Everyone need to stop acting like SMU, Houston, and all the other schools are limited to their home cities. It is merely easier to stay in the home city, there is nothing difficult about finding a job outside of the school's home city. Any grad from a Texas law school can easily work in any city within Texas, including Austin.
As a current law student at SMU I have to say that it is "difficult" to find - at least summer employment - in Houston UNLESS you have (1) killer grades/rank, (2) local ties, and/or (3) in a specialized filed like IP law. While I agree it is not impossible to graduate from SMU and move to Houston (or graduate from UofH and move to Dallas), that is assuming you have rocked the curve. My friends that do have summer jobs in Houston are in the top 10% of their class and have local ties.
Also, I have heard that the big firm legal market in Houston is a bit easier to get into over Dallas, but these firms will still require class rank or specialization. Just something else to consider...I don't want any of y'all thinking it will be a cakewalk when finding jobs in the Houston market.