Affordable homes, rising costs: Why the Valley’s housing market is at a crossroads

In a market once defined by affordability and steady growth, the Rio Grande Valley’s housing landscape is changing — and not always in ways that benefit buyers or builders.

In a recent on-camera interview, Nacho Pecina III, broker and owner of Zapphire Real Estate Group and incoming 2026 president of the Greater McAllen Association of Realtors, walked through a newly constructed home in Pharr priced at $195,000.

While that price point would have been unremarkable a decade ago, today it stands out for being one of the few new homes under $200,000 close to the expressway — even with efficient design elements like fully insulated walls and soundproofing. Pecina said market conditions — especially escalating costs of land, labor, and materials — are squeezing builders and buyers alike.

“Ten years ago, construction costs were around $110–$120 a square foot,” Pecina said. “Today we’re around $160 per square foot. Land, materials, and labor — all of it has gone up.”