Edinburg, Brownsville outpace McAllen in sales growth over past decade

Brownsville and Edinburg posted the Rio Grande Valley’s strongest economic gains from 2015 to 2024, outpacing longtime retail leader McAllen, according to sales tax data. Smaller cities including Donna, La Feria and Los Fresnos posted triple-digit growth, while Raymondville and Roma lagged behind.

The numbers track gross sales, taxable sales, and the number of businesses reporting taxable activity — called outlets — over the nine-year span. They highlight which cities are capturing more consumer spending, where new businesses are opening, and which communities are struggling to keep pace with the region’s rapid economic shifts.

Brownsville closes in on McAllen

McAllen remains the Valley’s largest market, with $10.2 billion in gross sales and nearly $4 billion in taxable sales in 2024. That represents a 42% increase in gross and a 50% increase in taxable sales since 2015. The city also added roughly 25% more outlets, meaning more businesses were actively reporting sales.

Brownsville, however, grew much faster. Gross sales jumped 75.5% to $6.5 billion, and taxable sales increased 50.6% to $2.2 billion. The city added nearly 30% more outlets. Analysts say the surge reflects retail growth as well as manufacturing and trade tied to international bridges and the Port of Brownsville.

Edinburg doubles down

Edinburg recorded the steepest gains among the Valley’s largest cities. Gross sales climbed 82% to $3.2 billion, and taxable sales rose 72.5% to $1.3 billion. The number of outlets grew nearly 48%, showing both more businesses and more economic activity.

UTRGV’s expansion, the city’s medical district, and new subdivisions have helped drive that growth. Edinburg is no longer a secondary market behind McAllen.

Smaller cities lead in percentage growth

Several mid-sized and smaller Valley cities posted gains that far outpaced the region’s largest hubs.

• Donna more than doubled its gross sales to $940 million, with taxable sales soaring 171% to $292 million. Outlets increased 28%.
  
• La Feria posted the largest percentage jump, with gross sales climbing 232% to $307 million and outlets growing 44%.
  
• Los Fresnos saw gross sales climb 153% to $213 million, while outlets grew 82%, the highest rate in the Valley.
  

Other strong performers include San Juan, Mission and Weslaco, which each posted taxable sales growth of more than 60%.

Harlingen, Pharr and Weslaco keep pace

Harlingen, Pharr and Weslaco saw steady growth but trailed Brownsville and Edinburg. Harlingen’s gross sales rose 37.6% to $3 billion, while taxable sales grew 48%. Pharr recorded 59.7% growth in gross sales and 77.4% in taxable sales. Weslaco posted a 42.7% increase in gross and a 63.5% increase in taxable sales.

Cities lagging behind

Raymondville was the only city where taxable sales fell, down 2% since 2015. Gross sales rose 25%, and outlets grew 27%, suggesting more businesses opened but consumer spending remained stagnant.

Roma’s gross sales fell 19% to $106 million, while taxable sales rose 30%. Rio Hondo contracted slightly in gross sales, down 2.2%, though taxable sales grew 45%.

What it means

The data highlights an uneven pattern of growth across the Valley. Established hubs like McAllen and Harlingen continue to grow, but at slower rates than Brownsville and Edinburg. Smaller markets such as Donna, La Feria, and Los Fresnos are capturing a greater share of consumer spending as subdivisions and highway corridors expand retail.

The numbers also show where new businesses are opening, giving a clearer picture of economic momentum. Lagging cities like Raymondville and Roma risk falling further behind if they cannot attract or retain businesses.

For local governments, the gains mean higher sales tax revenues to fund infrastructure and services. For businesses, the data points to new opportunities in fast-growing markets outside the Valley’s traditional centers.