Houston Surges to No. 2 in U.S. Retail Construction Boom

Houston is cementing its place as one of the nation’s hottest retail development hubs. A fresh report reveals that the city currently has nearly 3.9 million square feet of retail space under construction—equivalent to 21 Walmart supercenters—making it the second most active U.S. market for new retail projects in 2025.

The findings, released by commercial real estate services firm Lee & Associates, highlight the scale of Houston’s building spree. With the average Walmart supercenter spanning about 182,000 square feet, Houston’s ongoing retail projects collectively amount to more than enough floor space to line up big-box stores across multiple city blocks.

Texas Dominates the Rankings

‍Dallas-Fort Worth (DFW) claims the top spot in the country, with an impressive 7.15 million square feet of retail space currently under construction. That figure accounts for 15 percent of all retail space being built across the more than 60 U.S. markets tracked by Lee & Associates. The Austin area ranks third nationally, with more than 3.4 million square feet underway.

The combined retail growth in these three major Texas metros underscores the state’s surging economic and demographic momentum.

Population Growth Fuels Development

‍Much of the expansion is tied directly to Texas’ rapid population increases. According to newly released U.S. Census Bureau data, Houston was the second-fastest-growing metro area in the country from 2023 to 2024. Dallas-Fort Worth followed closely as the third-fastest-growing metro, while Austin ranked 13th.

Developers say this influx of new residents is creating unprecedented demand for shopping, dining, and entertainment options—particularly in suburban growth corridors. “We’re seeing retailers and developers race to secure prime spots in high-growth neighborhoods,” said one Houston-area retail broker familiar with the report. “With so many new households coming in, the market is far from saturated.”

Diverse Retail Projects in the Pipeline

‍The retail construction wave in Houston isn’t limited to massive big-box stores. Mixed-use developments, lifestyle centers, neighborhood shopping plazas, and experiential retail hubs are all part of the mix. Many of these projects are integrating dining, green space, and entertainment venues to create destinations beyond traditional shopping.

In the Houston suburbs, large master-planned communities are driving new commercial developments. For example, new town centers in areas like Katy, Cypress, and The Woodlands are blending grocery stores, gyms, medical clinics, and family-friendly gathering spaces, reflecting changing consumer habits.

An Economic Signal

‍Industry analysts note that the scale of retail construction across Texas could serve as an economic indicator, suggesting long-term confidence in the state’s growth trajectory. “When you see this level of retail investment, it’s a sign that developers and retailers believe consumer spending power will remain strong,” said a Lee & Associates representative.

With its rapid growth, diverse project mix, and strong economic fundamentals, Houston appears well-positioned to remain a retail construction powerhouse well into the latter half of the decade.

Originally reported by John Egan in Innovation Map.