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Uncategorized •
February 19, 2025
5 Cities Where Home Prices Could Soon Decline—and What It Means for You
1. Provo, Utah: The Top Market at Risk
Median List Price: $566,375
Year-Over-Year Change: Down 1.4%
Provo’s robust growth in recent years is catching up with it. Demand soared during the pandemic as remote workers sought scenic, less-crowded locales, sending prices surging by about 38% from January 2020. Yet with those buyers now pausing or looking elsewhere, Provo could experience the steepest decline of the five high-risk metros.
Why It’s Changing:
- Rapid price appreciation has outpaced local incomes.
- Inventory is rising as buyer demand cools.
2. Tucson, Arizona: Slight Dip Amid a Post-Boom Reset
Median List Price Change (YoY): Down 1.9%
Similar to Provo, Tucson saw a huge upswing in popularity among out-of-state buyers looking for warmer climates. However, mortgage rate hikes, plus cost-of-living adjustments, mean the market is taking a slight step back.
Why It’s Changing:
- The Sun Belt real estate boom is leveling off.
- Higher mortgage rates are limiting buyers’ budgets.
3. Albuquerque, New Mexico: From Hidden Gem to Cooling Market
Once considered a “hidden gem” for affordability and scenic beauty, Albuquerque’s real estate market heated up during the remote-work wave. Now, CoreLogic’s data indicates it could see a modest dip, though likely not a crash.
Why It’s Changing:
- Increased supply is offering buyers more options.
- Local economic factors and higher borrowing costs dampen demand.
4. Phoenix, Arizona: Readjusting After a Fast Ascent
Phoenix’s reputation as an affordable city with plentiful sunshine drove its market into overdrive throughout 2021 and 2022. CoreLogic projects it’s at high risk of a price drop this year.
Why It’s Changing:
- Steep price increases have priced out many first-time buyers.
- More listings and slower sales lead to more competitive pricing.
5. West Palm Beach, Florida: Largest Year-Over-Year Decline
Median List Price Change (YoY): Down about 10%
Of the five cities, West Palm Beach shows the biggest year-over-year price drop. The area exploded in popularity among remote workers and retirees, but it appears to be recalibrating in the face of elevated mortgage rates and buyers’ shifting preferences.
Why It’s Changing:
- Rapid pandemic-era growth is leveling off.
- Higher insurance and property tax costs may deter some buyers.
The Broader Market Picture
Despite these localized declines, CoreLogic expects national home prices to keep climbing, around 4.1% through the end of 2025—similar to many industry forecasts. Mortgage rates hovering around 7% and the Federal Reserve’s pause on interest rate cuts suggest it won’t be the frenzy of 2021 or 2022, but homeownership remains a key goal for many Americans.
What It Means for Buyers
- Opportunities in Correcting Markets: If you’ve had your eye on one of these five cities, a dip in prices might open doors that were previously shut.
- Mind the Mortgage Rates: Even if homes cost less, higher interest rates can offset some of those savings. Consider shopping around for better financing options.
What It Means for Sellers
- Price Strategically: These aren’t the days when just any listing flies off the market. Work with a knowledgeable real estate agent who understands local comps and buyer demand.
- Consider Timing and Upgrades: If you can hold off until the market stabilizes, that might work in your favor. If not, small improvements—like fresh paint or updated fixtures—may help your home stand out.
Final Thoughts
The U.S. housing market is expected to keep trending upward overall, but not uniformly. If you’re buying or selling in Provo, Tucson, Albuquerque, Phoenix, or West Palm Beach, pay extra attention to local market conditions, mortgage rates, and your own financial situation. A dip in home prices isn’t necessarily a disaster; it’s part of the normal ebb and flow that defines real estate cycles. With the right strategy and the right professional guidance, you can navigate this cooling spell to your advantage.
Stay informed, be flexible, and remember—real estate decisions often hinge as much on personal circumstances as they do on economic trends.
investments • Uncategorized •
January 9, 2025
The Valley’s Hidden Gems – Main Streets
Investing on Main Street in South Texas: How Real Estate Investors Can Capitalize on Downtown Revitalization
Across many parts of South Texas—cities like McAllen, Weslaco, Harlingen, and the surrounding Rio Grande Valley—traditional “Main Street” areas are enjoying a remarkable renaissance. Once overshadowed by larger retail chains and suburban developments, these historic downtowns are now drawing renewed interest from local governments, communities, and savvy investors. If you’re a real estate investor looking for emerging opportunities, you’ll want to keep a close eye on the revitalization happening right in South Texas.
Why Main Street in South Texas?
