Page 415 - Budget FY 2022-2023 - Update

Adopted Budget 2023 City of McAllen, Texas

permit valuation in the four cities was down another 1.5% compared to last year.
New single-family housing construction permits are down compared to record totals in 2021,
posting declines of 16% for the year compared to record totals for those time periods last year.
Existing home sales also set records in 2021, and continued to do so in the rst ve months of 2022.
The August monthly sales total was lower, however, o by 4% compared to a record August 2021.
The nominal average price of those sales was once again up sharply at 10% in August
year-over-year. An increase in value of construction along with a slowdown of new home sales and
new home permits re ect an adjustment of the real estate industry. The slowdown can be attribut-
ed to in ation and the consequential high prices of materials alongside labor shortages. Additional-
ly, rising interests’ rates generally deaccelerate investments, mainly on real estate.
An estimated 14,200 jobs were added over the 12 months ending in August for a year-over-year
growth rate of an impressive 5.3%. Employment fully recovered its COVID-19 losses in August 2021
and has been at record and climbing levels since then.
Key Points (continued)
The McAllen city unemployment rate decreased from July to August, setting up a good trend for
the holiday season.
Even with a few negative indicators, the MEI grew a whopping 8% year-over-year, the McAllen
metro area economy remains an economy clearly in expansion through midyear 2022.
The likelihood of a recession in the near future is a much more open question and one we do not
yet know the answer to. Yet, the border towns, especially McAllen is one of the most resilient
economies in the US and its almost recession-proof. If a recession happens to hit at a national level,
McAllen will not su er from it for at least 2-3 years.

*McAllen, Edinburg, Mission, and Pharr

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