In this article, we list and discuss the Top 10 Fastest Growing Cities in Texas.If you would like to skip our detailed discussion of the topic, you can go directly to the Top 4 Fastest Growing Cities in Texas.
Texas is one of the fastest-growing states in the United States, with a population growth of 4.7%. For perspective, out of the five fastest-growing cities in the US, four cities are from the state of Texas. Much of that growth comes from people migrating from the other states. One of the primary reasons why people are moving to Texas in such large numbers is that Texas has a good job market, friendly business environment and a favorable tax system.
According to the Texas Workforce Commission (TWC), the Texas labor market is experiencing a record-breaking growth. From January 2023 to January 2024, Texas’ total nonfarm employment grew by 263,900 jobs, showing an annual growth rate of 1.9%. Moreover, the seasonally adjusted civilian labor force in Texas grew by 12,800 people in a month to reach 15,143,400 in January.
On the other hand, the state of California is going through a rough patch with its job market. According to the US Bureau of Labor Statistics, from January to February, 13,100 more Californians lost their employment and the total number rose to 1,027,000. When one state has a prosperous economy while the other states struggle, people tend to migrate to where the grass looks greener, and this is exactly what happened between California and Texas. A report from the US Census Bureau found that 107,546 people migrated from California to Texas in 2021.
While employment is one reason for the rapid population growth in Texas cities, its tax system is another significant driver of the state’s growth. Texas is one of the very few states with no income and corporate tax. Furthermore, it has a sales tax rate of 6.25%, which is fairly reasonable compared to other states. However, its property tax rate of 1.68% is what concerns many property owners in Texas. Regardless, Texas is a distinguished destination for those who prefer low taxes and a good job market.
Moreover, many Fortune 500 companies like McKesson Corp (NYSE:MCK), Exxon Mobil Corp (NYSE: XOM), and AT&T Inc (NYSE:T) are headquartered in Texas, perhaps to benefit from the zero corporate tax and contribute to the job market.
McKesson Corp (NYSE:MCK), the largest pharmaceutical distributor in the US, moved to Irving, Texas, from San Francisco, California, in 2019. McKesson Corp (NYSE:MCK) brought nearly 1,000 jobs to Irving and generated approximately $300 million to $400 million in annual pre-tax gross savings that were realized by the end of fiscal year 2021.
Meanwhile, Exxon Mobil Corp (NYSE:XOM), an American leading oil and gas corporation, is headquartered in the Houston suburb of Spring, Texas. Last year, in 2023, the company announced a strategic $2 billion investment for opening two new chemical production facilities in Baytown, Texas. According to Exxon Mobil Corp (NYSE:XOM), the project will contribute more than 3,500 construction jobs and when the facilities are fully operational, they will open 200 permanent jobs.
On the other hand, AT&T Inc (NYSE:T), a key player in the American telecommunication industry, is headquartered in Dallas, Texas. From 2019 to 2021, AT&T Inc (NYSE:T) has invested more than $7 billion in its wireless and wireline networks. While it has created ample jobs across the country, the company is on an aggressive cost-cutting campaign and its workforce has shrunk by over 120,000 since 2016.
By 2100, Texas is on-track to be one of the most populated states in the US. Similar to these three companies, other companies operating in Texas are also helping strengthen the job market of the state, which in turn, is helping contribute to the growing population in the state. Below, we’ve listed the top 10 fastest-growing cities in Texas.
Top 10 Fastest Growing Cities in Texas.
Our Methodology
In this article, we have listed the top 10 fastest-growing cities in Texas. We have ranked the cities using data collected by the US Census Bureau which provided us a list of annual population estimates for over 800 US cities. We used data obtained for 2020-2022, and shortlisted Texan cities from the list. We then calculated the percentage change in population from 2020 to 2022 for all the cities in Texas and selected the top 10 cities that experienced the highest population growth in these years. The cities in our list are ranked based on the ascending order of their percentage growth in population between 2020 and 2022.
