edging back

Houston's post-pandemic economy slowly creeping back, new study says

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Things seem to be ever-so-slowly improving.

While COVID-19 cases are alarmingly surging in Texas, here in Houston, businesses are slowly returning to a new normal (for now). So, just how well is the Bayou City recovering economically from the pandemic, compared to other big-city counterparts around the United States and in Texas?

So-so, according to a revealing new report.

A new list, published July 29 by financial advice website SmartAsset, ranks the U.S. cities with the strongest economic recoveries from the pandemic.

SmartAsset looked at five data points for 49 of the largest U.S. cities to determine the economic winners:

Percentage change in consumer spending
Percentage change in small businesses that are open
Percentage change in small business revenue
Percentage change in job postings
March 2021 unemployment rate

Houston performed slightly better than the studywide average in three of the metrics, (although some of the numbers still look pretty bleak). The Houston stats are:

1. Change in consumer spending (January 2020-April 2021)

Houston: 11.7 percent
Studywide average: 7.3 percent

2. Change in small businesses open (January 2020-April 2021)

Houston: -34.5 percent
Studywide average: -32.51 percent

3. Change in small business revenue (January 2020-April 2021)

Houston: -36.6 percent
Studywide average: -30.9 percent

4. March 2021 unemployment rate

Houston: 10.6 percent
Studywide average: 6.6 percent

Elsewhere in Texas, The SmartAsset ranking puts Dallas at No. 19, and Fort Worth, at No. 11. Among the most populous cities in the SmartAsset study, Dallas ranks highest. Austin lands at No. 23 for pandemic economic recovery, with San Antonio at No. 38.

Only one other Texas city, El Paso, appears in the top 20 (No. 8). Salt Lake City, Utah tops the list.

University of Houston's Bauer College of Business recently analyzed Houston's pandemic recovery. In its report, the Bauer study notes a bigger bounce-back in the U.S. than Houston — and that oil and gas downturns selectively hurt Houston more than the rest of Texas.

In some good news, the Bauer study reports the biggest sectors that have the biggest recoveries: healthcare, retail, and food service.

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Editor's note: It's time to look back at the top Houston news of the week, including restaurant openings and a major acquisition for MFAH. Plus, where to celebrate New Year's Eve in Houston. Catch up on our most popular stories below, then visit this guide to the best Christmas weekend events.

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4. Houston museum acquires historic Masonic lodge property for new greenspace. The Museum of Fine Arts, Houston has acquired a prime parcel to expand its campus in the Museum District.

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5. Houston's richest residents, best suburbs, and more top city news in 2025. As 2025 comes to a close, we're looking back at the stories that defined Houston this year. These are the City Life stories that captured Houston's attention.