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CAPA Economic Pulse: RGV enters Q2 with solid economic fundamentals

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PALMVIEW, Texas - CAPA (Concrete, Asphalt, Pipe, Aggregates) has released its Rio Grande Valley Economic Pulse report for the second quarter of 2026.

Economist David Martinez Longoria, CAPA’s business development representative, coordinates the report. Martinez is a member of RioPlex.

In its executive summary, CAPA states:

“The Rio Grande Valley enters the second quarter of 2026 with solid economic fundamentals and a construction cycle gaining momentum across trade, housing, and industrial investment. In recent weeks, major cities concluded their annual State of the City addresses, reinforcing evidence of improving labor conditions, resilient cross‐border activity, and rising private investment. McAllen continues to anchor regional growth through sustained commercial and residential construction, while Edinburg and Brownsville drive housing expansion tied to population and workforce demand. Supported by strategic infrastructure projects and industrial growth at the Port of Brownsville, the Rioplex region continues to strengthen its position for balanced expansion and deeper integration into North American trade and global manufacturing networks.

The Economic Pulse report features the Port of Brownsville, McAllen, and the Mid-Valley in its “Relevant Economic News” section.

It says the Port of Brownsville “continues to lead industrial construction growth in the area.”

“BIH deepening of the ship channel construction is in line to be completed by Summer of 2026 (a total of $539.5M investment). This Public-Private partnership ensures continued growth for the area with projects such as Forza Steel ($80M capital investment) and Texas A&M Advanced Manufacturing Training Facility ($30M initial investment) among other well known projects like both Rio Grande and Texas LNG, America First Refining, and Karpowership.”

David Martinez Longoria
David Martinez Longoria

As for McAllen, it says the city of palms “reinforces its place as epicenter of the RGV’s expansion phase.”

“At its recent State of the City (in February), Mayor Javier Villalobos highlighted the City of Mcallen nearly $5 billion in taxable sales in 2025, a number that will only continue to grow this year. The city also reported 177 million visitors in 2025, reinforcing McAllen status as a preferred destination for tourists coming to the RGV. On other hand, the Anzalduas International Bridge Expansion ($80M investment) will directly benefit a population of nearly one million.”

With regard to the Mid-Valley, the report says cities in the area “continue to soar; plan and prepare for long term growth.”

“For its second consecutive year, Weslaco’s taxable sales surpassed $1 billion (at $1.06 for 2025) and all indicators show that this trend will only go upward in 2026. Additionally, the city will continue to invest in long term infrastructure projects such as the $26 million expansion at Mid Valley Airport, the flooding prevention facility at Pablo Pena Park, and multiple traffic improvement projects throughout the city. On other hand, the City of Harlingen is “building on momentum” with tax revenue sales surpassing $35 million and the city’s master plan infrastructure projects budget sitting at $230 million, with over a fourth of this amount already been secured by city officials.”

CAPA’s Economic Pulse also lists a slide with key RGV data. Here is it:

From CAPA's RGV Economic Pulse Q2, 2026.
From CAPA's RGV Economic Pulse Q2, 2026.

Editor’s Note: For more information, contact David Martinez Longoria at dmartinez@capatexas.com.

Image courtesy of RioPlex.
Image courtesy of RioPlex.