economy

The South Texas Region2022 Regional Report

South Texas Region Snapshot

Download Printable Snapshot (PDF)

About the 2022 Regional Reports

The 2022 regional reports use the latest available annual data from a variety of state and federal sources on or about Sept. 1, 2021. The data for the 2020 U.S. Census is as of Oct. 1, 2021. Sources include JobsEQ, REMI, Texas A&M Real Estate Center, Texas Department of Transportation, U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics and the Texas Comptroller of Public Accounts.

The 28-county South Texas region covers about 37,800 square miles in southern Texas, stretching along the Mexican border from Del Rio to Brownsville and up the Gulf Coast past Rockport to Aransas Pass and San Antonio Bay.

The South Texas region includes four metropolitan statistical areas (MSAs): the Brownsville-Harlingen MSA, comprising Cameron County; the Corpus Christi MSA, which includes Aransas, Nueces and San Patricio counties; the Laredo MSA, comprising Webb County; and the McAllen-Edinburg-Mission MSA, comprising Hidalgo County. The region’s other 22 counties are not associated with an MSA.

This report examines regional economic information and trends regarding population, personal income, jobs and wages, and education, as well as economic conditions unique to the South Texas region.

Demographics

Population

According to the 2020 Census, the South Texas region has a total population of more than 2.4 million, or 8.3 percent of the state’s total population.

The region’s population has grown by 6 percent (about 136,000 people) since the 2010 Census, compared to 15.9 percent growth statewide. An estimated 32 percent of the region’s population was concentrated in Hidalgo County (which includes the city of McAllen). Despite overall growth in the last 10 years, 20 of the 28 counties in the region lost population during that time.  

The median age in the South Texas region was 31.5 in 2019, younger than the state median age of 34.6 years. The Corpus Christi MSA’s median age (35.5 years) was older than the state while the Laredo MSA (28.8 years) was significantly younger. Kleberg (28.3 years) was the youngest county in the region and Aransas (50.6 years) was the oldest (Exhibit 1). An area’s age distribution can reveal can reveal specific challenges. A younger county may prioritize education and workforce development, for example, while an older county might face retirement issues and higher health care costs.

Note: Median age data for the counties are from the U.S. Census Bureau, American Community Survey, 2015 to 2019; region median age calculations are from JobsEQ.
Source: U.S. Census Bureau

---

Median Household Income and Income Distribution

The South Texas region had a median household income of $43,873 in 2019, up from $35,008 in 2010, a 25.3 percent increase. Median household income in Texas, by comparison, was $61,874 in 2019, up 24.6 percent from 2010.

The region’s income distribution finds proportionally fewer households in the top quintiles when compared to Texas as a whole (Exhibit 2).

Note: Figures may not sum due to rounding.
Source: Income distribution derived by JobsEQ using data from U.S. Census Bureau American Community Survey, 2015 to 2019.

---

Education

Occupational Earnings by Educational Attainment Requirements

A strong educational foundation provides a cornerstone for growth and competitiveness in the global economy. Postsecondary education delivers a good return on investments of time and tuition.

Data for 2021 indicate that occupations in the South Texas region requiring at least an associate degree or certificate paid an average of $5,900 more annually than those requiring less than a postsecondary education. Occupations requiring at least a bachelor’s degree paid an average of $34,400 more (Exhibit 3).

Note: Figures may not sum due to rounding.
Sources: JobsEQ; education requirement category assignments are from the U.S. Bureau of Labor Statistics

---

Regional Institutions of Higher Education

A postsecondary education also offers opportunity for greater job prospects, workplace advancement, higher wages and the development of a richer world view. The South Texas region offers a variety of options for higher educational achievement, including six universities, seven junior and community colleges and one health science school (Exhibit 4).

Source: Texas Higher Education Coordinating Board

---

Health Care

Availability of Hospital Services

Residents of the South Texas region have access to a variety of hospital services. General hospitals offer a comprehensive range of services and facilities for medical diagnoses and treatments, including surgical services. Special hospitals provide clinical laboratory facilities, diagnostic X-ray facilities, treatment facilities or other definitive medical treatments (Exhibit 5).

For a list of facilities offering services other than hospitals – such as rural health clinics, community mental health centers and birthing centers – visit Texas Health and Human Services.

Note: State psychiatric hospitals data as of February 2019
Source: Texas Department of Health and Human Services

---

Health Care Access

Access to health care facilities adds to the viability of a community. According to the U.S. Census Bureau, the share of Texans without health insurance — 18.4 percent in 2019 — was twice the national average of 9.2 percent.

In 2019, the rate of uninsured in the South Texas region ranged from a low of 13.6 percent in McMullen County to a high of 33.2 percent in Hidalgo County (the third highest in the state); the overall rate for the region was 24.9 percent, the highest among the state’s regions (Exhibit 6). (For additional information, see Uninsured Texans, Fiscal Notes, October 2020.)

