Houston contractors and tradespeople show customer payments, builder draws and subcontractor expenses. The lender looks at a 12 or 24 month stretch of statements, depending on the program.
The local numbers
The Bureau of Labor Statistics tallies roughly 5,013 specialty trade contractors establishments with employees in Harris County, together employing approximately 86,589 people at an average annual pay of $77,976. Solo operators do not show up in payroll data, so the pool of contractors and tradespeople is bigger than it looks. The employment location quotient is 1.07, meaning it tracks the national average.
On the household side, Census estimates show approximately 21,973 self-employed residents of the city of Houston working in construction, which is 18.0 percent of everyone employed in that group and 18.3 percent of all self-employed residents.
Houston snapshot
| Measure | Figure |
|---|---|
| Employer establishments in specialty trade contractors | 5,013 |
| Jobs at those establishments | 86,589 |
| Average annual pay | $77,976 |
| Self-employed residents in the related group | 21,973 |
| Share of that group who are self-employed | 18.0 percent |
| Statewide share for the same group | 22.5 percent |
Three streams of work
New subdivisions in Katy, Cypress, Fulshear and Conroe, repair and remodel work after floods and wind, and industrial maintenance along the Ship Channel create steady demand. Some contractors specialize in one stream and others handle all three.
The housing market for this work
On the ground in the city of Houston, the median home is valued near $278,000, around the Texas median of $284,000; 0.4 percent of housing units are seasonal or occasional use homes; and the median year built is 1982. Averages such as these do not replace an appraisal of the house you are buying.
Surges and gaps
After a major storm, demand spikes and then fades. An underwriter may ask whether a surge will continue, so a history of routine customers helps. Industrial work follows plant turnaround schedules, which can leave quiet months.
Insurance and pass-throughs
Contractors who receive insurance payments directly may pass part to suppliers or subs. Traceable pass-throughs can be set aside. Keep invoices and contracts for the biggest payments.
Licenses and districts
Texas licenses certain trades, such as electricians and plumbers, at the state level. Licenses and insurance support the file. On a home purchase, taxes include special districts and flood record matters.
Making the file easier
The usual home in Houston was built close to 1982, so property condition is part of the conversation alongside income. Contractors are paid in draws, deposits and final payments, which makes monthly income lumpy. A loan analyst reviews the entire window and checks that the pattern fits the work: more deposits when projects start and finish, and a quieter stretch when jobs are in progress. Keep a project list that shows which deposit belongs to which job.
How Houston compares
The Texas number for the same group is 22.5 percent, which puts Houston (18.0 percent) below the state. Among the 22 Texas areas on this site with enough workers to measure, Houston ranks 20th for self-employment in this group. At $77,976, pay lands in the middle of the range, which makes for typical deposit sizes and typical expenses.
Planning around timing
Subcontractors who work under a general contractor generally receive several large checks and a handful of small ones. The underwriter expects to see who pays you and whether the relationship looks steady. A 1099 from your main payer, plus invoices for the largest deposits, is a good start.
Getting the details right
Median gross rent in Houston is approximately $1,361 a month, which is the yardstick many local owners use when they decide to buy. If you recently moved from employee to owner in the same trade, for example a foreman who started his own crew, the earlier W-2 pay documents show that you have been doing this work for years. Some programs treat that continuity as part of your self-employment history. Bring the pay stubs.
Employers in the work around Houston
| Line of business | Establishments | Jobs | Average annual pay |
|---|---|---|---|
| Building equipment contractors | 2,293 | 41,065 | $81,851 |
| Foundation, structure and exterior contractors | 1,054 | 18,261 | $74,212 |
| Building finishing contractors | 977 | 14,550 | $70,467 |
| Other specialty trade contractors | 689 | 12,713 | $79,458 |
We pulled the local figures from the Census Bureau and BLS public tables; limits and definitions are on the data sources page.
Not a loan offer or a quote. Rules differ by program, and a lender confirms your income, debts and ability to repay.
Related
- Bank statement loans in Houston, TX
- Contractors and Tradespeople: national guide
- What you need to prove
- Consultants and Freelancers in Houston
- Owner-Operator Truckers in Houston
- Doctors and Dentists in Houston
- Contractors and Tradespeople in Dallas-Fort Worth, TX
- Contractors and Tradespeople in Fort Worth, TX
Ready to look at Houston?
Start online or call us. We will say what to gather before anything else.
Frequently asked questions
Do I need a state license to use statements?
A license supports the file, and some trades must have one. Ask your loan officer what to include.
Will a post-flood surge help or hurt?
It may raise points about continuity. Routine customers and backlog help.
How many contractors and tradespeople are there in Houston?
Payroll data for Harris County show approximately 5,013 establishments with employees in specialty trade contractors, and Census estimates count around 21,973 self-employed residents of the city of Houston in the related industry group. Owners with no employees show up only in the Census number.
What is unique about Houston for contractors and tradespeople?
Programs apply the same rules to deposits wherever you live. What changes is the house and the neighborhood. The city of Houston has a median home value near $278,000 ($284,000 for Texas), with 42 percent of residences owned and a median year built of 1982.