- Cultural & Community Appeal
In McAllen, Weslaco, Harlingen, and the broader Rio Grande Valley, there’s a distinctive local flavor—rooted in a unique blend of Texan and Hispanic cultures. These Main Street districts provide walkable downtowns brimming with small businesses, cultural festivals, and an atmosphere that shopping malls simply can’t replicate. - Strong Regional Growth
South Texas has seen consistent growth over the years, with population increases fueled by a robust trade sector, healthcare expansions, and cross-border commerce. This influx of new residents and businesses helps drive demand for both commercial and residential properties in Main Street corridors. - Attractive Development Incentives
Economic development corporations (EDCs), local government grants, and community programs in the Rio Grande Valley are often ready to support downtown revitalization. When public and private entities join forces, the cost of acquiring and improving properties can be significantly reduced.
Investor Advantages
- Lower Entry Costs
Compared to big metropolitan hubs, properties in cities like Weslaco, Harlingen, and even McAllen can come with more approachable price tags. This can be especially attractive if you’re expanding your portfolio or just starting out in commercial real estate. - Diverse Income Streams
Mixed-use properties—retail on the ground floor, apartments or offices above—are common in revitalizing downtowns. This setup mitigates risk by allowing income from multiple sources, such as small retailers, professional service providers, and residential tenants. - Long-Term Appreciation
As South Texas communities invest in infrastructure, beautification projects, and cultural events, property values in these downtown districts typically rise. Being early to a revitalization effort can lock in advantageous purchase prices before the larger market catches on. - Community Goodwill
A Main Street project isn’t just another real estate transaction; it’s a chance to uplift a local area. Investors who bring new life to a historic building or support small businesses often enjoy positive community relations, which can streamline permitting and foster tenant loyalty.
How to Make Your Move on Main Street
- Target Growing Towns
- McAllen: A thriving hub known for its retail scene, cultural events, and cross-border commerce.
- Weslaco: Centered in the heart of the Rio Grande Valley, close to major highways and economic corridors.
- Harlingen: Boasts strong healthcare, aviation, and manufacturing industries, fueling consistent demand for real estate.
Focus on towns or neighborhoods with well-established revitalization efforts, supportive local leadership, and consistent population growth.
- Seek Local Incentives
- Tax Breaks & Grants: Check for downtown-specific programs in McAllen, Weslaco, or Harlingen, such as façade-improvement grants or historic preservation funds.
- Opportunity Zones: Portions of South Texas may fall under Opportunity Zone designations, offering significant tax benefits for capital gains reinvestment.
- Embrace Mixed-Use Development
Look for properties you can adapt to a combination of retail, office, and residential spaces. A ground floor with cafes or boutique shops—coupled with loft apartments or coworking spaces upstairs—appeals to a broad tenant base and diversifies your revenue. - Engage with the Community
- Attend local city council and economic development meetings.
- Collaborate with local business groups and chambers of commerce to understand exactly what’s missing from the downtown ecosystem.
Showing genuine interest in revitalizing historic spaces and meeting local needs builds goodwill that can be invaluable when navigating permits or seeking community feedback.
- Respect Local Heritage
From historic storefronts in Harlingen to Spanish colonial architecture in Weslaco, South Texas communities take pride in their heritage. Preserving these local design elements while modernizing the interiors can enhance the charm and value of your property. - Play the Long Game
Downtown revitalization doesn’t happen overnight. Stick to a thoughtful investment strategy:- Budget for phased renovations.
- Build strong ties with reliable local contractors and property management.
- Keep an eye on emerging trends and new businesses moving into the area.
Final Thoughts
Investing in Main Street properties across South Texas can be both financially rewarding and personally fulfilling. Not only do you stand to benefit from lower acquisition costs, tax incentives, and growing demand, but you also have the opportunity to preserve—and shape—the character of these unique communities. By prioritizing research, local partnerships, and a clear vision, you can transform a historic downtown property into a thriving mixed-use investment that benefits both your bottom line and the greater community.
If you’ve been thinking about exploring the real estate potential in the Rio Grande Valley, now is the time to look closely at Main Street districts in McAllen, Weslaco, Harlingen, and beyond. After all, few places offer such a blend of cultural vibrancy, economic opportunity, and local charm—three ingredients that can make for a truly standout investment.
Want to invest in the Rio Grande Valley?
investments •
November 19, 2024
A Sweet Legacy Up for Grabs: South Texas’s Iconic Sugar Mill is Now on the Market
For five decades, the Rio Grande Valley Sugar Mill has been more than just a place of production—it’s been a pillar of the region, symbolizing resilience and community spirit. Originally launched in the early 1970s, the mill was a bold re-entry into the sugar market for South Texas. After years of agricultural study and commitment from local farmers, the cooperative’s efforts culminated in a $28 million facility dedicated to processing sugar cane—a crop with deep historical roots in the area dating back to the early 1800s.
