This analysis predates the COVID-19 crisis and the economic impacts that followed. It is offered as an overview of the Gulf Coast regional economy and a resource for comparative purposes.
The 13-county Gulf Coast region covers about 13,900 square miles in eastern coastal Texas, stretching from Huntsville on the north to Matagorda Bay and Galveston along the Gulf Coast.
The Gulf Coast region includes one metropolitan statistical area (MSA), the Houston-The Woodlands-Sugarland MSA, which includes the counties of Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery and Waller. Counties in the region not associated with an MSA include Colorado, Matagorda, Walker and Wharton counties. The region’s economic center is the city of Houston in Harris County.
This report examines regional economic trends including population, household income, jobs and wages, and education, as well as economic conditions unique to the Gulf Coast region.
Population
In 2019, the Gulf Coast region’s estimated total population was more than 7 million, or 25 percent of the state’s total population. This represented an increase of about 19 percent (more than 1 million people) since the 2010 Census. An estimated 65 percent of the region’s population is concentrated in Harris County. While the Houston-The Woodlands-Sugarland MSA accounted for almost 98 percent of the region’s population, the city of Houston alone accounted for 32 percent of the region’s population (and more than 8 percent of the state population).
From 2010 to 2019, the region’s population grew at a faster pace than that of the state as a whole (Exhibit 1). While the population of most counties in the region increased during this period, Fort Bend outpaced all others, growing by more than 38 percent — more than twice the rate of the state.
Exhibit 1
Gulf Coast Region Population by County,
2010 and 2019
County
2010 Census
Estimate
(as of July 2019)
Change 2010 to 2019
Percent Change
Austin
28,417
30,032
1,615
5.7%
Brazoria
313,166
374,264
61,098
19.5%
Chambers
35,096
43,837
8,741
24.9%
Colorado
20,874
21,493
619
3.0%
Fort Bend
585,375
811,688
226,313
38.7%
Galveston
291,309
342,139
50,830
17.4%
Harris
4,092,459
4,713,325
620,866
15.2%
Liberty
75,643
88,219
12,576
16.6%
Matagorda
36,702
36,643
-59
-0.2%
Montgomery
455,746
607,391
151,645
33.3%
Walker
67,861
72,971
5,110
7.5%
Waller
43,205
55,246
12,041
27.9%
Wharton
41,280
41,556
276
0.7%
City of Houston
2,099,451
2,320,268
220,817
10.5%
Houston-The Woodlands-Sugarland MSA
5,920,416
7,066,141
1,145,725
19.4%
Gulf Coast Region Total
6,087,133
7,238,804
1,151,671
18.9%
Texas Total
25,145,561
28,995,881
3,850,320
15.3%
Source: U.S. Census Bureau
Population Composition
According to the U.S. Census Bureau’s 2018 American Community Survey, the median age of the region and The Houston-The Woodlands-Sugar Land MSA both are on par with that of the state as a whole. While six of the region’s 13 counties had a median age significantly higher than the state’s median age of 34.2 years in 2018, its most populous county (Harris County, 32.9 years) is on par with the state, and Waller is one of the state’s “youngest” counties, with a median age of 28.8.
The Gulf Coast region’s total Hispanic population is 36.1 percent, just 2.5 percentage points lower than the state’s 38.6 percent Hispanic share (Exhibit 2). The region’s Black (not Hispanic) population share (16.8 percent) is more than 5 percentage points higher than the state’s (11.6 percent).
Household Income
The Gulf Coast region’s median household income in 2018 was $66,058. Texas’ household income is generally distributed among five income levels (Exhibit 3). Of more than 9 million Texas households, 21 percent had incomes of less than $25,000, while 17 percent had incomes above $125,000. In every region in the state, nearly 18 percent of households had an average income between $50,000 and $75,000. About 40.5 percent of the Gulf Coast region’s households had incomes of less than $50,000, versus about 44 percent of the state’s; the region also had significantly more households with incomes above $125,000 (21.5 percent) than the state.