Note: Uninsured population includes under 65 (ages 0-64) only.
Source: U.S. Census Bureau, Small Area Health Insurance Estimates

---

Regional Economy and Employment

In 2020, the South Texas region had a gross domestic product (GDP) of $84.8 billion, about 4.8 percent of Texas’ statewide GDP of $1.8 trillion. Between 2010 and 2020, GDP rose by an average annual rate of 2.3 percent, less than the statewide average annual rate of 3.6 percent. In 2020, GDP fell from the previous year by 8.9 percent, more than the state’s GDP fall of 4.7 percent. (GDP values not adjusted for inflation.) Preliminary data for the first two quarters of 2021, however, suggest a significant economic rebound in many industries and regions.

Regional Employment Levels

Of the 880,052 people employed in the South Texas region in 2020, 82.8 percent live in one of the area’s four MSAs. Between 2010 and 2020, regional employment rose by 7.2 percent, a slower pace than in the state (17.1 percent) and the U.S. (7.8 percent). The McAllen-Edinburg-Mission MSA is the largest with 32.5 percent of the region’s workforce; during the past 10 years, employment in that MSA has grown by almost 14 percent (Exhibit 7).

Source: JobsEQ using data from the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

---

Regional Industries

In the five-year period between 2015 and 2020, jobs in the South Texas region decreased by 1.5 percent, or about 13,700 jobs. During this period, by comparison, jobs rose by 3.3 percent in Texas and fell by 0.5 percent in the U.S.

The South Texas region’s largest industries by employment are restaurants, education and health care. Public safety and trucking industries also employ many workers in the region (Exhibit 8).

Source: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

---

Jobs in family and health care services industries were the leaders in total regional gains between 2015 and 2020 (Exhibit 9).

Source: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

---

Using the location quotient (LQ) — a measure of an industry’s relative size in a region compared to its average size in the nation — health care services, petroleum and coal products manufacturing and freight transportation are among the industries that stand out as highly concentrated and unique to the regional economy. An LQ of 1.25 or higher indicates that the region has a comparative advantage in the industry (Exhibit 10).

Source: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

---

Occupations

The South Texas region has large numbers of people in labor, fast food and trucking occupations. Home health and personal care occupations have seen particularly high growth in the last five years and have a high LQ in the region (Exhibit 11).

Source: JobsEQ using data provided by the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages

---

South Texas Regional Infrastructure

Housing Affordability

The Texas Housing Affordability Index (THAI) from the Texas A&M Real Estate Center measures the ability of a household earning the median family income to purchase a median-priced home. An index ratio greater than 1 means that the median family income is more than the income required to purchase the median home in a specific area. The calculations for the index assume that consumers are making a down payment of 20 percent and have a family income that is 25 percent of the price of the median home.^[1]

According to the THAI, a median-income family in all three MSAs would have a sufficient income to afford the median home (Exhibit 12). Home prices in these areas are slightly less affordable than in the state as a whole.

Source: Texas A&M Real Estate Center

---

U.S. Military Installation Impact

Texas has 14 U.S. military installations within its borders. In 2019, these bases directly employed more than 226,000 and supported nearly 634,000 jobs in all. They also contributed an estimated $75.3 billion annually to the state’s GDP. The four military installations within the South Texas region — Corpus Christi Army Depot, Naval Air Station Corpus Christi, Naval Air Station Kingsville and Laughlin Air Force Base — had a significant positive impact on the Texas economy, supporting an estimated 41,000 jobs and contributing about $4.6 billion to the state’s GDP in 2019 (Exhibit 13). Learn more about the impact of U.S. military installations on the state’s economy.

Sources: Texas Comptroller of Public Accounts, Texas Military Preparedness Commission and REMI

---

Regional Transportation

Metropolitan planning organizations (MPOs) are federally mandated policymaking organizations created to coordinate transportation planning in urbanized areas. The Corpus Christi, Laredo and Rio Grande Valley MPOs coordinate transportation planning in the South Texas region. Roadways within the region make up parts of the Corpus Christi, Laredo, Pharr, San Angelo and San Antonio Texas Department of Transportation (TxDOT) districts.

Road miles and vehicle miles traveled for the region’s roadway network, as of 2019, are listed by road type (Exhibit 14).

Source: Texas Department of Transportation

---

Transit authorities and transit districts are governmental entities or companies that coordinate public transit in an area. The region is served by the Corpus Christi Regional Transportation Authority and urban transit districts in Brownsville, Harlingen, Laredo and McAllen, while rural transit is provided by eight services (Exhibit 15).

Source: Texas Department of Transportation

---

The state of Texas has 27 commercial service airports offering passenger service. Six of those commercial service airports are in the South Texas region (Exhibit 16).