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Top 10 Fastest Growing Cities in Texas
10. Rockwall, Texas
Percentage Change in Population (2020-2022): 7.80%
Rockwall is one of the fastest-growing cities in the Lone Star state. Between 2020 and 2022, within a span of 2 years, the city’s population surged by 7.80%. According to the U.S. Census Bureau’s 2023 estimates, the city’s current population is 51,461. Rockwall boasts scenic beauty, award-winning schools, and a thriving community. While residents cherish outdoor spots like Robin Bledsoe Park and Lakewood Park, the city’s proximity to Austin adds to its allure. Notable restaurants include Bella Sera of Leander and Mouton’s Southern Bistro, as Rockwall continues to grow, it remains a vibrant and attractive place.
9. Temple, Texas
Percentage Change in Population (2020-2022): 8.24%
Temple, a city located in Bell County Texas, has experienced remarkable growth in recent years as well. Between 2020 and 2022, its population surged by 8.24%, and the current population of the city stands at over 89,000. The surge in the city’s population is also reflected in its housing landscape. Furthermore, according to Census data, owner-occupied housing units constitute 52.8% of the total housing units with the median value per unit being $191,300. For homeowners with a mortgage, the median monthly cost is $1,495, while those without a mortgage pay $595. Additionally, the median gross rent for renters is $1088 per month. These figures highlight the city’s evolving housing market, which plays a crucial role in shaping Temple’s future. The Temple Economic Development Corporation also reported that the city government aims to continue to “reinvest added tax revenue into revitalization projects that boost the city’s livability.”
8. Frisco, Texas
Percentage Change in Population (2020-2022): 8.30%
Frisco, a vibrant city in Texas, has witnessed remarkable growth in recent years, reflecting the city’s allure as a dynamic and thriving community. Among the diverse races contributing to the city’s increasing population, white residents form the majority — comprising 53.6% of the population. Meanwhile, Asians make up 25.5% of the population of Frisco, and black or African American residents make up 9.2% of it. Furthermore, more than 6,000 veterans reside in Frisco, contributing to the city’s rich tapestry of experiences. Alongside this, 25.3% of the city’s population consists of foreign-born individuals, which adds to the cultural diversity and global perspectives to the city’s community.
7. Conroe, Texas
Percentage Change in Population (2020-2022): 11.13%
Conroe, nestled in Montgomery County and located 40 miles north of Houston, has an impressive count of around 101,405 people living in the city. Approximately 35,433 households dot the landscape, each comprising around 2.56 persons, demonstrating how families play a significant role in the surging number of residents in the city. Furthermore, the population aged less than 5 makes up 7.2% of the city's population, with 24.3% being adults and 14.2% being senior citizens. The remaining almost half of the population is composed of female residents. Conroe is best known for its lake and the historic downtown Conroe area. The city also has lots of greenery and is one of the best places to live in the state.
6. Burleson, Texas
Percentage Change in Population (2020-2022): 11.23%
Ranked 6th, Burleson is another Texan city that is growing fast. With a population of over 53,000 as of July 1, 2022, estimated by the Census, Burleson has a modest size, but a healthy economy. The city’s economy reflects a mix of services, healthcare, and retail sectors, aligning with its growing population. Around 69.6% of the population aged 16 years and older are part of the civilian labor force. Notably, the city’s total retail sales in 2017 reached over 1 billion dollars, demonstrating its economic vibrancy. However, In terms of family and living arrangements of the residents, there are over 16,000 households, with an average of 2.88 persons per household.
5. New Braunfels, Texas
Percentage Change in Population (2020-2022): 14.28%
New Braunfels is the fifth fastest-growing city in the state, with a 14.28% population growth between 2020 and 2022. It is a thriving city with approximately 104,707 residents as of July 1, 2022 estimates, and some noteworthy statistics reveal that not only is the city's population growing, but it also excels in education. According to the Census Bureau US, a whopping 93.6% of the city’s population is composed of high school graduates and 28.8% of them have bachelor's or higher degrees at the age of 25 and older. If we look at the health metrics, New Braunfels demonstrates a 5.1% disability rate among those under 65, though 12.7% of the locals still lack health insurance.