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Texas Triangle - The Economic Engine of the Southwest

Jerry Newman's picture
Texas Triangle - The Economic Engine of the Southwest

The Dallas-Fort Worth(DFW), Houston and San Antonio, with Austin inside the Dallas-San Antonio line all the way up IH-35 make up what we call the Texas Triangle. These four metro areas are the economic heart of Texas, holding 68 percent of its jobs and earning 73 percent of its income.

No wonder the housing markets are very strong in all these metros. The majority of the Texas population lives in these 4 metropolitan areas.

These four Texas Triangle cities come together to form a great economic engine that serves Texas, and much of the southwestern United States. Divided by history and geography, these four cities are best understood as one economic entity. Although miles apart, they remain physically close enough that mutual competition has forced them to seek out different and complementary economic roles. Yes, This engine has four cylinders that work in close coordination to power our Texas economy.

Looking at the Metropolitan Statistical Area(MSA) for population from 2012 for metro areas, only New York, Los Angeles, and Chicago ranked ahead of the Dallas-Fort Worth area, which had 6,702,801 million at that time, and coming at 5th was Houston at 6,175,466, and San Antonio at 25th with 2,234,4894, while Austin was 35th with 1,835,110. When you consider the Combined Statistical Area(CSA) for any MSA which take into account adjacent metropolitan or micropolitan areas, the total Texas Triangle population was 21,768,793 three years ago.

San Antonio’s population ranks with Portland or Orland, while Austin is similar to Nashville or Indianapolis. Neither San Antonio or Austin is part of a CSA, but their rankings as metro areas place them in impressive company. The combined population of the Texas Triangle metro areas puts them in the same class as New York, Los Angeles, and Chicago. There is a very distinct and different economic role played by each metro area that provides goods and services. Simple proximity drives a high degree of economic interaction among the Texas cities. Economists have used a “gravity model” to measure the likely interaction among different places. The strongest interaction in the Texas Triangle is between San Antonio and Austin at 137.2, and the weakest is between DFW and San Antonio at 37.5. Houston and DFW is at 100.

For the full story on the Texas Triangle and how it drives the economic engine of the Southwestern United States, see April 2015 issue of Tierra Grande, Volume 22, number 2. Since most of the state is still in a strong seller’s market, now is a great time to find out How Much Your Home is Worth. Call Jerry Today at 210.789-4216 or a personal marketing consultation on what if would take to get your home sold. If you’re planning to relocate to Texas, and you plan to purchase an affordable home that gives you more square feet for the dollar, search for Homes in San Antonio on my website, and let me be your guide and representative for your next purchase.


Yes, this is the hottest market I have seen since my early years in the business. Texas is attracting more and more folks with job opportuities.

Having just visited relatives in Houston, I can attest to the huge growth in the area! New industry is booming and real estate is appreciating. Nice to hear!

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