Texas' smaller metropolitan areas will likely be the source for one of every six net new jobs over the long term, and are an important contributor to overall economic growth. These 20 metropolitan statistical areas (MSAs) range in population size from less than 100,000 to almost 850,000 residents, serving as centers for business activity for the surrounding smaller communities and rural areas.
Texas' largest metropolitan areas are set for relatively healthy growth over a long-term horizon. Business cycles will happen, but when we look out through 2040, the state's major population centers are likely to continue to compare well with most parts of the country in terms of economic expansion. The Austin and Dallas areas should lead the way, with Houston, San Antonio, and Fort Worth also doing quite well. For reference, our most recent long-term forecast for the state economy indicates that Texas output (real gross product) will likely expand at a 3.35% annual pace through 2040, while total wage and salary employment grows at a 1.64% yearly pace.