The U.S. Census Bureau released its 2025 income and housing report on Thursday, revealing that Texas families saw a modest increase in median household income, reaching $82,625. That figure is a small gain over the previous year and still trails the national median of $84,780, but it reflects steady progress after the pandemic slowdown.

Income gains vary by region and ethnicity

Growth was strongest in the Houston and San Antonio areas, while incomes slipped in the McAllen and Dallas‑Fort Worth regions. Hispanic households posted the biggest percentage gains, moving their median income to $70,348, and Black households rose to $64,664. Asian households, however, saw a 2.3% decline, settling at $122,370, and white households remain the highest earners at $92,479.

Housing costs continue to squeeze renters

More than half of Texas’s 4.3 million renters are “cost‑burdened,” meaning roughly three‑quarters of every $10 earned go toward rent. This leaves less money for groceries, health care, transportation, child care and savings. Despite the pressure, monthly rents were largely flat across the state in 2025.

Homeowners feel mixed effects

Homeowners with mortgages saw a slight rise in cost‑burdened households, climbing to about 32% in 2025. At the same time, the median property‑tax bill for homeowners who have paid off their mortgages fell about 4.2% from 2024, offering some relief. For those still carrying a mortgage, the tax bill was essentially unchanged. Texas lawmakers have devoted billions of dollars since the start of the decade to rein in property taxes, a policy that continues to benefit homeowners.

Poverty trends and inequality

The overall poverty rate in Texas declined last year, and fewer children lived in poverty. However, the number of older Texans and families with children in poverty ticked upward, underscoring the need for targeted assistance. Income inequality remains high in the Lone Star State, though it is lower than the national average.

Energy adoption and other insights

The Census added questions on solar‑panel and electric‑vehicle ownership. Households in Travis County – home to Tesla’s Gigafactory – were about twice as likely to own an electric vehicle as the state average. Rural households reported over 80,000 solar installations, but Texas still lags the national solar‑panel penetration rate of 5.2%.

What this means for Texans

While income growth is modest and housing costs remain a challenge for many renters, the state’s ongoing property‑tax reforms and flat rent levels provide a measure of stability. Continued focus on affordable housing, targeted poverty relief, and support for energy‑independent initiatives will be essential as Texas moves forward.

Original reporting: San Antonio Report — read the source article.