Around 90% of Texas’ population is located in just 26 metro areas across the state. According to some projections, Texas could surpass California as the nation’s most populous state by 2045.
So what are we doing to prepare?
Recently, a group of researchers and policy analysts put together something called the “Texas Metropolitan Blueprint: A Five-Year Policy Agenda for Action.”
Two of the contributors to this research are Steven Pedigo, director of the LBJ Urban Lab at UT Austin, and Cullum Clark, an economist at the George W. Bush Institute.
They joined Texas Standard to discuss their findings. Listen to the interview above or read the transcript below.
This transcript has been edited lightly for clarity:
Texas Standard: Cullum, let’s start with you. Your report highlights technology, clean energy, and advanced manufacturing as key industries for Texas’ future. How should the state prepare? Are we talking about building more power plants? What role does the state play in infrastructure?
Cullum Clark: There’s both a public and private component. The state funds most of the water infrastructure, which we highlight in the report as an area needing significant attention.
When it comes to green power, it’s about incentive structures and regulations governing the power grid and renewable energy investments.
The report also notes that Texas’ skills gap is widening. Steven, can you explain why that’s happening and why it’s so critical?
Steven Pedigo: Absolutely. The key driver of economic competitiveness is people. Talent determines where investment flows.
Just recently, the governor emphasized the need for workforce investment in his State of the State address. Texas must do more to get people into training programs, career and technical education (CTE), and rethink how economic and workforce development work together.
One of our report’s recommendations is for policymakers to better integrate these areas.
You specifically highlight House Bill 8 in this study — a bill from the last legislative session aimed at expanding the role of junior and community colleges. Cullum, what do you see as the next steps?
Cullum Clark: HB 8 was a visionary reform that reshaped how Texas funds community colleges, making the system more outcomes-driven. It put Texas ahead of other states in this area. The challenge now is implementation — defining success metrics aligned with economic growth and ensuring the state delivers promised funding.
AI has been making headlines lately, often framed as a job threat. But a recent Texas Lyceum event in Austin discussed how the state could harness AI for economic benefit.
Steven, what does your report say about AI and Texas?
We address AI in multiple ways.
First, workforce development. Institutions like Houston Community College are launching AI-related certificate and degree programs.
Second, infrastructure. AI requires massive data centers, which place additional strain on our already challenged power grid.
Third, public sector adoption. We encourage state and city agencies to leverage AI for efficiency while also addressing privacy concerns.
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Cullum, your report also calls for increasing homeownership. Why is that so important, and how do we achieve it in already dense cities?
Cullum Clark: Homeownership has long been a priority in the U.S., but rates have declined in Texas metro areas because we aren’t building enough homes to meet demand. This shortage drives up prices. While Austin has made progress by building more apartments, home prices remain high relative to incomes.
Texas has plenty of land for expansion, but even within our cities, there’s room to grow. A national study ranked Dallas as the U.S. city with the most available land for development, with other Texas cities ranking high as well.
Policies like allowing townhomes and apartments in commercial areas — like strip malls — could help. Houston has led the way by reforming minimum lot sizes, allowing smaller, more affordable homes. We recommend similar reforms statewide.
Steven Pedigo: I want to add to that. Texas has historically had a cost advantage, but recent polls show affordability is a growing concern — about 7 in 10 Texans now see it as a major issue.
Property tax cuts get a lot of attention, but as we argue in the report, there’s much more to be done. We need to streamline permitting, rethink zoning, and consider new approaches to housing development.
Addressing affordability requires a comprehensive strategy, not just tax cuts.
