In Cameron County, home values have surged more than twofold over the last six years, with property tax bills following suit, according to findings from the Texas Real Estate Research Center at Texas A&M University.
The establishment of SpaceX in 2014 has significantly accelerated economic growth in the region, contributing to rising property values. With the company’s expansion and the growth of other industries in the Brownsville area, experts anticipate further increases in home prices.
For long-time residents of Brownsville, the county’s largest city, the escalation in property values could result in higher tax bills, potentially forcing some out of their homes, warns a local real estate professional.
City Budget and Tax Rates
Like many Texas cities, Brownsville is in the process of finalizing its budget for the upcoming 2026-2027 fiscal year, which starts in October. This budgeting process includes determining the property tax rate, a decision that could lead to either tax increases or cuts for homeowners.
The situation in Brownsville exemplifies the challenges faced by other Texas cities regarding how to manage rising property values amid a wave of economic development in a historically low-wage area.
Significant Growth in Property Values
Recent data reveals that the rise in home values in Cameron County outstrips the state average. From 2019 to 2025, the median property value in Cameron County soared from $75,800 to $171,900, marking a 127% increase, while Texas’s median values rose by 65% during the same period.
Property tax bills have also seen a significant rise, with the median tax bill in Cameron County jumping by over 57%, from $1,740 to $2,740, unadjusted for inflation. In contrast, the median tax bill across Texas increased by 42%, from $3,900 to $5,550.
This growth is projected to generate an additional $3 million in property tax revenue for Brownsville, even as the city proposes to keep the tax rate steady at 60 cents per $100 in property valuation.
Local real estate broker Bob Torres has expressed concern, noting that many clients are contemplating selling their homes due to the rising property taxes. “This is the whole big dilemma — who is SpaceX benefiting dollar-wise and who is it affecting negatively dollar-wise?” he remarked.
SpaceX’s Impact on Local Economy
The recent initial public offering of SpaceX has resulted in significant wealth creation among its employees, further driving up home values in Cameron County, which employs around 4,300 SpaceX workers.
While SpaceX expands its operations in Texas, including a planned semiconductor fabrication plant in Grimes County expected to create 3,000 jobs, many Brownsville residents remain disconnected from the financial benefits of the company and now face potential increases in property taxes and interest rates.
<pTorres himself witnessed a dramatic increase in his home’s value, rising from about $200,000 in 2022 to approximately $700,000 this year. This added financial pressure could heavily impact homeowners, particularly retirees and those on fixed incomes.
City Officials’ Perspectives
Brownsville City Manager Alan Guard acknowledged that not all areas are experiencing rising home values, attributing some of the increases to developments like Madeira, a community aimed at attracting employees from SpaceX and other corporate entities. However, he noted that certain neighborhoods, particularly historic and affordable areas, are likely to see stable property values.
Economist Lynn D. Krebs pointed out that the inflation in median home prices could be influenced by the influx of new, more expensive housing, suggesting that while median values have escalated, not every homeowner’s property has appreciated at the same pace.
Under the proposed tax rate, typical homeowners may still face an average property tax increase of about 10%.
Strategies for Homeowners
For those worried about escalating tax bills, Torres recommends that homeowners be proactive in contesting their property values during annual assessments. “Be ready,” he advised. “And you have to do your homework.”
Government’s Role in Mitigating Tax Burdens
A potential remedy for residents feeling the strain of higher taxes lies with local government, which could adopt a no-new revenue tax rate. This rate would allow the city to collect the same amount of revenue from property taxes as the previous year, potentially leading to tax relief for some homeowners.
However, Guard explained that as the city grows, there are increasing demands for services, and local governments face constraints on how they can fund these services. “We don’t control it. We don’t control it at all,” he stated.
Over the past decade, city employee salaries have risen by approximately 36%, while the consumer price index for urban wage earners has increased by around 40%. Rising costs in healthcare, fuel, and equipment further complicate the city’s financial picture.
Future Housing Developments
As demand for housing continues to grow, local regulations governing new construction are under scrutiny. Zoning ordinances can limit residential neighborhoods to single homes per larger parcels, and design requirements can elevate the overall cost of housing.
City officials are actively working on a housing master plan, which will involve community input on desired housing developments. Discussions with companies like SpaceX and Saronic Technologies, which plans to build a significant shipyard in Brownsville, are also underway to address housing needs for incoming employees.
Guard emphasized the importance of ensuring that working individuals can afford to live in Brownsville as the city plans for its future. “If you can work in Brownsville, you need to be able to afford to live in Brownsville,” he affirmed.
