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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 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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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.
