McAllen Annual Economic Review
by Belinda Román, Ph.D. · Associate Professor of Economics
Belinda Román, Ph.D.
Associate Professor of Economics
Belinda Román, Ph.D., is an Associate Professor of Economics at St. Mary's University. Before joining St. Mary's, Román was Professor of Economics for Palo Alto College in San Antonio.
Dr. Román frequently consults on policy and economic questions presented by various departments within the City of McAllen that are specific to the city's position on the U.S.-Mexico Border. She has collaborated on work with the Brookings Institute-Global Cities Initiative and is presently working with the University of Texas Health, School of Public Health. Her most recent research focuses on the impact of Type II Diabetes on Workforce Participation, funded by the National Science Foundation.
Sales Tax Allocations, Hotel Revenues, & International Commerce
Both sales tax allocations and hotel revenue for Q2 are up over 11 percent compared to Q2 of 2025. In fact, for the first 7 months of 2026, sales tax allocations are up 7.2% and hotel revenues were up 9%. This demonstrates that McAllen is still benefiting from cross-border retail sales and hospitality. These numbers are also supported by the 13.7% increase in northbound personal vehicles crossing at the international bridge. The good news is that in these activities, McAllen has not seen a negative impact from recent tariff volatility and a strengthening peso may be driving more Mexican nationals to shop in the city.
11%+
Sales tax & hotel revenue growth (Q2 2026 vs Q2 2025)
7.2%
Sales tax allocations increase (YTD, first 7 months of 2026)
9%
Hotel revenue increase (YTD, first 7 months of 2026)
13.7%
Increase in northbound vehicle crossings at the international bridge
Building Permits
Overall, permitting was up 21% due to a positive upswing in multifamily and remodeling permits. More importantly, the total dollar value year-to-date of permits was up $251 million thanks to some very large projects. The data show that commercial and remodeling permits were up over 253% and new multi-family permits up well over 1,000%. This assessment is based on absolute dollar values.
21%
Overall increase in permitting activity
$251M
Increase in total dollar value of permits (YTD)
253%+
Increase in commercial & remodeling permits
1,000%+
Increase in new multi-family permits
