What Is the Median Income in Houston, Texas?
Discover Houston's median income, what it signifies, and the economic factors shaping financial life in the city.
Median income is a fundamental statistical measure providing insight into a population’s economic well-being. It represents the middle point of income distribution, where half of households or individuals earn more and half earn less. Understanding this figure is crucial for assessing economic health and living standards. This article focuses on Houston, Texas’s median income, offering a clear picture of its financial landscape.
Current Median Income Data for Houston
The most recent data from the U.S. Census Bureau’s American Community Survey (ACS) indicates that the median household income in Houston, Texas, was $62,894 in 2023. This figure represents the income for all households, providing a snapshot of the economic standard for a typical household. When compared to the national median household income, which stood at $78,538 in 2023, Houston’s median income is approximately 80.08% of the U.S. average.
What Median Income Means
Median income is a statistical measure that identifies the exact middle point of an income distribution. Unlike the “mean” or average income, which can be skewed by a few extremely high earners, the median provides a more accurate representation of typical earnings. Half of households or individuals earn above the median, and half earn below it. This makes the median a robust indicator for understanding the financial reality for the majority of a population.
Income included in median calculations generally encompasses various sources. These typically include wages and salaries from employment, self-employment income, retirement income such as Social Security benefits and pensions, and other regular income streams like interest, dividends, and public assistance.
It is important to distinguish between individual median income and household median income. Individual median income refers to the earnings of a single person. Household median income considers the combined income of all individuals aged 15 and over living in a single housing unit, whether related or not. The Houston figure cited earlier specifically refers to household income, reflecting the collective financial capacity of residential units.
Key Demographic and Economic Factors in Houston
Houston’s economy is diversified, significantly influencing its median household income. Major industries contributing to the city’s economic landscape include energy, particularly oil and gas, healthcare, aerospace, manufacturing, and shipping, facilitated by the Port of Houston. These varied industries provide a range of employment opportunities, from high-paying professional roles to more accessible entry-level positions, which collectively shape the city’s income distribution.
Demographic characteristics also play a role in the city’s income profile. Houston has a relatively young population, with a median age of 34.3 years in 2023. Households led by individuals in their prime working ages, typically between 45 and 64 years, tend to report the highest median household incomes. The composition of households, including the number of working adults and dependents, can affect the overall household income.
The cost of living provides additional context for Houston’s median income. While specific figures vary, the cost of living in Houston is generally lower than the national average, particularly regarding housing. In 2023, the median property value in Houston was $253,400. This affordability can mean that a given income level, such as the median household income, may afford a higher standard of living or greater purchasing power in Houston compared to other major U.S. cities with higher living expenses.