Source: Federal Aviation Administration

---

Amtrak interstate passenger rail service runs three routes through the state (Texas Eagle, Heartland Flyer and Sunset Limited). Texans can get direct service to Chicago, Los Angeles, New Orleans and Oklahoma City plus numerous stops along the way as well as connections to the rest of the country. Amtrak’s station stop in the South Texas region is in the city of Del Rio.

Ports of entry within Texas account for 17 percent of all U.S. international trade, and each region contributes to international trade in direct and indirect ways. The South Texas region has 10 direct trade official ports of entry (Exhibit 17).

Source: U.S. Census Bureau, USA Trade Online, Port Level Data for 2020

---

Region vs. Texas

If the South Texas region were a state, it would be the 38th largest in terms of area and first in terms of population under 18 years of age (Exhibit 18). For more information on how Texas and its distinct, diverse regions compare to the U.S. and other states, visit TexIndex.

Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics and U.S. Bureau of Economic Analysis

---

South Texas Region Economic Development Highlights

• Tourism plays a large role in the economic activity of the South Texas region, with visitors both passing through or long-term vacations. Every winter, about 100,000 American and Canadian visitors stay in the Rio Grande Valley, contributing around $700 million to the local economy. The ‘Winter Texan’ season runs from November to March, peaking in January. ^[2]
• Nueces County hosts the annual Shrimporee festival in June. This 74-year-old event attracts 35,000 visitors who enjoy the carnival, games, contests, a parade and, of course, shrimp. Not including event revenue, this one weekend in June accounts for nearly $3.4 million dollars for the region.^[3]
• Bird enthusiasts can visit the Rockport-Fulton area for the annual HummerBird Celebration in September. Travelers add $1 million to the economy during the fall migration season.^[4]
• A Texas Enterprise Fund (TEF) grant of $5.9 million was extended to Buffalo LLC, a subsidiary of Steel Dynamics Inc., which announced a new steel mill manufacturing facility in Sinton, Texas. The new facility will create more than 590 new jobs and generate more than $1.9 billion in capital investment.^[5]
• San Roman Wind LLC proposed a renewable energy project using wind turbines in Cameron County. The project was constructed across two school districts — Los Fresnos Consolidated Independent School District (CISD) and Point Isabel Independent School District (ISD) — both of which stand to gain from the $86.2 million proposed total investment. The project, which began in the spring of 2015, will have a capacity of up to 105 megawatts (MW), made up of 35 to 40 wind turbines with a generating capacity of 2 to 3 MW each.^[6]
• A renewable energy project from Las Lomas Wind Energy LLC proposed a wind farm in Zapata County of 44 to 80 wind turbines with a generating capacity of 200 MW. Located on 32,000 acres in Zapata ISD, the district stands to benefit from the $182 million proposed total investment.^[7]
• Ponte Alto Windpower LLC proposed a utility-scale wind energy project in La Villa ISD in Hidalgo County. This is part of a larger project that also crosses into Monte Alto ISD, Lasara ISD and Raymondville ISD. The wind farm will have an estimated capacity of 240 MW and nearly 60 wind turbines. The proposed total investment amounts to $52 million in the area.^[8]

---

Endnotes

Links are correct at the time of publication. The Comptroller's office is not responsible for external websites.

1. Texas A&M Real Estate Research Center, , “Texas Housing Affordability Index: Data Series Description,” (Last visited March 22, 2022).↳
2. Welcome Home Rio Grande Valley,(Last visited March 22, 2022).↳
3. Aransas Pass Chamber of Commerce, “Shrimporee,” (Last visited March 22, 2022).↳
4. Rockport-Fulton Chamber of Commerce“What is the Hummingbird Celebration?” (Last visited March 22, 2022).↳
5. Email from Lauren Vay, Marketing & Communications Specialist, Economic Development & Tourism, Office of Governor Greg Abbott, December 3, 2021; and Office of the Texas Governor, Governor Abbott Announces Buffalo, LLC Facility in Sinton,” (Last visited March 22, 2022).↳
6. Texas Comptroller of Public Accounts, Chapter 313 School Value Limitation, “Los Fresnos Cisd No. 1051, San Roman Wind I, LLC,” (Last visited May 2, 2022).↳
7. Texas Comptroller of Public Accounts, Chapter 313 School Value Limitation, “Zapata County ISD No. 1358, Las Lomas Wind Energy, LLC,” (Last visited May 2, 2022).↳
8. Texas Comptroller of Public Accounts, Chapter 313 School Value Limitation, “La Villa ISD No. 1423, Ponte Alto Windpower, LLC,” (Last visited May 2, 2022).↳

---

Questions?

If you have any questions or concerns regarding the material on this page, please contact the Comptroller’s Data Analysis and Transparency Division.