Houston Daily

Many households in the Houston area are facing increased financial insecurity, according to a new report released by the University of Houston’s Hobby School of Public Affairs. The findings come from the Center for Public Policy’s Survey on Public Attitudes and Community Engagement City Panel (SPACE City Panel) and provide a detailed look at local economic challenges.

The survey results indicate that over 70% of respondents reported their household has some form of debt. Credit cards were cited as the most common type (52.1%), followed by car loans (36.1%) and mortgages or other debts (29.4%). Debt types varied by income level, with lower-income households relying more heavily on credit cards, often using them for essential expenses such as food or monthly bills.

Pablo Pinto, director of the Center for Public Policy and professor at the Hobby School, emphasized the importance of examining household-level data: “We want to understand what’s happening at the household level, which is something publicly available data doesn’t necessarily reflect.”

Fewer than one-third (29.5%) of respondents said they expect their household income to keep pace with inflation over the next year. Among those who do not expect their income to keep up, 38.1% are considering moving out of Houston and 37.9% are open to that possibility.

The study also found that nearly 86% identified high living costs as a major economic challenge. As a result, 46% have reduced spending on essentials like food and energy, while more than half have cut back on discretionary items such as vacations or recreational activities.

Economic outlooks among residents are generally pessimistic; most rated local conditions as “fair,” “poor,” or “very poor.” Notably, 30% of city residents described their community’s economic situation as “poor” or “very poor,” compared to only 17.6% in surrounding areas.

Debt patterns differed across racial and ethnic groups: Black respondents reported student loans as their largest debt; white non-Hispanic respondents had higher balances in car loans and credit cards; Asian respondents reported high levels of both credit card and student loan debt; Hispanic respondents reported significant credit card and car loan debt.

Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, noted differences between income groups regarding credit card use: “Lower-income households usually use credit cards more for emergency things like buying food or covering monthly expenses, so their debt builds up, and they have more interest to pay. This is opposed to higher incomes where you see that they usually have more capacity in their credit cards, but they pay it month by month, so they don’t have to pay for the interest.”

The report also highlights disparities in savings: white and Asian households are almost twice as likely as Black and Hispanic households to have savings or investment portfolios. Perez Arguelles commented on these gaps: “Those that have savings have a more positive outlook on their financial future… Having that savings capacity definitely gives households some confidence about the future.”

The full report can be accessed through the Hobby School website.