Houghton left Arsenal last month, joining fellow England internationals Jill Scott, Karen Bardsley and Toni Duggan at Women's Super League newcomers Manchester City ahead of next season.
The 25-year-old was Team GB's top goalscorer at London 2012 scoring three times in five matches, and Scott believes Houghton will continue the progress she has made since the Games.
"I think the Olympics did wonders for Steph and I think we've seen Steph grow as a player," Scott said. "I think the main thing for her is that she is still so young.
"She still has so much to learn and she is going to be a great player and with the move to Man City she is going to be on the ball training every day.
"That will help her game but how I have seen Steph progress and as long as she keeps going in that direction she is going to be a great player."
Houghton's goalscoring exploits at the Olympics came despite playing at left-back for Team GB leading to her being named as the best player in that position during the Games.
The Sunderland youth product has played all over the pitch for club and country but Scott believes Houghton will eventually settle and make the position at the heart of the defence her own.
"I think her best position is centre half," Scott said. "I think if you ask Steph she would say that just because she gets a lot of time on the ball and her passing range is amazing.
"I think she has found her position now during the season that has just gone - she has played a centre-half for Arsenal all season so she's got that experience now.
"Some of her best performances for England have been at centre-back so that is where I think we will see her in the long run I think."