RealReal EstateEstate MarketMarket OverviewOverview Brownsville-Harlingen-Brownsville-Harlingen- SanSan BenitoBenito Jennifer S. Cowley Assistant Research Scientist Mukta Naik Graduate Research Assistant Texas A&M University June 2001 © 2001, Real Estate Center. All rights reserved. RealReal EstateEstate MarketMarket OverviewOverview Brownsville-Harlingen-SanBrownsville-Harlingen-San BenitoBenito Contents 2 Population 5 Employment 9 Job Market 10 Major Industries Business Climate 13 Education 14 Transportation and Infrastructure Issues 15 Urban Growth Patterns 16 Map 1. Growth Areas, Brownsville Map 2. Growth Areas, Harlingen 17 Public Facilities Housing 21 Multifamily 22 Manufactured Housing 23 Retail Market 24 Map 3. Commercial Building Permits, Harlingen 25 Office Market 26 Industrial Market 27 Conclusion RealReal EstateEstate MarketMarket OverviewOverview Brownsville-Harlingen-SanBrownsville-Harlingen-San BenitoBenito Jennifer S. Cowley Assistant Research Scientist Mukta Naik Graduate Research Assistant Rio Hondo Harlingen South Padre Island San Benito Bayview Rangerville US 77 Los Fresnos SH 100 Port Isabel Rancho Viejo SH 48 US 281 Brownsville Area Cities and Towns County Land Area of Brownsville MSA Brownsville Rio Hondo Cameron 954 square miles Combes San Benito Harlingen Santa Maria Population Density (2000) La Feria Santa Rosa 351 people per square mile La Paloma South Padre Island Rancho Viejo he Brownsville-Harlingen-San by Mexico to the south, the McAllen ing to the Census Bureau, the MSA was Benito Metropolitan Statistical MSA to the west and the Gulf of the 28th fastest growing in the country T Area (MSA) is at the southern- Mexico to the east. Corpus Christi lies and fifth fastest growing in the state be- most tip of Texas. The MSA is bordered about 150 miles to the north. Accord- tween 1990 and 2000. 1 POPULATION Kelly Air Force Base, San Antonio Brownsville MSA Population Year Population 1990 261,693 1991 269,166 1992 277,166 1993 287,950 1994 296,948 1995 304,459 1996 311,522 1997 317,719 1998 324,046 1999 329,131 2000 335,227 Source: U.S. Census Bureau Area Cities With 10,000 or More Residents Growth 1990–2000 City 2000 Population (in percent) Brownsville 139,722 21.4 Harlingen 57,564 20.4 San Benito 23,444 12.2 Source: U.S. Census Bureau etween 1990 and 2000, the pected to continue to be in the north- the MSA’s population predicted to Brownsville MSA’s population ern portion of the city. grow 3 percent per year through 2020, Bhad a growth rate of more than The Brownsville-Harlingen area’s according to the Texas State Data Cen- 2.6 percent per year. In Brownsville, population is growing at a rate signifi- ter. The Texas Water Development the MSA’s fastest growing city, the ma- cantly faster than the state as a whole. Board predicts 2.1 percent growth per jority of growth has been and is ex- That trend is expected to continue with year between 2000 and 2020. 2 Texas Metropolitan Area Population Change, 1990–2000 (in percent) McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1 Austin-San Marcos 48.2 Tyler 15.5 Laredo 44.9 El Paso 14.9 Dallas 31.5 Corpus Christi 14.3 Brownsville-Harlingen-San Benito 28.9 Victoria 13.1 Brazoria County 26.1 Waco 12.9 Houston 25.8 Texarkana 9.4 Fort Worth-Arlington 25.1 Lubbock 9.0 Bryan-College Station 25.1 Wichita Falls 7.8 Texas 22.8 Longview-Marshall 7.7 Killeen-Temple 22.6 Beaumont-Port Arthur 6.6 San Antonio 20.2 Abilene 5.8 Sherman-Denison 16.4 San Angelo 5.6 Amarillo 16.2 Odessa-Midland 5.1 Source: U.S. Census Bureau Brownsville MSA Projected Population Texas State Texas Water Year Data Center Development Board 2005 400,364 — 2010 450,485 405,463 2015 494,547 — 2020 540,240 476,992 Sources: Texas State Data Center and Texas Water Development Board Projected Population Growth, 2000–2020 (in percent) 80 60 40 126.0 20 40.2 0 Brownsville-Harlingen-San Benito MSA Texas Source: Texas State Data Center 3 Household Composition Brownsville MSA Texas Median household size (1990) 3.57 2.73 Population younger than 18 (1999, in percent) 35.3 28.5 Population 65 and older (1999, in percent) 11.3 10.1 Source: U.S. Census Bureau Ethnic Distribution (in percent) Brownsville MSA Texas Ethnicity 1990 2000 1990 2000 Hispanic 81.7 84.3 25.3 32.0 White 17.6 14.5 60.8 52.4 Black 0.3 0.3 11.7 11.3 Asian 0.2 0.5 0.3 0.3 American Indian 0.0 0.1 1.8 0.3 Other 0.2 0.0 0.1 0.1 Two or more races* — 0.3 — 1.1 * For the 2000 Census, the Census Bureau changed the “race” options, allowing people to report their race as “other” or as two or more races. Source: U.S. Census Bureau he population of the Brownsville Cameron County’s location along panics are expected to make up 38 MSA is made up of a larger per- the border with Mexico in part ac- percent of the Texas population by the T centage of young people than in counts for the large Hispanic popula- year 2025. The per capita income for other areas in Texas. The MSA’s aver- tion in the MSA. The MSA’s Hispanic the MSA was $14,280 in 1999. The age household size is larger than the population is the fastest growing ethnic state average was $26,834, according to state average. group, as it is in Texas as a whole. His- the U.S. Bureau of Economic Analysis. 