This mill has since processed millions of tons of sugar cane annually, employed hundreds of local residents, and produced blackstrap molasses and raw sugar for decades. More than a source of income, it has provided a sense of unity for a community built on hard work and dedication to the land.
But as seasons change, so too does industry , due to severe drought conditions in the area has forced the sugarcane growers to shut down. The RGVSG was one of the top-10 producers of raw sugar in the U.S., processing more than 1.5 million tons of sugar annually. After a successful 50-year run, the sugar mill has officially ceased operations and is now listed on the market. For those with an interest in agriculture, history, or development, this property presents a unique opportunity. Whether you’re a developer, a historical preservation enthusiast, or simply curious about South Texas’s agricultural legacy, this property carries a rich story waiting to be reimagined.
Contact me for more info.
investments • Technology •
November 13, 2024
Investing in Data Centers in South Texas: A Strategic Opportunity in the Digital Age
In today’s rapidly evolving digital landscape, data is the new oil. As the demand for data storage and processing power surges, investing in data centers has become a lucrative opportunity for forward-thinking investors. South Texas, with its strategic location and burgeoning tech ecosystem, stands out as a prime destination for such investments. Major companies like SpaceX, Amazon, and leading LNG enterprises are fueling this growth, making South Texas an even more attractive hub for data center development.
The Rising Demand for Data Centers
The digital age has ushered in an era where data drives decision-making across industries. From streaming services and cloud computing to artificial intelligence and the Internet of Things (IoT), the need for robust data infrastructure is undeniable. Global data consumption is growing exponentially, and businesses require reliable facilities to store and manage this information securely.
Why South Texas?
Strategic Location
South Texas offers a unique geographical advantage. Proximity to major cities like Houston and San Antonio, as well as access to international markets via the Gulf of Mexico, makes it an ideal hub for data center operations. The region serves as a gateway between the United States and Latin America, providing strategic connectivity options for global enterprises.
Economic Incentives
The region provides attractive economic incentives for businesses. Tax benefits, grants, and a favorable regulatory environment encourage investment and development in the tech sector. Local governments are keen on fostering technological growth, offering support that reduces operational costs for data center facilities.
Growing Tech Ecosystem Driven by Industry Giants
South Texas is witnessing a tech renaissance, significantly propelled by the investments of major corporations:
SpaceX’s Transformative Presence
SpaceX has established a significant presence in Boca Chica, South Texas, with its Starship launch facility. This venture has not only boosted the local economy but also positioned the region as a hub for aerospace innovation. The high-tech nature of SpaceX’s operations requires advanced data processing and storage solutions, increasing the demand for local data centers. The company’s activities attract a skilled workforce and ancillary businesses, further enhancing the region’s technological ecosystem.
Amazon’s Strategic Expansion
Amazon has expanded its footprint in Texas, including the development of fulfillment centers and logistics hubs in South Texas. Additionally, Amazon Web Services (AWS), the company’s cloud computing division, continues to grow, necessitating robust data infrastructure. Amazon’s presence amplifies the demand for data centers to support e-commerce operations, cloud services, and streaming platforms, presenting lucrative opportunities for investors.
LNG Companies Fueling Technological Needs
The Liquefied Natural Gas (LNG) industry is booming in South Texas due to the region’s rich natural resources. Leading LNG companies are investing heavily in infrastructure, including sophisticated technologies that require substantial data processing capabilities. Operations such as real-time monitoring, logistics management, and regulatory compliance are data-intensive, driving the need for advanced data centers.
Enhanced Connectivity and Infrastructure
Investments by big tech companies have led to improvements in local infrastructure. Enhanced broadband capabilities, advanced power grids, and state-of-the-art facilities make South Texas an optimal location for data centers. The presence of these companies ensures continuous infrastructure development, benefiting data center operations.
Benefits of Investing in Data Centers
- High Return on Investment (ROI): Data centers offer stable and predictable revenue streams, making them appealing for investors seeking long-term gains.
- Infrastructure Support: Local governments and utilities often provide support for infrastructure development, reducing initial setup costs.
- Scalability: Data centers can be expanded or modified to meet growing demands, ensuring that investments remain viable over time.
- Strategic Partnerships: Proximity to industry giants allows for potential collaborations and partnerships, enhancing business opportunities.
Considerations for Investors
Regulatory Environment
Understanding local regulations is crucial. South Texas has a business-friendly climate, but due diligence is essential to navigate zoning laws and environmental regulations. Engaging with local authorities early in the planning process can streamline project development.
Infrastructure Needs
Investors must consider power availability, cooling solutions, and connectivity options. South Texas boasts robust infrastructure, but site-specific assessments are necessary. Renewable energy sources, such as wind and solar, are increasingly available, offering sustainable options for data center operations.
