McAllen, Texas, Is Growing Fast. Here's What That Means for Anyone Buying or Selling There

Written by:

Alejandra Rodriguez

Date:

27 May 2026

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While many mid-sized American cities are struggling to attract investment amid economic uncertainty, McAllen, Texas, is moving in the opposite direction. Situated along the U.S.-Mexico border at the southern tip of Texas, the city is posting steady growth in jobs, retail activity, and industrial development, even as the broader economy cools.

Isaac Tawil, City Manager for McAllen and a former attorney who spent over two decades shaping the city’s development decisions, says the momentum is measurable. Sales tax revenue has been growing at five to eight percent per year, a reliable indicator that businesses are opening and consumers are spending. The city’s daily population nearly doubles, swelling from roughly 150,000 residents to between 300,000 and 350,000 as shoppers and workers cross from Mexico.

New industrial investment is arriving, too. Vallejo, a smart manufacturing company, is already halfway through construction on a plant that will produce computer systems for automobiles. That project alone is expected to bring 4 to 500 jobs to the area.

“Our market is continuing to see tremendous continued growth,” Tawil says, “in what we recognize is a very challenging global economy.”

What This Means for Buyers

For anyone considering buying in McAllen, the fundamentals point toward sustained demand. Job growth is happening across multiple sectors: industrial, retail, hospitality, and professional services. More jobs mean more demand for housing, which tends to support home values over time.

The city has also made a structural change that buyers should be aware of. McAllen recently replaced its 1970s-era development code with a new Unified Development Code that encourages walkable, mixed-use neighborhoods, housing, shops, restaurants, and entertainment within walking distance of each other. That kind of neighborhood design tends to hold value well and attract buyers who want convenience without relying on a car.

Infrastructure is another advantage. McAllen has a water system Tawil describes as the best in Texas, with a $300 million expansion already underway. The city consistently ranks among the top three safest cities in the United States. These details don’t make national headlines but matter when deciding where to buy.

What This Means for Sellers

If you already own in McAllen, the combination of steady job growth, rising investment, and a city government actively working to attract development creates conditions for continued demand. Sellers in a market with strong employment fundamentals typically have more leverage than those in cities where employers are pulling back.

The new development code is also reshaping older parts of the city in ways that could lift surrounding property values. Areas that were once strictly residential or strictly commercial are being reimagined as mixed-use districts, and that kind of neighborhood upgrade often raises the desirability of nearby homes.

The Border Advantage Most People Miss

McAllen’s location on the U.S.-Mexico border functions as an economic asset rather than a liability. The city operates two international bridges and a growing international airport. Visitors and shoppers from Mexico’s Tamaulipas region cross regularly, fueling a retail and hospitality economy that most inland cities don’t have access to.

Tawil notes that proximity to the border gives residents and businesses access to an entirely separate consumer market, one that is actively seeking connection to the U.S. economy. “Having your family and business partners living across the border gives you access to a whole other economy,” he says.

He’s also direct about media portrayals of border communities. “What you hear about the border is oftentimes essentialized to sell news,” he says, his advice: visit McAllen and see it for yourself.

What to Watch Going Forward

Several factors will determine whether McAllen’s growth continues at its current pace. Tawil is watching fuel prices, which affect the flow of goods and people through the city’s bridges and airport. Healthcare costs and AI-related infrastructure needs are also on his radar. His approach remains steady: keep investing in public safety and infrastructure, and the city will be positioned to handle disruptions.

For buyers and sellers, the signals worth tracking are job announcements, new construction permits, and whether the mixed-use rezoning process continues to attract developers into older neighborhoods. Each indicates whether demand in McAllen has room to keep growing – or whether the current pace is reaching its limits.

McAllen is not a market most people outside Texas know well. Still, it’s building the kind of foundation, diversified employment, infrastructure investment, and cross-border economic activity that supports long-term real estate value.

This article shares insights about local real estate and development trends in McAllen, Texas. It is not legal, financial, or investment advice. Quotes and information are drawn from an interview with Isaac Tawil, City Manager of the City of McAllen.

About the Expert: Isaac Tawil is City Manager, City of McAllen, McAllen, Texas. Focusing on urban development, city infrastructure, and economic growth along the U.S.-Mexico border.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.