4 EMPLOYMENT Source: U.S.BureauofLaborStatistics 10 12 14 16 18 20 0 2 4 6 8 Brownsville-Harlingen-San BenitoMSAUnemploymentRate January-95 100,000 120,000 140,000 Source: U.S.BureauofLaborStatistics 20,000 40,000 60,000 80,000 May Brownsville-Harlingen-San BenitoMSAEmployment 0 Sept January-96 1990 May 1991 Sept 1992 January-97 Brownsville (in percent) May 1993 Sept 5 1994 January-98 1995 May Harlingen Sept 1996 January-99 1997 May 1998 Sept January-00 1999 May 2000 Sept January-01 Brownsville Top Ten Employers Top Ten Private Employers Brownsville IndependentBergstrom School District Air Force Base,H-E-B Food Austin Stores Public education Retail grocery 6,400 employees 1,102 employees University of Texas – Brownsville Convergys Corp. Education Call center 1,646 employees 954 employees Cameron County Brownsville Medical Center Local government Health care 1,450 employees 925 employees H-E-B Food Stores Valley Regional Medical Center Retail grocery Health care 1,102 employees 728 employees Convergys Corp. AMFELS Call center Manufacturing 954 employees 652 employees Brownsville Medical Center Levi Strauss Health care Clothing manufacturing 925 employees 630 employees City of Brownsville Trico Technologies Local government Manufacturing 900 employees 548 employees Valley Regional Medical Center Wal-Mart Health care Retail 728 employees 538 employees AMFELS Horace Small Apparel Manufacturing Clothing manufacturing 652 employees 493 employees Levi Strauss Allison Manufacturing Clothing manufacturing Manufacturing 630 employees 403 employees Source: Brownsville Economic Development Council 6 Harlingen Top Ten Employers Top Ten Private Employers Valley Baptist MedicalBergstrom Center Air Force Base,Valley Baptist Austin Medical Center Health care Health care 2,321 employees 2,321 employees Harlingen Consolidated Independent School District Fruit of the Loom School district Clothing manufacturing 2,286 employees 1,029 employees Fruit of the Loom Wal-Mart Superstore Clothing manufacturing Retail 1,029 employees 487 employees City of Harlingen H-E-B Food Stores Local government Grocery 554 employees 407 employees Wal-Mart Superstore Southwestern Bell Telephone Retail Telephone 487 employees 287 employees Texas State Technical College Q.C. Onics Higher education Electrical assembly 450 employees 280 employees H-E-B Food Stores Su Clinica Familiar Grocery Health care 407 employees 260 employees Rio Grande State Center Acetylene Oxygen Company Mental health Miscellaneous gases 370 employees 205 employees Southwestern Bell Telephone Sweezy Construction Telephone Construction 287 employees 203 employees Q.C. Onics Tex Steel Electrical assembly Steel doors and frames 280 employees 179 employees Source: Harlingen Chamber of Commerce, first quarter 2001 7 Employment Growth by Industry Brownsville MSA Texas Employment growth, 2000 (in percent) 5.2 3.2 Unemployment rate (in percent) 8.7 4.3 New jobs in 2000 5,400 288,900 Employment growth by sector, 2000 (in percent) Services 8.2 4.7 Trade 4.3 3.1 Manufacturing –0.8 0.1 Mining n/a 2.3 Finance, insurance and real estate 2.6 1.3 Construction 13.5 6.2 Government 4.2 1.7 Transportation, communications and public utilities 5.8 5.1 Sources: Texas Workforce Commission Texas Metropolitan Area Employment Change, 1990–2000 (in percent) Austin-San Marcos 58.8 El Paso 15.4 Laredo 40.3 Waco 14.3 McAllen-Edinburg-Mission 35.8 Lubbock 14.0 Dallas 30.4 Sherman-Denison 12.5 Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2 Bryan-College Station 29.2 Abilene 11.4 Killeen-Temple 28.7 San Angelo 10.7 San Antonio 28.6 Corpus Christi 10.3 Fort Worth-Arlington 23.7 Galveston-Texas City 8.2 Texas 23.3 Wichita Falls 7.8 Tyler 22.9 Odessa-Midland 6.5 Victoria 22.4 Texarkana 4.5 Houston 22.1 Beaumont-Port Arthur 3.5 Amarillo 18.6 Brazoria County 2.3 Source: U.S. Bureau of Labor Statistics, February 2001 he unemployment rate in the ment in the MSA was at relatively low 109,200, according to the Texas Brownsville-Harlingen-San levels in 2000, dropping by 1.1 per- Workforce Commission. The U.S. Bu- T Benito MSA has historically centage points from 1999 to 8.7 per- reau of Labor Statistics reported civil- been much higher than the state aver- cent in 2000, according to the Texas ian employment to be 118,189 in age because of high immigration Workforce Commission.