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
Between 2020 and 2025, McAllen experienced an average sales tax allocation growth rate of 9%. This high rate was driven to some extent by the re-opening after the COVID lockdowns. The January 2020-to-January 2025 growth rate averaged 8.4%. Although 2025 showed a 1.75% decline, January 2025-to-January 2026 showed a 5% percentage increase in sales tax allocations. According to data from the Texas Comptroller's Office, McAllen ranked third in per capita sales tax behind only Round Rock and Sugarland in 2025. The per capita sales tax was slightly over $672 dollars. These data points indicate that McAllen weathered the tariff policy volatility and is on track to show strong growth in 2026.
9%
Average sales tax growth rate (2020–2025)
5%
Sales tax increase Jan 2025–Jan 2026
$672
Per capita sales tax (2025) — 3rd in Texas
Hotel Occupancy & Building Permits
Hotel occupancy between 2020 and 2025 averaged 67% and an average daily rate of approximately $99. The profit on activity averaged $66.67 with significant capacity remaining. Overall average revenue from hotel occupancy per annum for the period 2020 to 2025 was slightly over $8 million. Building permits averaged 2,350 per annum between 2020 and 2025. The average value of permits during the same period was nearly $371 million. The dollar value of permits issued in 2025 stands out because of its significant increase reaching over $500 million. This dollar amount exceeds the 2022 value, the second highest in the 2020–2025 period by 36%. This is significant because the total number of permits issued in 2025 was lower than 2022, meaning that the dollar value of construction projects is growing and could be associated with higher value and larger projects. These figures require adjustments for inflation.
67%
Avg hotel occupancy (2020–2025)
$99
Average daily hotel rate
2,350
Avg building permits/year
$500M+
Permit value in 2025 — record high
