Texas Is Not Like Everyone Else!

Now New York-based Standard & Poor's, in a new research report, pretty much agrees with that assessment. The ratings agency said the Lone Star State, with its large and diversified economy, continues to outperform the nation in terms of housing, economic activity and employment.

"By most measures, Texas has been one of the most rapidly expanding and diversifying economies in the nation over the past decade. The state's growing population, coupled with what we believe is a relatively low cost of living and of doing business, has fueled strong growth in industries and sectors that just two decades ago had a limited presence in the state."
Analysts also think Texas is poised to "recover earlier and at a faster rate than most other states" given its continued population growth and business-friendly environment.

The ratings agency did note the state, like many others, has a budget gap and also mentioned pressure on cash flows from the public school financing system — a growing portion of which the state is required to fund.