Texas isn’t just growing — its economy is getting richer per resident

Economy

Texas isn’t just growing — its economy is getting richer per resident

The Lone Star State posted a sharp jump in economic output per resident, a key measure of rising prosperity

Amanda Macias Fox News

Published

January 30, 2026 6:00am EST

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‘We say yes to business’: Texas Association of Business reveals why companies choose Texas

Megan Mauro of the Texas Business Association tells Fox News Digital that low taxes and light regulation are key drivers of business migration to the Lone Star State.

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Everything’s bigger in Texas — including its economy. And it’s not just because more people are moving there.

Strip out population growth and Texas is generating thousands of dollars more per resident than it did just three years ago.

That kind of growth matters politically. It signals rising living standards, a stronger tax base and greater leverage to fund infrastructure, education and other priorities without raising taxes. Texas’ success story gives Republicans a clear example to argue that low taxes, light regulation and strong energy production deliver real economic advantages, not just population churn.

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A cowboy on a horse kicks off a rodeo by riding around an arena with a US flag.

A horse rider waving the American flag takes part in the opening of a county fair and rodeo on Oct. 23, 2025. (Jakub Porzycki/Anadolu/Getty Images)

Those gains show up clearly in the data. The Lone Star State saw a 10.1% increase in economic output on a per-capita basis from 2021 to 2024, based on calculations using Bureau of Economic Analysis and U.S. Census figures.

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In dollar terms, Texas boosted economic output per resident from roughly $64,000 to nearly $71,000. Even states with far larger economies, including California, didn’t see the same growth per person, with California’s rising far more modestly, from about $80,000 to $84,000.

Looking at growth for residents helps distinguish economies that are truly getting stronger from those that are simply getting bigger. Texas falls firmly in the former camp, undercutting the argument that its rise is merely a demographic mirage.

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Texas Gov. Greg Abbott smiles during a bill signing in Austin

Gov. Greg Abbott laughs upon arrival during a bill signing in the State Capitol on April 23, 2025 in Austin, Texas. (Brandon Bell/Getty Images)

Even within the fast-growing Sun Belt, Texas outpaces peers like Florida and Arizona, which also benefit from migration but posted smaller per-resident gains.

That distinction carries political weight heading into 2026.

With the midterm election cycle approaching, Texas’ per-resident gains give Republicans a concrete way to argue that their policy mix delivers stronger growth as Democrats push for a larger federal role.

Everything may be bigger in Texas — but the data suggest its economy is also getting stronger.

Amanda covers the intersection of business and politics for Fox News Digital.

Texas isn’t just growing — its economy is getting richer per resident