According to the Texas Relocation Report, Texas is ranked no. 2 in the nation for relocation activity. It is estimated that nearly 600,000 new residents called Texas their new home in 2019. And the grand migration continues as more people move here from states like California, Florida, Louisiana, Illinois, Oklahoma, and others.
So why the sudden surge in relocation and what does this look like for our real estate market, specifically in the Rio Grande Valley?
In March of 2021, Elon Musk, SpaceX chief engineer and founder, tweeted to his 100 million followers the following:
“Please consider moving to Starbase or the greater Brownsville/South Padre area in Texas & encourage friends to do so!
SpaceX’s hiring needs for engineers, technicians, builders & essential support personnel of all kinds are growing rapidly.”
Now, the tweet itself may not have been the catalyst behind the recent stream of people moving and buying in the Valley, but SpaceX does play a role in relocating people here for work.
A little background on SpaceX if you’re not already familiar. Through the Starship project located at Boca Chica, near Brownsville, Cameron County, SpaceX is testing prototypes and has plans to send people to Mars. Lofty goal, but he also needs a lot of engineers, technicians, and workforce. This sudden demand, and a draw to work at the world-recognized brand, SpaceX, has made our corner of the United States at the tip of South Texas, quite the lucrative one.
Since 2020 median house prices have surged in the Brownsville-Harlingen area from $184,000 to $233,000. That’s a great increase in value and right now, sellers list their homes and only stay on the market for less than two weeks at a time before they are sold.
This rise in demand isn’t only happening in Cameron County. In July 2022, McAllen home prices were up 18.9% and selling for a median price of $255K. On average, according to Redfin.com, homes are only on the market for less than 20 days. Average home prices are up and while many factors go into this hike, it’s a matter of supply and demand.
And there was quite a demand and not enough homes to sell in 2020 and in 2021, but that’s changing and there are more choices out there for buyers. There is no doubt that this area is seeing tremendous growth and expansion.
Real estate reports show that there has been a recent shift and the Texas migration has slowed down. Developers of multifamily complexes have slowed, as have single-family home construction. This can be a good thing as it shifts things for the best, and prices begin to level out.
As the Valley continues to grow, so will the housing trends. Population is estimated to double by the year 2045 and according to research out of Rice University, the rise will be driven by significant employment demands. The RGV is definitely on the rise and the place to start calling home.