South Texas

Market Updates
Written By Zach Ware

Hi

We wanted to share some key insights from our recent dive into the South Texas market, covering Laredo, McAllen, and Brownsville.

Population & Growth

  • Laredo and Brownsville: 1% growth rate over the past five years.

  • McAllen: 4.2% growth rate, boosted by twin cities across the border.

Industrial Employment and Occupancy

  • Laredo: 97.6% occupancy rate, with 3.2 million square feet under construction.

  • McAllen and Brownsville: 96.8% and 94.32% occupancy rates, respectively, with less than a million square feet under construction combined.

Income Growth

  • Laredo: Median income now around $60,000.

  • McAllen and Brownsville: Median incomes around $50,000, up significantly from 2018.

Economic Impact and Trade

Laredo handles 60% of U.S.-Mexico trade, with significant employment in freight, transportation, and warehousing.

Home Prices & Affordability

Home prices have increased, but affordability remains favorable due to strong income growth and low construction costs.

Income Growth

Income in Billings has significantly grown due to proximity to Bakken oil fields and major refineries, with median incomes rising from $60,000 to $80,000 between 2018 and 2023.

Rent and Housing Affordability

Rent growth averages at 5% CAGR over the past five years. Median home price has increased by 54%, with median household income rising by 34.4%, indicating a healthier growth pattern than the national average.

Future Prospects

The South Texas borderplex cities are projected to reach a combined population of around 7 million by 2040, supported by significant investments in infrastructure and industrial developments.

 

Thank you for taking the time to read this analysis. We look forward to discussing these insights further with you.

 












Zach Ware
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