Exhibit 2
Gulf Coast Region Population by Race and Ethnicity, 2018
Ethnicity
Gulf Coast Region
State Total
Hispanic
36.1%
38.6%
Black (not Hispanic)
16.8%
11.6%
White (not Hispanic)
38.1%
43.4%
Other
8.9%
6.3%
Source: U.S. Census Bureau
Exhibit 3
Gulf Coast Region and Texas Household Income Percentile, 2018
Income Level
Gulf Coast Region
State Total
less than $25,000
19.1%
21.1%
$25,000 to $50,000
20.8%
23.0%
$50,000 to $75,000
17.2%
17.9%
$75,000 to $125,000
21.4%
20.6%
more than $125,000
19.1%
17.4%
Source: U.S. Census Bureau
Regional Industries
In 2019, the Gulf Coast region accounted for nearly 26 percent of the state’s total employment, making the region the state’s second-largest employment base. Exhibit 4 lists the region’s industries with the greatest regional employment concentrations compared to the national average, as measured by location quotient (LQ). LQ represents an industry’s proportionate concentration in the region; an LQ greater than 1.0 means that industry employment is more concentrated in the region than nationally. A high LQ can identify industries that have a competitive advantage in the region, such as the ability to produce products more efficiently and of a higher quality.
Based on location quotients, the Gulf Coast region is a leader in the oil and gas extraction, pipeline transportation, and space research and technology industries.
Exhibit 4
Top 10 Gulf Coast Region Industries, 2019
Industry
LQ
Number Employed
Average Annual Wages
Oil and Gas Extraction
12.32
37,855
$237,471
Pipeline Transportation
10.63
11,549
$193,332
Space Research and Technology
7.98
2,917
$138,497
Support Activities for Mining
5.63
41,337
$136,289
Petroleum and Coal Products Manufacturing
4.35
10,379
$160,247
Water Transportation
2.63
3,760
$106,045
Heavy and Civil Engineering Construction
2.49
65,413
$82,373
Chemical Manufacturing
2.26
40,662
$137,867
Support Activities for Transportation
2.03
35,138
$67,363
Machinery Manufacturing
2.00
47,752
$99,443
Total - All Industries
0.99
3,089,418
$68,021
Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
U.S. Military Installation Impact
Texas has 14 U.S. military installations within its borders. In 2019, these bases directly employed more than 226,000 and supported nearly 634,000 jobs in all. They also contributed an estimated $75.3 billion annually to the state’s gross domestic product (GDP) (Exhibit 5). Ellington Field Joint Reserve Base, the only military installation within the Gulf Coast region, supported an estimated 2,300 jobs in 2019 and contributed about $286 million to the state’s GDP.
Exhibit 5
U.S. Military Impact on the Gulf Coast Region Estimated 2019
Region
Total Jobs Supported
Contribution to State GDP
Gulf Coast
2,323
$0.3 billion
State of Texas
633,892
$75.3 billion
Sources: Texas Comptroller of Public Accounts, Texas Military Preparedness Commission and REMI
The region’s employment rose by almost 21 percent from 2009 to 2019, outpacing state job growth. Employment in the Houston-The Woodlands-Sugarland MSA also increased more than 20 percent (Exhibit 6). More than 98 percent of the region’s total jobs are in the Houston-The Woodlands-Sugarland MSA.
Exhibit 6
Gulf Coast Region Employment Trends, 2019
Area
Number of Jobs (2019)
Actual Change (2009 to 2019)
Percent Change (2009 to 2019)
Houston-The Woodlands-Sugarland MSA
3,025,426
514,533
20.5%
Gulf Coast Region
3,084,739
517,998
20.9%
Texas
12,531,100
2,284,407
22.3%
United States
147,886,638
17,768,373
13.7%
Note: Figures include private- and public-sector employees with the exception of active-duty military personnel, railroad employees, religious institution employees and the self-employed.
Sources: JobsEQ and U.S. Bureau of Labor Statistics
Significant Regional Occupations
The Gulf Coast region’s most significant occupations are shown in Exhibits 7 and 8, first by location quotient and second by numeric growth during the last five years.
Exhibit 7
Top Occupations in the Gulf Coast Region by Location Quotient, 2014 to 2019
Occupation
Number Employed
Average Annual Wages
LQ
Unemployment Rate
Five-Year Employment Change
Extraction Workers
23,444
$47,600
4.87
5.6%
-8,225
Water Transportation Workers
4,775
$72,300
2.66
4.8%
-138
Plant and System Operators
14,077
$64,700
2.13
1.0%
-1,495
Supervisors of Construction and Extraction Workers
25,116
$76,100
1.79
3.4%
1,460
Air Transportation Workers
9,711
$111,100
1.65
0.6%
-127
Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
Exhibit 8
Top Occupations in the Gulf Coast Region by Numeric Growth, 2014 to 2019
Occupation
Number Employed
Average Annual Wages
LQ
Unemployment Rate
Five-Year Employment Change
Food and Beverage Serving Workers
172,191
$23,100
1.05
6.4%
25,174
Other Personal Care and Service Workers
79,010
$22,900
0.85
5.0%
18,124
Construction Trades Workers
160,545
$42,400
1.34
6.3%
16,057
Health Diagnosing and Treating Practitioners
102,161
$104,300
0.85
1.0%
13,840
Business Operations Specialists
96,304
$82,700
0.85
2.9%
12,390
Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
Education
A strong educational foundation provides a cornerstone for growth and competitiveness in the global economy, offering opportunities for workplace advancement and business expansion.
