income growth news
This is how much Houston's household income has changed in a year
Houston's median household income isn't keeping up with the national median, SmartAsset found.
A new income study by SmartAsset examining the one-year change in income for households in the country's biggest cities has determined Houston had the 35th biggest increase in median income nationwide from 2023 to 2024, at 2.75 percent.
Last year, Houston households made $64,361 in median annual income, compared to $62,637 in 2023.
SmartAsset's new report, "U.S. Cities With the Highest Income Growth," also tracked the changes in senior and family household income across the 50 most populated U.S. cities from 2023 to 2024. Data was sourced from the U.S. Census Bureau's 1-Year American Community Survey from the last two years.
Tampa, Florida had the highest growth in its residents' household income nationwide, at 15.46 percent. Tampa households earned a median $72,851 in annual income in 2023, and that figure increased to $84,114 in 2024.
Unfortunately, Houston's median household income isn't keeping up with the national median. The report said the national median household income grew 1.3 percent to $83,730 in 2024. That's $19,093 more than what the median Houston household made last year.
"This means many households did not keep pace with the roughly 3 percent inflation rate during the same time period, but that was not true everywhere," the report's author wrote. "Especially in large cities where residents often pay a premium for convenience, infrastructure and amenities, the change in household income swung vastly, in some cases reaching double-digit growth, or even negative growth."
Though the overall median household income in the city increased, Houston families will be feeling the sting after their median annual income fell 4.43 percent from 2023 to 2024. Last year, the median Houston family earned $60,027 in annual income, compared to $62,808 in 2023.
That's still enough money to be labeled "middle class" in 2025, but it's a far cry from the salary needed to earn a comfortable living. SmartAsset's separate study determined that the annual income for a family of four to live comfortably in Houston adds up to $206,669.
The report also noted that Houston's senior household income fell 0.76 percent during the one-year period. Houston seniors made $48,574 in median annual income last year, or $371 less than what they earned in 2023.
"Changes in incomes across a city can lead to different dynamics on local demand for businesses, job markets, and even have implications for how new tax legislation will affect residents," the report said.
