How the Rio Grande Valley rallies for growth

August 29, 2024

Dallas Fed President Lorie Logan's 360° Listening Tour is taking her to communities all around the Eleventh Federal Reserve District. The tour is helping deepen her understanding of the region’s people and economy by adding color and perspective that go beyond official statistics.

Tackling affordable housing and skilled labor shortages at the same time

As the Rio Grande Valley flourishes, communities in the region are working to keep up with demand for affordable housing and skilled workers. On a visit to the region, President Logan met with one community group that has found a way to do both. Come Dream Come Build is a nonprofit that builds affordable modular homes and offers financing to prospective buyers.

Building the homes locally creates jobs and cuts the cost of moving them to buyers’ properties. The nonprofit’s financing program includes client education, helping families build equity through homeownership. Clients also have a say in the design and interior finishes of the homes they buy, which helps build equity and empowerment.

One of the nonprofit’s leaders said: “Having a level of choice, from the design to the countertop style, is an underrated asset in affordable housing.”

Building education, skills and confidence

Come Dream Come Build established cdcb YouthBuild, a local operation of a national nonprofit that places young people in construction jobs as they earn GEDs or professional certifications. President Logan met this year’s YouthBuild class while visiting a build site.

One student shared her story of dropping out of high school and finding herself with no immediate prospects and little hope for the future. Joining YouthBuild changed her life. She gained confidence and got motivated to earn her GED.

"I was homeless and not sure what I was going to do. I found YouthBuild, and they helped me get my education while I learned new skills,” she told President Logan and Dallas Fed staff. “YouthBuild helped me find my purpose, and I'm excited to say I'm getting to go to college.”

Rapid growth brings excitement and challenges

The Rio Grande Valley is growing rapidly. The arrival of SpaceX, plans to build a liquefied natural gas terminal and increasing manufacturing and trade opportunities with Mexico have spurred an influx of skilled jobs and development opportunities. During her recent visit, President Logan joined community and business leaders to hear about the excitement and challenges accompanying this growth and how the region is planning for the near and distant future.

RGV leaders told President Logan they are collaborating on economic development, presenting a united front to attract investment. The region stretches about 100 miles upriver from the mouth of the Rio Grande and encompasses four counties and two Census Bureau metropolitan statistical areas: Brownsville–Harlingen–Raymondville and McAllen–Edinburg–Mission. In the past, leaders said, cities in the region marketed themselves individually rather than as a region. But the Valley is now home to major industries that affect the entire region, and leaders said they anticipate more growth as companies move manufacturing operations to Mexico to keep supply chains closer to the U.S.

Leaders told President Logan they are considering rebranding the area as the Rioplex to attract more investment and market the region as a whole,

Listen to a Dallas Fed interview with Joe Quiroga, president of Texas National Bank, about growth in Brownsville.

Community leaders must collaborate on growing pains

In the past, access to capital might have been the bottleneck slowing growth in the Valley. But now, with plenty of investment in the region, leaders told President Logan that skilled labor and a transient population have become the pinch points.

Business leaders said collaborative, public-private partnerships could help match the skills taught at regional educational institutions to employers’ demands. One leader said: “Our goal should not just be getting students a degree but connecting them to jobs in our region.”

Another participant said it’s also important to stoke interest among young people in high-demand jobs. “We need to find ways to market these jobs to our students in our community … and find ways for everyone to participate in the economy.”

Investing in homegrown talent is important

Juliet Garcia, former president of University of Texas at Brownsville, told President Logan that the region has plenty of homegrown talent. The key is guiding young people to study subjects that can translate into economic growth for the region.

Garcia, the first Hispanic woman to lead a U.S. university and a Presidential Medal of Freedom honoree, spearheaded the creation of UT Brownsville and graduated over 40,000 students during her tenure as president.

She then helped envision a new higher education model for the region by consolidating UT Brownsville and UT Pan American in Edinburg to create UT Rio Grande Valley, which has campuses in Brownsville, Edinburg, Harlingen, South Padre Island and Rio Grande City. Garcia said investing in workforce development is equally as important as financial investment in the region.

“Human capital is just as important as regular capital,” she said.

Join Dallas Fed economists at UTRGV in October for the Vistas from Texas conference highlighting the role of Texas and the border region in the global economy.