Wages by Educational Attainment
Post-secondary education delivers a good return on investments of time and tuition. In 2018, the Gulf Coast region’s workers with some college or associate degrees and with stable jobs — defined as those employed with the same firm throughout a calendar quarter — earned an average of $6,408 more annually than those with a high school degree, while those with at least a bachelor’s degree earned an average of $30,328 more (Exhibit 9).
Exhibit 9
Average Annual Earnings by Educational Attainment, Gulf Coast Region and Texas, 2018
Educational Attainment
Number Employed, Region
Percent of Region
Average Annual Earnings, Region
Number Employed, Texas
Percent of Texas
Average Annual Earnings, Texas
Less than High School
516,634
17.40%
$43,491
2,065,483
17.10%
$42,808
High School or Equivalent, No College
661,979
22.30%
$51,093
2,765,759
22.90%
$52,035
Some College or Associate Degree
796,592
26.80%
$57,501
3,245,675
26.90%
$60,428
Bachelor’s Degree or Advanced Degree
648,501
21.80%
$81,421
2,454,975
20.30%
$95,716
Educational Attainment Unavailable
347,982
11.70%
$22,443
1,544,282
12.80%
$22,087
Total
2,971,687
$54,377
12,076,174
$58,787
Sources: U.S. Census Bureau and JobsEQ
During the 2017-18 school year, 89.2 percent of the Gulf Coast region’s class of public high school senior students graduated, slightly below the state’s rate of 90 percent (Exhibit 10). While the region’s high school graduation rate has risen since the 2009-10 school year, the last few years have seen the rate slip below the state average.
Exhibit 10
Gulf Coast Region Public High School Graduation Rates,
2009-10 to 2017-18 School Year
Region
2010
2011
2012
2013
2014
2015
2016
2017
2018
Gulf Coast
83.9%
85.9%
87.1%
87.8%
88.2%
88.9%
88.5%
89.1%
89.2%
Texas
84.3%
85.9%
87.7%
88.0%
88.3%
89.0%
89.1%
89.7%
90.0%
Source: Texas Education Agency
Many high school graduates enroll in postsecondary programs, which offer greater job prospects and the possibility of higher wages. Residents of the Gulf Coast region enjoy a variety of options for higher educational achievement (Exhibit 11).
Exhibit 11 Gulf Coast Region Institutions of Higher Education
Universities
Houston Baptist University
Prairie View A&M University
Rice University
Sam Houston State University
South Texas College of Law Houston
Texas Southern University
University of Houston
University of Houston-Clear Lake
University of Houston-Downtown
University of St. Thomas
Health Science Schools
The University of Texas MD Anderson Cancer Center
The University of Texas Medical Branch at Galveston
Sam Houston State College of Osteopathic Medicine
University of Houston College of Medicine
Baylor College of Medicine
The University of Texas Health Science Center at Houston
Junior and Community Colleges
Alvin Community College
Brazosport College
College of the Mainland Community College District
Galveston College
Houston Community College - Central Campus
Houston Community College - Northeast Campus
Houston Community College - Northwest College
Houston Community College - Southwest College
Lee College
Lone Star College - Cy-Fair
Lone Star College - Kingwood
Lone Star College - Montgomery
Lone Star College - North Harris
Lone Star College - Tomball
Lone Star College - University Park
San Jacinto College - Central Campus
San Jacinto College - North Campus
San Jacinto College - South Campus
San Jacinto Community College
Texas Chiropractic College
Texas State Technical College-Fort Bend
Wharton County Junior College
Source: Texas Higher Education Coordinating Board
The region’s numerous community college districts provided technical and academic coursework for more than 196,000 students in the 2017-18 school year (Exhibit 12).
Exhibit 12
Gulf Coast Region Community College Overview, 2017-18 School Year
*The percentage of academic or technical graduates employed in the fourth quarter of the calendar year after graduation and/or enrolled in a Texas two- or four-year institution in the following fall after graduation, as specified.
Source: Texas Higher Education Coordinating Board
Community colleges in the Gulf Coast region awarded more than 12,500 certificates and associate degrees in general studies and liberal arts in the 2017-18 school year; the next most-common awards were for health professions, business administration and marketing (Exhibit 13).
