REC: Texas-Mexico border economy healthy

​​​​COLLEGE STATION – Low unemployment levels and steady nonresidential construction in August indicated a healthy border economy, according to the Real Estate Center. 

The lack of wage growth, however, revealed additional slack in the labor market. 

Despite stagnant wages and slower job growth, housing demand was strong, albeit in the lower price ranges. 

Border housing sales dipped 2​ percent in August ​after reaching record levels in July but maintained an upward trend. El Paso sales through Multiple Listing Services (MLS) held at an all-time high of 732, accounting for more than half of total border activity. Sales flattened in Laredo and contracted 6.8 percent year to date in McAllen. In Brownsville, sales dropped 7.6 percent in August but have trended upward since the start of the year as activity strengthened in the $300,000-$400,000 range.

Trade values balanced around record highs, and the outlook improved following the announcement of the U.S.-Mexico-Canada Trade Agreement. The unofficial pact calms concerns of supply-chain disruptions and overall operating uncertainty.

For more, read the latest Texas Border Economy​ ​report by Center Chief Economist Dr. Jim Gaines, Research Economist Dr. Luis Torres, Research Associate Wesley Miller, and Research Intern Paige Woodson. ​​​​