Houston's financial health continues to improve, report says

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Houston’s financial health continues to improve, a new report shows.

Olivia Pulsinelli

Web producer- Houston Business Journal

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Houston’s financial health is among the best in the nation, and it continues to improve, a new report shows.

The CredAbility Consumer Distress Index, which is published by Atlanta-based nonprofit CredAbility, is a quarterly index that tracks the financial condition of the average U.S. household. The index measures employment, housing, credit, how families manage household budgets and net worth.

The Houston-Sugar Land-Baytown area’s overall index score is 72.36 for the second quarter of 2012, up from 71.01 in the previous quarter and up from 70.52 in the same quarter a year earlier.

On a 100-point scale, a score between 60 and 70 indicates households are distressed or unstable, a score between 70 and 80 indicates they are weakening or at-risk, a score between 80 and 90 is good or stable and a score between 90 and 100 is excellent or secure.

Houston’s overall score ranks it No. 6 among metro areas with a population of 2 million or more. That’s the same spot it held in the first quarter.

The No. 1 market is the Boston area with a score of 77.42. The nation’s overall score is 71.25, up 1.4 points from the previous quarter and up 4.6 points from the same time a year earlier.

Texas ranks No. 26 among the states and Washington, D.C., with a second-quarter score of 72.37. That’s up from 70.43 in the previous quarter and up from 70.97 in the same quarter a year earlier.

Olivia Pulsinelli is the web producer for the Houston Business Journal's award-winning website.