World Cup scouting report: Houston hosts as both energy capital and Space City

CoStar News examined each FIFA World Cup host city and what the tournament June 11-July 19 could mean for local infrastructure, real estate, tourism and economic development long before the first soccer match is played. Find links to all the markets here.

The FIFA World Cup is coming to 16 North American cities, including Houston, which will be hosting the global soccer extravaganza for the first time.

Southeast Texas’ sprawling melting pot was founded in 1836 and is known for its international appeal and diverse economy, including major healthcare, aerospace and energy employers.

Houston’s NRG Stadium will host seven total World Cup matches — five group-stage matches and two knockout round matches, including one of only two games in the tournament that will be played on July 4, the nation's 250th birthday.

Officials from the city’s Host Committee said via email that they expect a $1.5 billion economic impact from the event — the equivalent of hosting seven Super Bowls — through visitor spending, hotel room stays, tax revenue and event operating expenses.

“Hosting the FIFA World Cup 2026 is a generational opportunity for Houston, both economically and culturally,” officials said in an emailed statement. “Beyond the immediate boost, it elevates Houston’s global profile, helping attract future tourism, business investment and major events long after the tournament ends.”

Here is CoStar News’ scouting report:

Houston was founded in 1836 by brothers Augustus C. and John K. Allen shortly after Texas won independence from Mexico in the Battle of San Jacinto. The city was named for General Sam Houston, the hero of the war, who served as the first president of the Republic of Texas. The city of Houston served as the capital of the Republic of Texas from 1837 to 1839. Texas joined the United States in 1845, becoming the 28th state.

Houston’s population was more than 2.39 million as of the latest Census data, making it the fourth-largest city in the U.S. behind only New York City, Los Angeles and Chicago. But the greater metropolitan area comprises over 7.9 million people, the fifth largest in the country, per the latest Census data from July 1, 2025.

At 8,838 square miles, the 10-county Houston metropolitan area is larger than four states: New Jersey, Connecticut, Delaware and Rhode Island.

Based on the number of buildings at least 150 meters tall, the Skyscraper Center’s website lists Houston as the fourth-tallest city in the U.S. and the 47th tallest across the globe.

Only about 10 feet separate the two tallest buildings. The tallest, the 75-story JPMorgan Chase Tower in downtown Houston, was built in 1982 and stands at 1,002 feet tall. Just below it, the 992-foot-tall 1000 Louisiana was completed just a year later in 1983.

The Greater Houston Partnership notes that, as of July, 26 Fortune 500 companies are headquartered in Houston, the third most of any major U.S. market behind only New York City and Chicago. Houston has long been known as the "Energy Capital of the World" and is home to oil and gas giants such as Exxon Mobil, Chevron, Phillips 66 and ConocoPhillips. Houston-area companies own 56% of gas pipelines and 48% of oil pipelines in the United States, according to the GHP.

But the city’s economy has become more diverse in recent years, with the Texas Medical Center anchoring the region’s ever-growing healthcare industry. The world's largest medical complex, the Texas Medical Center, includes over 300 research laboratories and more than 60 member institutions, including numerous hospital systems.

Houston is also known as Space City because it's home to NASA’s Johnson Space Center, site of the historic manned space program that played a central role when Neil Armstrong and Buzz Aldrin took their first steps on the moon in 1969. Today, a new 240-acre commercial space and innovation hub called NASA Exploration Park is being developed at the Johnson Space Center campus for the next generation of human spaceflight.

With eight of the 50 top-selling master-planned communities nationwide in 2025, greater Houston is consistently a leader for single-family home development, according to data analysis firm John Burns Consulting. But with a recent influx of inventory and the highest number of active listings in the country as of March, median sales prices have dropped to $331,000 over the past 12 months, a 2.1% dip from the prior year.

The city’s suburbs are driving multifamily demand, with more than 62,000 multifamily units completed in the Houston market since 2023, CoStar data shows. Although some suburbs have seen positive signs, new inventory and move-outs in urban submarkets have pushed vacancies to 12.7% as of early 2026.

Houston’s office market has shown signs of stabilizing in early 2026, with little new office inventory being built and move-outs slowing. Vacancies fell to 19.5% as of the latest CoStar office market report, a decline from the 20.1% mark in early 2025.

Despite the improvement, Houston still faces elevated vacancies, especially in older buildings because of the ongoing challenge of oversupply. In 1983, 155 office buildings were completed in 12 months, according to the Greater Houston Partnership.

But industry experts say higher-quality Class A space continues to perform well, especially compared to the performance of Class B and Class C space.

"Houston isn't oversupplied; it's under-demolished," Chris Lewis, managing partner for Lee & Associates Houston, said at an April media event.

Although the World Cup could help stabilize the city’s hospitality industry, Houston hotels have struggled, highlighted by an 8.3% decline in revenue per available room year-over-year in March, the latest CoStar report shows.

The World Cup may also be a boon for the retail sector, which continues to struggle with turnover, CoStar reports. Move-outs have averaged roughly 3.2 million square feet for eight straight quarters, the highest sustained level since 2018, driven by bankruptcies of national retailers and rent pressures, among other factors.

Industrial construction starts in Houston hit a three-year high last year, with about 29.1 million square feet of industrial space underway, CoStar data shows. Houston's industrial space has seen five straight quarters of supply outpacing demand, with vacancy reaching 7.1% as of the latest data.

Itziar Aguirre, senior director of market analytics in Houston for CoStar, credited the city’s “ability to manage scale and logistics with minimal risk” with its selection as a World Cup host.

“Houston is highly accessible for international visitors, with major airports and extensive hotel capacity, supported by a long history of hosting large conventions and global events,” Aguirre noted.

Community leaders are investing in major infrastructure projects ahead of the World Cup. According to officials with Downtown Houston, an umbrella of organizations that support the area, about $30 million has been spent in improvements to downtown.

About half of that investment, funded partially by a Houston-Galveston Area Council grant, is going to improvements to the Main Street Promenade in downtown Houston to make the seven-block stretch a permanent, more pedestrian-friendly area.

Situated in the southwest quadrant of Houston’s inner-most Loop 610, NRG Stadium is the host venue for World Cup matches.

The stadium is home to the NFL’s Houston Texans and was built ahead of the franchise’s inaugural season in 2002. NRG will be known as Houston Stadium during World Cup matches due to FIFA policies prohibiting corporate names.

But the NRG name is on its way out, regardless. According to an April press release from Houston energy provider Reliant, the stadium is set to be known as Reliant Stadium in August for the second time in the venue's history. It opened as Reliant Stadium in 2002 before NRG took over the name in 2014.

Houston is no stranger to the world of soccer. The city’s Shell Energy Stadium is home to Major League Soccer’s Dynamo and the National Women’s Soccer League’s Dash. The city has also hosted numerous prominent soccer events in the past, including the men’s 2025 CONCACAF Gold Cup final match in July 2025 between U.S. and Mexico.

“Houston’s diverse population includes sizable soccer‑engaged communities, helping ensure strong attendance and atmosphere,” said Aguirre.

The stadium is also set to welcome international superstar Cristiano Ronaldo for at least two group stage matches involving his Portugal national team squad.