinites feel they can unplug from work during the summer.

Fortunately for us, the most burned-out city in the U.S. isn't in the Lone Star State. That dubious title goes to the poor city of Charlotte, North Carolina, where 55 percent of laborers are truly worn out.

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This article originally ran on CultureMap.

Edward Henigin, CTO of Data Foundry, sums up what he thinks the future of work from home will look like. Photo by Maskot/Getty

Texas expert: What does the future of remote work look like?

guest column

Since the start of the pandemic, the idea that this event will change the way we live and work now and, in the future, has been a on the minds of everyone.

It's true that remote work has become a mainstay of day-to-day operations, and now the traditional offices are looking more and more like the office environment of the past. In a recent survey published in July 2020, it revealed that before the pandemic, only 17 percent of responding U.S. employees worked from home at a rate of five days or more per week. At the time, this survey was conducted in April, however, that share had increased to 44 percent. Even as pandemic response developed, a Gallup poll from October revealed that 33 percent of U.S. workers were still working remotely.

So, the question remains: What will the future of remote work look like for enterprises?

Changes we've seen so far

Businesses have already been finding their footing with the assistance of an array of platforms and solutions, all of which have helped them pivot quickly and successfully through the use of more digital means. Right now, we see that cloud-based collaborative applications like Microsoft Teams, Slack, and Zoom (which had its daily user numbers more than quadruple by April 2020) have become the backbone of many new workplace IT strategies, offering an ability to bridge the distance and ensure seamless cooperation.

Meanwhile, to keep a growing number of endpoints and devices secure as employees use home networks and personal computers to log onto work environments, Virtual Private Networks (VPNs) have become key. Studies show that VPN usage increased by 124 percent in the U.S. between March 8 and March 22, 2020. This can be attributed to the technology's ability to help businesses ensure protected file sharing, data encryption, secure remote access, and more. These are all crucial elements for keeping the expanding footprint of the enterprise network safe.

Finding a balance

There is no one-size-fits-all approach to managing remote work transitions. Some businesses will require more on-site work while others may make a more comprehensive transition away from central office locations. As we move forward, it's likely that we'll see many organizations settle somewhere in the middle with a hybrid strategy that allows distanced operations where feasible and on-site work where needed.

Overall, it's clear that across these many different applications and use cases, the importance of digital infrastructure has increased. Regardless of what platforms or services are in use, the network and other foundational IT infrastructure have become central to success as businesses expand their bandwidth needs, incorporate data-centric solutions, and depend on reliable, speedy communications. It will be crucial moving forward that businesses not only adapt to the challenges they currently face, but plan for a flexible long-term work strategy.

Understanding how the company will need to function and what services it will need to achieve success in any given strategy will be paramount, and after an individualized vision is developed, technology action plans will need to start rolling out. For some this may mean adjusting IT equipment environments (like moving on-premises data center assets to outsourced facilities), for others this may mean expanding their networks or implementing new cloud-based connectivity.

All in all, agility and flexibility are at the core of the reimagined enterprise, and planning is the enabler of both these business virtues. Now is the time to look forward, not only for the sake of preparation, but for the sake of keeping our eyes on a brighter, stronger, and more dynamic future.

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Edward Henigin is CTO at Austin-based Data Foundry, which has a growing data center location in Northwest Houston.

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Elon Musk's SpaceX is about to make its debut on Wall Street

Money Moves

Elon Musk's rocket company SpaceX will make its debut on Wall Street Friday, June 12, and both institutional and retail investors are expected to gobble up the 555.6 million shares going up for sale at $135 apiece. Musk, already the world's richest man, could become its first trillionaire.

SpaceX is likely to become the biggest IPO ever, with proceeds of around $75 billion. SpaceX hopes to become the first company to send people to Mars. In fact, part of Musk’s future compensation depends on SpaceX eventually establishing a colony of at least 1 million people on the red planet.

Why SpaceX is going public now

In a video conference on Musk's social media platform X, he told JPMorgan CEO Jamie Dimon that people have suggested for the last 10 years that he take SpaceX public. He's doing it now because the company plans to put 100,000 next-generation Starlink satellites into orbit. Deploying AI data centers in space is a “massive new growth base and you need capital for that,” he said.

Going public provides access to the capital that SpaceX needs. But it also exposes it to more scrutiny from shareholders and more regulatory oversight. That includes filing quarterly financial reports, which critics say incentivizes short-term thinking over longer-term planning and creates unnecessary costs for a company. Securities regulators are currently soliciting public comment on a proposal to require public companies to file the financial reports only twice every year.

How the IPO impacts the company

Musk will hold the majority of a special class of shares, giving him control over decisions related to company strategy, finances and personnel. On the latter, because of his ownership of most of these Class B shares, the only person who can fire Musk as CEO is Musk.