Exhibit 13
Top 10 Certificates and Degree Awards in the Gulf Coast Region’s Community Colleges,
2017-18 School Year
Certificates and Degrees
Number Awarded
Liberal Arts and Sciences, General Studies and Humanities
12,574
Health Professions and Related Clinical Sciences
7,797
Business, Management, Marketing and Related Support Services
3,974
Personal and Culinary Services
2,599
Skilled Precision Production of Leather Metal or Wood Products
2,246
Mechanic and Repair Technologies/Technicians
2,220
Engineering Technologies/Technicians
2,185
Science Technologies/Technicians
1,385
Computer and Information Sciences and Support Services
777
Security and Protective Services
739
Source: JobsEQ
Regional Economy
The relative health of the Gulf Coast region’s economy can be measured by its sales tax revenue and comparison to other states on education, population, per capita income and unemployment rate. Together, these data are good indicators of the region’s economic dynamics and competitiveness.
Sales Tax Revenue
Sales taxes are inherently volatile in the short term but when reviewed over time can provide a useful indication of the state’s economic condition.
Receipts subject to state sales tax directly attributed to the Gulf Coast region trended generally upward in the past decade, with a return to strong growth immediately following the 2009 recession (Exhibit 14). For 2019, taxable sales directly attributable to businesses in the region exceeded $124 billion, contributing about 22 percent to the state’s overall taxable sales. The Houston-Sugarland-Baytown MSA directly accounted for $122 billion of this total.
Exhibit 14
Gulf Coast Region, Taxable Sales, 2007-2019
Year
Revenue Gulf Coast Region
2007
77.52 billion dollars
2008
83.83 billion dollars
2009
74.36 billion dollars
2010
75.39 billion dollars
2011
86.74 billion dollars
2012
97.02 billion dollars
2013
101.66 billion dollars
2014
111.64 billion dollars
2015
109.40 billion dollars
2016
102.31 billion dollars
2017
109.55 billion dollars
2018
121.14 billion dollars
2019
123.70 billion dollars
Note: Numbers shown are for reported revenue subject to sales tax and directly attributed to the region.
Source: Texas Comptroller of Public Accounts
In 1997, the U.S., Canada and Mexico jointly released the North American Industry Classification System (NAICS), which classifies all business enterprises for the purpose of collecting, analyzing and publishing economic statistics. A review of two-digit NAICS codes allows for a broad analysis of industry sectors.
In 2019, the region’s retail trade sector contributed most to taxable sales, accounting for about 36 percent of the regional total. Three other industries of note were the food services and accommodation, manufacturing and the mining sectors, which together contributed more than 31 percent of the region’s taxable sales.
Gulf Coast Region vs. the U.S.
Exhibit 15 illustrates how the region compares among other states and the nation on a number of demographic and economic measures. If the region were a state, it would be the nation’s 15th most-populous (similar in population to Arizona). As a state, it would be the 42nd largest in terms of land area (just ahead of Maryland). It would also have the 16th highest per capita income.
Exhibit 15
Gulf Coast Region Compared to the U.S.
Measure
Gulf Coast Region
Rank if Region
were a State
Texas
State Rank
U.S.
Square Miles
13,926
42
268,597
2
3,531,905
Population, 2019
7,238,804
15
28,995,881
2
328,239,523
Population with at Least a High School Diploma, 2018
83.2%
50
83.2%
49
87.7%
Population with Bachelor’s Degree or Higher, 2018
32.1%
19
29.3%
28
31.5%
Population Under 18 Years, 2018
26.4%
2
25.8%
2
22.4%
Population 65 Years and Above, 2018
11.3%
50
12.6%
48
16.0%
Population Percent Change, 2010 to 2019
18.5%
1
15.3%
2
6.3%
Per Capita Income, 2018
$55,602
16
$50,355
26
$54,446
Unemployment Rate, 2019
3.8%
34
3.5%
27
3.7%
Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics and U.S. Bureau of Economic Analysis.
Gulf Coast Regional Summary
The Gulf Coast region is a microcosm of the state with a vibrant and diverse economy. Harris County, with Houston at its center, is the region’s economic hub.
The region and its 13 counties have many unique economic conditions and challenges. The region contains about 25 percent of the state’s population, up from 19 percent since 2010, and is the state’s most diverse region. While the region’s median age is on par with that of the state, it has the second largest percentage of households with incomes above $125,000. It has many options for higher education, with 10 universities, four health science schools and 18 community college campuses.
The local economy generates about 22 percent of the state’s taxable sales. Industry concentration in the region primarily revolves around the production of chemical and petroleum products, as well as certain transportation sectors, all contributing positively to a unique local economy.
