The population of the Lone Star State reached 23,507,783 in July 2006, according to the latest estimates from the U.S. Census Bureau. Texas gained 579,275 people, more than any other state, and ranked as the fifth fastest-growing state in the nation between July 1, 2005 and July 1, 2006. The 2000 Census indicates that 82.5 percent of Texas' population lives in metropolitan areas. The urbanizing of Texas is underscored by recent growth trends - the state’s metropolitan areas accounted for over 91 percent of Texas population growth between 1990 and 2000. Growth has occurred primarily in the large metropolitan areas of Austin, Dallas, Houston, and San Antonio. Austin added 403,536 people during the 1990s, increasing its population by nearly 50 percent. Other areas with significant growth are metros located along the Mexico border, such as McAllen, Brownsville, and Laredo. One of the fastest growing regions in the state, the Lower Rio Grande Valley, houses two adjacent metros - McAllen and Brownsville. Together they added 261,025 people between 1990 and 2000 - about the same as the increase for the entire San Antonio metro area during the same period. Houston, San Antonio, Dallas, Austin, Fort Worth and El Paso are all on the Census Bureau's latest nation’s top 25 largest cities list.

According to the most recent population projections from the Texas State Data Center, Texas' population was 23,047,143 in January 2006 and is expected to reach 35.76 million by 2040. This is based on a statewide annual rate of growth of approximately 1.5 percent; slower than 1990-2000 but still substantial growth given the 2000 population base of 20.85 million. Hispanics will account for most of this growth and are expected to outnumber Anglos in Texas by 2020. These projections are based on the State Data Center's "0.5" migration scenario, which is the one indicated as "most appropriate...for use in long-term planning." In 2005, Texas became the fourth "majority-minority" state, with a minority population comprising 50.2% of its total population, according to U.S. Census Bureau population estimates.

In 2005 and looking forward to 2006, Texas real estate is in good shape. Interest rates remain low, helping to drive residential housing construction and purchases. The Texas housing market continues to show strong growth according to Texas residential housing permits data. An estimated 269,000 homes were sold by Texas Multiple Listing Services in 2005 — 34 percent more than three years earlier. Overall, Texas’ housing market continues to offer highly affordable homes without excessive price inflation. The Texas Real Estate Market Reports from the Real Estate Center at Texas A&M University provide detailed information about the 25 Texas Metropolitan Statistical Areas. Commercial real estate markets also remain strong. More Texas cities are expected to embrace developments that use different combinations of retail, residential, office and even hotel space. At a time of skyrocketing fuel prices, this will save Texans transportation time and money.

The Texas gross state product (GSP) is forecast by the Comptroller of Public Accounts to reach $924.55 billion (in current dollars) in 2005. If Texas were a nation, its economy would rank as the eighth largest in the world, according to the Comptroller's Fall 2004 Texas Economic Update. According to 2005 Comptroller calculations, if Texas were a nation, its economy would rank as the tenth largest in the world. Since the 1986 recession, the Texas economy has been steadily diversifying. The service sector's share of GSP increased from 14.7 percent in 1986 to 20.5 percent in 2001, while manufacturing fell slightly from 14.1 percent of the economy in 1986 to 13.1 percent in 2001. Mining's share of Texas GSP (i.e., primarily oil and gas extraction) has been as high as 19.6 percent in 1981. Mining declined from 8.8 percent in 1986 to 6.2 percent in 2001.