To fully grasp the culture, economy and real estate markets of the Rio Grande Valley, you have to explore the imposing background of this incredible region. It is defined by a turbulent flow of rapid changes in national boundaries, historical conflicts and technological advancements. All of these important factors operated to make the region the hotbed of investment opportunities it is today.
First, let’s take a sweeping look at the rich history of the Rio Grande valley: where McAllen is located . The Rio Grande Valley stands out as a diverse geographical, historical, economic and cultural region in South Texas. The “RGV” is located on the southernmost tip of Texas, right on the U.S.-Mexican border. It also embraces the Gulf Coast shores; a semi-tropical environment defined by beautiful palm trees and endless orchards of aromatic citrus trees.
Over the last 150 years, the Rio Grande Valley has seen sweeping historical changes and dramatic shifts in population, wealth distribution, and cultural influence. It has become the epicenter of stunning growth in all levels of the real estate markets and it stands out as one of the fastest growing regions in Texas and the United States.
What Texans call “the Valley” centers on Starr, Cameron, Hidalgo, and Willacy counties in the lower Rio Grande region and extends from the mouth of the Rio Grande up the river for a distance of close to 100 miles. McAllen is located in Hidalgo county, and as the major city in the MSA, will become the highlight and focus of this article.
The lower Rio Grande contains excellent agricultural soil, because it is a true delta and possesses rich alluvial soil perfect for many crops. Regardless of this potential, the Valley was little more than barren Texas rangeland for 100’s of years. It remained the home of prairie dogs, rattlesnakes, and tumble weeds – only inhabited by Native American Indian tribes.
When the Spanish first arrived in the area around 1750, they settled on the right bank of the Rio Grande and divided the area north of the river into great cattle-ranch land grants. (Much like the huge Spanish Rancheros of Alta California)
An American presence arrived in the region with the invasion of General Zachary Taylor and the United States Army during the Mexican War (1846). Texas officially became the 28th state in the union on Dec. 29, 1845. This act was considered a provocation and triggered a war with Mexico. The Battle of Palo Alto in 1846 is the first major battle of the two-year Mexican War. The town of Brownsville, which sprang up around Fort Brown, remained practically the only settlement of any importance in the Valley for over half a century.
Two major factors shaped the future of the region: the introduction of irrigation on a vast scale in 1898 and the construction of the railroad in 1904. In Hidalgo County, land that had been selling for twenty-five cents an acre in 1903, (only one the year before the St. Louis, Brownsville and Mexico Railway arrived), had exploded up to fifty dollars an acre in 1906 and for as much as $300 an acre by 1910.
Water and transportation triggered a large-scale influx of U.S. farmers from the Midwest in the 1910’s-20’s. To meet the labor demands, a growing flood of Mexican immigration followed during the same period, leading to stunning population growth in Rio Grande Valley counties. Hidalgo County alone climbed from 6,534 in 1900 to just over 77,000 in 1930. By 1930 the population of the four lower Rio Grande valley counties topped 176,000.
McAllen and many of the surrounding towns became a hodge-podge mix of modest rural homes, processing plants, and small businesses. Soon the Rio Grande Valley was dotted with top-producing fields of tomatoes, cabbage, carrots, potatoes, beets, corn, green beans, onions, and much more! Raising to prominence was a flourishing citrus fruit industry – including the well-known ruby red grapefruit, lemons, plus prize-winning Navel and Valencia oranges.
The Rio Grande Valley also began to earn a stellar reputation as a “go-to” resort center in the 1940s. Because of a warm, mild year-round climate, an increasing number of vacationers and “Snow Birds” flocked to the area during the winter months. McAllen, Brownsville, and other Valley communities have become the winter home of choice for many from the Northern U.S.A and Canada. Excellent Sport Fishing-freshwater, saltwater, and deep-sea fishing is still a favorite pastime.
Much like many other areas along the United States-Mexico border, the Rio Grande Valley has been aided economically from the development of maquiladoras. These diverse industrial plants were first introduced by the Mexican government in the 1960s to encourage economic expansion on the border. They have attracted a variety of U.S. corporations as low-wage assembly and manufacturing centers.
The region has also benefited from relaxed trade restrictions between Mexico and the United States. As a result, a robust warehouse and transportation center has blossomed. In the 1990s, the North American Free Trade Agreement began to multiply employment opportunities further in the region. A complementary rise in the local standard of living has also occurred on a steady climb.
The Rio Grande Valley continues to be the center of citrus production and the most notable area of vegetable production in the state of Texas. In 1995, Hidalgo County led the state in acres of vegetables harvested. McAllen and the rest of Hidalgo county became the center of abundant citrus production. Texas grapefruit, including the well-known ruby red, and navel and Valencia oranges were the most important citrus products.
The Lower Rio Grande Valley of Texas defines the easternmost geographic point of the border between the United States and Mexico. Chad Richardson, a former historian at the University of Texas-Pan American states that, “international borders often create unusual situations. Few situations are more unusual and interesting that the one on the southern end of the Texas-Mexico border.
The Rio Grande Valley is seeped in own rich traditions. It possesses a culture, style, foods, language, and music all of its own. Even its economic development has taken its own distinct paths.
Tourist attractions include fascinating museums and art galleries, top-tier amusement parks, National and State Parks, historical landmarks, exciting sporting events, and festivals reflecting the unique local culture. Just a few minutes away from McAllen is the Mexico border town of Reynosa. Reynosa is located just across the Rio Grande from McAllen and Hidalgo County, Texas, and has also been a top-3 growth city in Mexico for over ten consecutive years.
The city’s oil refineries and petrochemical plants serve the nearby fields, and pipelines carry natural gas to the U.S. and Mexico. It also has cotton mills, distilleries, sawmills, brick plants, and a host of other industries. Reynosa is a port of entry with a lively tourist district filled with superb restaurants and shops featuring one-of-a-kind hand-blown glass, jewelry, and ceramics creations.
It is evident explosive economic growth has occurred on both sides of the border in this remarkable dual region of Texas and Mexico.
In the next article, we’ll explore the current and future potential of McAllen and the surrounding area for a positive business environment, the good life (Texas style) and commercial real estate opportunities.