The company credits Musk with being the “driving force” behind its growth, innovation and success. But what happens if Musk is no longer in the picture? SpaceX warns that the loss of Musk could disrupt its ability to execute its strategy as well as hurt its “reputation and relationships with customers, partners and other stakeholders.”

The company also warns that finding a replacement with the same skills and experience as Musk would be time-consuming, if not nearly impossible. As Wedbush Securities analyst Dan Ives wrote Wednesday, “At the end of the day Musk is SpaceX and SpaceX is Musk.”

What could make or break SpaceX

Currently in the test phase, the gigantic reusable Starship rocket is key to SpaceX realizing Musk's ambitions. Much of the commercial space business hinges on SpaceX developing Starship’s capability to be fully reusable and hearty enough for a quick turnaround between flights. If that doesn't happen, SpaceX warns that putting data centers and satellites in space will take longer and cost more money, meaning it risks customers bailing on the company.

Analysts say that by pioneering reusable rockets, SpaceX has established a clear lead on competitors such as Blue Origin, led by Amazon founder Jeff Bezos. The Starlink satellite business competes with, among others, AST SpaceMobile – which is relying on a SpaceX rocket to send its latest generation of satellites into orbit next week.

The prospectus filed last week says SpaceX’s biggest potential market is the sale of business-oriented artificial intelligence products designed to transform how people get work done. It’s an opportunity SpaceX predicts would be worth $22.7 trillion if it could somehow dominate rivals like Anthropic, OpenAI and Microsoft in a highly competitive industry. But the prospectus shows no clear path to profitability for the xAI business, which merged with SpaceX earlier this year.

Why Wall Street is paying attention

If the SpaceX IPO is as successful, the stock could quickly join the Nasdaq 100, a widely followed index that tracks the 100 largest non-financial companies in the composite. That's important because some popular funds, such as the $460 billion QQQ exchange-traded fund, mimic the index and will automatically buy whatever is listed in the index.

Nasdaq recently changed its rules to allow select companies to enter the Nasdaq 100 after just 15 trading days.

S&P Dow Jones Indices, on the other hand, is sticking to established and more traditional thresholds that will not allow SpaceX or other companies with gargantuan IPOs faster entry into its S&P 500 index. That means even high-profile companies will still need to wait for their stocks to trade a full 12 months before they can enter the index.

Companies want to be in the S&P 500 in particular because it's arguably the most important index on Wall Street, with trillions of dollars either mimicking it exactly or benchmarked against it. Vanguard's VOO fund that tracks the S&P 500 has roughly $950 billion invested in it, for example.

NASA unveils Artemis III astronauts at Johnson Space Center in Houston

To the moon

NASA on Tuesday, June 9, revealed the crew for its Artemis III mission, the next step in the space agency's plan to eventually land astronauts on the moon.

The announcement came two months after Artemis II's record-breaking trip around the moon that surpassed the distance record of Apollo 13.

NASA's Randy Bresnik, Frank Rubio, Andre Douglas and the European Space Agency's Luca Parmitano won't fly to the moon or land on the surface. Instead, they’ll orbit Earth while practicing docking their Orion capsule with two lunar landers.

“To the Artemis III crew, we wish you Godspeed on the journey ahead,” said NASA administrator Jared Isaacman.

Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin are racing to deliver the lunar landers. The two-week demo is targeted for 2027. Blue Origin suffered a recent setback when its massive rocket exploded during an engine-firing test on the launch pad in Florida, shaking nearby homes and illuminating the sky with an orange fireball.

NASA's Jeremy Parsons said the setback is a learning opportunity and that the space agency is confident Blue Origin's rocket will be ready in time.

NASA's Artemis program aims to return astronauts to the moon's surface for the first time since the 1970s. A recent revamp of the program announced by Isaacman aims to fast-track it similarly to the Apollo era, adding the upcoming spaceflight around Earth before eyeing a lunar landing in 2028.

“We are certainly humbled as a crew to be able to be your crew that executes this Artemis III mission in space,” said Bresnik, Artemis III commander.

Added Douglas, mission specialist: “My brain — it is going a mile a minute right now. But my heart, it is so warm. It is so full."

In May, NASA awarded hundreds of millions of dollars in contracts to four companies, including Blue Origin, to build landers, rovers and drones for a future moon base. Isaacman said the goal of the moon base is to lay the foundation for a Mars expedition.

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INNOVATIONMAP EMAILS ARE AWESOME

by the numbers

WFH FTW

houston voices

The commute

The office

The doppleganger

The thank you note

One last thought

workin' it

working hard

guest column

Changes we've seen so far

Finding a balance

CultureMap Emails are Awesome

Houston HQs

Money Moves

Why SpaceX is going public now

How the IPO impacts the company

What could make or break SpaceX

Why Wall Street is paying attention

To the moon