Security and Compliance
Data centers must adhere to strict security protocols to protect sensitive information. Compliance with industry standards and regulations ensures trust and reliability. Implementing advanced cybersecurity measures is vital in today’s data-centric world.
Success Stories in South Texas
Several major corporations have established data centers and related facilities in South Texas, capitalizing on the region’s advantages:
- Microsoft’s Data Center Investments: Microsoft has expanded its data center footprint in Texas, leveraging the state’s infrastructure and business-friendly environment.
- Google’s Infrastructure Development: Google has invested in subsea cables and network infrastructure that enhance connectivity in the region.
- Local Startups and Tech Firms: The presence of industry giants has spurred the growth of startups and tech firms, contributing to a vibrant ecosystem that supports data center operations.
The Future of Data Centers in South Texas
With the continuous growth of digital technologies and the substantial presence of companies like SpaceX, Amazon, and LNG enterprises, the demand for data centers is poised to increase. South Texas is well-positioned to be at the forefront of this expansion, offering investors a golden opportunity to be part of the digital transformation.
The region’s commitment to innovation, combined with significant corporate investments, ensures sustained growth. Advances in technologies such as 5G, edge computing, and artificial intelligence will further amplify the need for localized data processing and storage facilities.
Conclusion
Investing in data centers in South Texas is more than just a financial decision; it’s a strategic move to be part of a rapidly growing tech hub influenced by industry giants. The unique advantages of the region, coupled with the transformative impact of companies like SpaceX, Amazon, and leading LNG firms, make it an attractive destination for investors seeking solid returns and growth potential.
Ready to explore investment opportunities in South Texas’s data center market? Contact us today to learn how you can be at the forefront of the digital age.
For more information on investing in data centers and to stay updated on the latest trends in South Texas, subscribe to our newsletter.
investments •
October 28, 2024
McAllen’s Urban Vision: How Development Overhaul Could Transform City Living
McAllen is poised to redefine its urban landscape with an ambitious overhaul of its development regulations, making way for a city that’s denser, more walkable, and modern. The proposed Unified Development Code (UDC) aims to update zoning and planning regulations to support mixed-use developments, sustainable growth, and a more livable city core, transforming McAllen into a regional urban center.
What is the Unified Development Code?
The UDC will streamline zoning categories, making it simpler for developers to work within new, flexible zones that encourage mixed-use projects. Currently, McAllen’s zoning framework is complex, with designations that separate commercial, residential, and retail spaces. Under the new UDC, consolidated residential zones would allow developers to mix housing types—from apartments to townhomes—within a single zoning designation, paving the way for innovative, multi-functional developments.
Key Elements of the New Urban Framework
- Mixed-Use Zoning: The UDC’s highlight is its focus on mixed-use zoning, which means office, retail, and residential spaces could coexist in the same area. This approach will encourage businesses, restaurants, and shops to occupy lower floors while residential units sit above, creating a vibrant, live-work environment.
- Reduced Parking Requirements: One of the most progressive changes involves reducing the number of required parking spaces for buildings, an effort to boost pedestrian access. This shift not only saves space but also signals McAllen’s commitment to a greener, more walkable urban environment, reducing reliance on cars.
- Density and Population-Based Zoning: The city will reorganize zones based on population density, making it possible to design high-density areas that can support a bustling, urban lifestyle with amenities, green spaces, and public transportation options nearby.
- Enhanced Street Design and Infrastructure: Beyond zoning changes, the UDC proposes improvements to McAllen’s street and sidewalk designs, focusing on pedestrian-friendly pathways and better public spaces. These updates aim to create a welcoming environment for people on foot, enhancing safety and accessibility.
Why This Matters for Investors and Residents
McAllen’s growth has been steady, but these new regulations are setting the stage for a major evolution. For investors, the UDC could open up valuable opportunities, especially in new mixed-use zones that may see increased property values. Additionally, reduced parking requirements and multi-functional developments can maximize rental returns for property owners. Residents, too, will benefit from a more accessible, walkable city that offers convenient local services and a vibrant community.
Potential Impacts on McAllen’s Economy
The shift to a denser, mixed-use development style aims to attract more businesses, residents, and visitors, ultimately boosting McAllen’s local economy. With more spaces designed for small businesses, entrepreneurs could thrive, bringing diversity to McAllen’s commercial offerings. The changes are intended not only to modernize McAllen’s urban identity but also to maintain its appeal within the highly competitive Rio Grande Valley region.
Conclusion
McAllen’s push for urbanization through the UDC could represent a model for progressive city planning across the region. As the city embraces a more sustainable and accessible future, residents, developers, and investors have a unique opportunity to be part of McAllen’s urban evolution.
For a deeper dive into McAllen’s development plans and what they mean for the city’s future, explore the full article on MyRGV
