The 2025 Woodlands Economy Report

The Woodlands, Texas continues to thrive as a premier location for residential and commercial activity. With its strategic planning, high-quality amenities, and robust commercial developments, The Woodlands has solidified its reputation as an ideal environment for businesses seeking growth and innovation.

A Planned Community Built for Success

As a master-planned community established 50 years ago by George Mitchell, The Woodlands combines residential, commercial, and recreational spaces in a way that encourages seamless connectivity and sustainable growth. This legacy remains strong under the influence of the Howard Hughes Corporation, which ensures that new developments align with the original master plan.

One key feature of The Woodlands is its commitment to creating a "live, work, play" environment. The Woodlands township is made up of smaller sectors called “villages.” Each village has its own retail centers, essential services, and walkable spaces, making the community as a whole an attractive destination for both families and businesses. Southside Bank Market President Amos McDonald says, “The individuality that exists within each village is complemented by the unity of the entire community.”

The Commercial Sector at the Forefront

The Woodlands’ commercial real estate sector is thriving, with marquee developments like Hughes Landing and the two Woodlands Towers serving as anchors for economic activity. The community is home to several Fortune 500 companies, including Huntsman Chemical, Occidental Petroleum, and Chevron Phillips Chemical, all of which benefit from the area's high-quality infrastructure and amenities.

In addition to corporate headquarters, the life sciences sector is experiencing a resurgence. According to Gil Staley, CEO of The Woodlands Area Economic Development Partnership, the community has successfully recruited multiple life science companies from California, drawn by lower operational costs and favorable business conditions. The Research Forest area, originally designed for technology and life science companies, is once again buzzing with activity, showcasing The Woodlands' ability to adapt to evolving market demands.

A Healthcare Hub

Healthcare represents nearly one-third of all jobs in The Woodlands, making it a cornerstone of the local economy. The area boasts a "mini medical center" featuring institutions like Texas Children's Hospital, Methodist Hospital, and MD Anderson Cancer Center. This healthcare ecosystem not only provides world-class services to residents but also attracts professionals and businesses in related fields.

Challenges and Opportunities

Despite its many strengths, The Woodlands faces challenges typical of high-growth areas, such as increasing traffic congestion and the need for workforce availability. However, local leaders and stakeholders are actively addressing these issues through infrastructure improvements and transportation initiatives.

Looking ahead, the focus will shift to maximizing commercial opportunities, as residential land becomes scarce. Projects like the Ritz-Carlton development and revitalization efforts in older areas such as Grogan’s Mill underscore the community’s dedication to maintaining its appeal and economic vitality.

Why Choose The Woodlands?

For businesses considering relocation or expansion, The Woodlands offers an unparalleled quality of life. With a highly educated workforce—nearly 69% of working-age residents hold at least a bachelor’s degree—companies have access to top talent. The community’s amenities, ranging from shopping and dining to outdoor recreation, further enhance its appeal.

As Gil Staley put it, “We have the best quality of life you can offer a company and its employees and families.” The Woodlands’ unique combination of thoughtful planning, economic vibrancy, and commitment to excellence makes it a standout destination for corporate growth.

Learn more about Southside Bank’s involvement in The Woodlands community at southside.com/woodlands.