Zip Code 78504

McAllen, TXHidalgo County

Real Estate Market Analysis

Q3 2025 Report
$259,000 (as of June 2025, nearby 78573; 78504 is similar)
Median Home Value
~65,000 (2025 estimate)
Population
$59,000
Median Income
B+ (2025)
School District Rating

Market Statistics

Property Values

$259,000 (as of June 2025, nearby 78573; 78504 is similar)
Median Home Value
$1,400/mo (estimate, 2025)
Median Rent
$140 (estimate, 2025)
Price per Sq Ft

Market Performance

Home Appreciation+4.9% YoY (2025, nearby 78573)
Market VelocityInventory up 15.2% MoM in McAllen; buyer's market conditions
Foreclosure RateLow, consistent with regional averages

Area Information

Area Sizeapprox. 20 sq mi
CountyHidalgo
Primary CityMcAllen

Housing Profile

Housing Statistics

Total Housing Units~12,000 (estimate, 2025)
Owner Occupied62%
Rental Properties38%
Vacant Units6%
New ConstructionModerate, with steady permit activity in 2025

Housing Types

Single-family homesTownhomesApartments

Demographics

~65,000 (2025 estimate)
Population
32
Median Age
$59,000
Median Income
94%
Employment Rate
High school diploma or higher: 80%; Bachelor's degree or higher: 25%
Education Levels
Predominantly families with children, some retirees
Family Composition

Education Quality

School District Performance

B+ (2025)
District Rating
School DistrictMcAllen ISD
Test ScoresAbove state average in math and reading
Graduation Rates92%

Schools in Area

  • McAllen High School
  • Cathey Middle School
  • Gonzalez Elementary

Economic Factors

Employment & Business

Job Growth2.1% (2025)
Unemployment Rate6.0% (2025)
Business EnvironmentGrowing, with emphasis on healthcare, retail, and education
Commercial ActivityActive retail and healthcare sectors

Major Employers

  • McAllen ISD
  • South Texas Health System
  • City of McAllen
  • Retail (La Plaza Mall)

Infrastructure & Quality of Life

Infrastructure

Transportation Access

  • US-281
  • Expressway 83
  • Metro McAllen bus system

Utilities & Services

  • Electricity
  • Water/Sewer
  • Natural Gas
  • Trash Collection

Quality of Life

Safety & Environment

Lower than national average for violent crime; property crime slightly above state average

Good air quality, low pollution

Healthcare Access

  • South Texas Health System McAllen
  • Doctors Hospital at Renaissance

Development Trends

Planned Developments

  • New subdivisions in north McAllen
  • Mixed-use retail/residential projects

Infrastructure Projects

  • Road expansions near Ware Rd and Trenton Rd

Investment Outlook

Growth Outlook

Steady, with moderate population and housing growth expected through 2026

Investment Opportunities

  • Single-family rentals
  • New construction homes
  • Small multifamily properties

Marketing Intelligence

Target Demographics

  • Young families
  • Healthcare professionals
  • Retirees
  • Investors

Competitive Advantages

  • Lower cost of living
  • Strong community amenities
  • Proximity to US-Mexico border

Pricing Strategies

Competitive pricing with incentives for first-time buyers

Common Objections & Response Strategies

Objection: Concerns about property crime rates

Response Strategy:

Provide data showing lower violent crime and highlight neighborhood watch programs

Objection: Limited new construction inventory

Response Strategy:

Showcase available new builds and upcoming projects

Objection: Perceived lack of high-paying jobs

Response Strategy:

Highlight growth in healthcare and education sectors, and proximity to larger job markets

Professional Recommendations

1

Leverage local school and amenity strengths in marketing

2

Educate buyers on current inventory and incentives

3

Target healthcare and education professionals

4

Monitor new construction and zoning changes for early opportunities

5

Highlight rental investment potential to out-of-area investors

Competitive Analysis

Comparable Markets

  • 78573 (Mission)
  • 78501 (central McAllen)
  • 78539 (Edinburg)

Market Positioning

Family-friendly, affordable, strong amenities

Competitive Advantages

  • More affordable than Austin/Dallas metros
  • Higher rental yields than coastal Texas

Price Comparison

Median home prices 10-15% lower than Texas urban average

Investment Metrics

6.5% (2025, estimate)
Cap Rates
6-7% gross yield
Rental Yields
15-17
Price-to-Rent
Positive for well-priced single-family and small multifamily
Cash Flow
4-5% annual through 2026
Appreciation

Buyer Journey Insights

First-Time Buyers

Strong incentives, affordable starter homes, down payment assistance available

Move-Up Buyers

Options for larger homes, new construction in north McAllen

Downsizers

Townhomes and smaller single-family homes available, low-maintenance options

Investors

Attractive cap rates, stable rental demand, low vacancy

Relocators

Appealing cost of living, good schools, and healthcare access

This zip code analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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