Claim: The Houston Rockets play basketball.

The Houston Rockets are an American professional basketball team based in Houston , Texas . The Rockets compete in the National Basketball Association -LRB- NBA -RRB- , as a member of the league 's Western Conference Southwest Division . The team plays its home games at the Toyota Center , located in downtown Houston . The Rockets have won two NBA championships and four Western Conference titles . The team was established as the San Diego Rockets , an expansion team originally based in San Diego , in 1967 . In 1971 , the Rockets moved to Houston .   The Rockets won only 15 games in their debut season as a franchise in 1967 . In the 1968 NBA draft , the Rockets , picking first overall , selected power forward Elvin Hayes , who would lead the team to its first playoff appearance in his rookie season . The Rockets did not finish a season with a winning record until the 1976 -- 77 season , when they traded for center Moses Malone . Malone went on to win the NBA Most Valuable Player -LRB- MVP -RRB- award twice and led Houston to the conference finals in his first year with the team . He also led the Rockets to the NBA Finals in 1981 where they were defeated in six games by the Boston Celtics , led by Larry Bird and future Rockets coach Kevin McHale .   In 1984 , the Rockets drafted center Hakeem Olajuwon , who would be paired with 7 ft Ralph Sampson , forming one of the tallest front courts in the NBA . Nicknamed the `` Twin Towers '' , they led the team to the 1986 NBA Finals -- the second NBA Finals appearance in franchise history -- where Houston was again defeated by the Boston Celtics . The Rockets continued to reach the playoffs throughout the 1980s , but failed to advance past the first round for several years following a second-round defeat to the Seattle SuperSonics in 1987 . Rudy Tomjanovich took over as head coach midway through the 1991 -- 92 season , ushering in the most successful period in franchise history . Olajuwon-led Rockets went to the 1994 NBA Finals and won franchise 's first championship against Patrick Ewing and the New York Knicks . The following season , the Rockets reinforced by another All-Star , Clyde Drexler , repeated as champions as the sixth seed in the West and swept the Orlando Magic , led by a young Shaquille O'Neal and Penny Hardaway , in four games . Houston became the lowest-seeded team in NBA history to win the title .   The Rockets acquired all-star forward Charles Barkley in 1996 , but the presence of three of the NBA 's 50 greatest players of all-time -LRB- Olajuwon , Drexler , and Barkley -RRB- was not enough to propel Houston past the Western Conference Finals . Each one of the aging trio had left the team by 2001 , and the Rockets of the early 21st century , led by superstars Tracy McGrady and Yao Ming , followed the trend of consistent regular-season respectability followed by playoff underachievement as both players struggled with injuries . After Yao 's early retirement in 2011 , the Rockets entered a period of rebuilding , completely dismantling and retooling their roster . The acquisition of franchise player James Harden in 2012 has launched the Rockets back into championship contention in the mid-2010s . The Rockets , under general manager Daryl Morey , are notable for popularizing the use of advanced statistical analytics -LRB- similar to sabermetrics in baseball -RRB- in player acquisitions and style of play .