SpaceX's presence in a small town on the Texas border has already doubled prices and rents. Now, an upcoming $75 billion IPO will amplify that shock, but also bring a wave of new local fortunes, according to Bloomberg.
Elon Musk's company settled in Brownsville, Texas a decade ago and built a spaceport on the shores of the Gulf of Mexico. Since then, French restaurants have opened downtown for newcomers, while the beach, once a hangout for low-income families, now attracts tourists and Cybertrucks.
Capital attracted to the area has created both winners and losers, a dynamic that will be amplified with the IPO of SpaceX this summer. Many locals can't afford the new restaurants opening next to the old border shops that cater to Matamoros' Mexican customers. At the same time, housing prices are rising rapidly, even though the city is building at a brisk pace.
SpaceX's IPO, through which the company aims to raise about $75 billion, will create millionaires among its more than 3,000 local employees. Brownsville's civic and business leaders are trying to turn this into a blessing rather than a curse for their city, Bloomberg writes.
“It was a bit of a shock to the community, but I think things have stabilized,” Mayor John Cowen said. “I think, for the most part, people are very appreciative of having them (SpaceX employees) here, and we're excited about the economic growth we're seeing.”
He is also optimistic about other industrial projects coming to the area after the establishment of SpaceX. Construction has begun on a liquefied natural gas export terminal at the port, and President Donald Trump announced in March of this year the development of an oil refinery that could create 500 full-time jobs.
“Twenty years ago, such projects would have seemed like pipe dreams. “This is an extraordinary time for the city of Brownsville, which is asserting itself as a place of investment, innovation and opportunity,” the mayor added.
Located in the southern tip of the state, Brownsville has seen periods of prosperity and decline over time, from the cotton trade during the Civil War to its time as a shopping destination for wealthy Mexicans.
In 2014, the city's fortunes changed with the start of construction on the SpaceX base. Although it was considered the poorest city in the country, its geographic position near the equator and its openness to the unpopulated waters of the Gulf gave Musk's rockets an extra energy boost. As the spaceport took shape, company employees gradually moved into the area.
The relocation of SpaceX employees to the area accelerated in 2021, when a single message published by Elon Musk on social networks attracted waves of new specialists from Oregon, Washington or California.
“Like a light switch — that tweet went live and I started getting calls from Oregon, Washington state, Northern California,” said real estate agent Bob Torres. “His tweet had that power.”
Some of those who moved to the area bought large houses in the country, which locals previously associated with drug trafficking. “In the old days, when we saw something like this, it meant a cartel member,” Torres explained. “Now that house belongs to a man or woman connected to SpaceX.”
The employees, however, did not mingle much among the residents. As the base became the company's official headquarters, SpaceX staff began living right next to the spaceport and voted to incorporate the land as its own city, called Starbase. The company even uses a Boeing 737 to fly its employees to California several times a week.
As a result, much of the money SpaceX is investing in South Texas is not being seen in Brownsville. Although Elon Musk donated $20 million to the school district and $10 million for revitalization, many of the storefronts in the old center remain empty. The ones that do work are cheap clothing stores for Mexican shoppers or house a plasma donation center across the street from City Hall.
In parallel, new businesses have sprung up to meet the needs of SpaceX employees and tourists. Michael Limas opened a French-inspired cocktail bar and restaurant with his brother. “We have an influx of newcomers who probably have higher expectations of the cuisine,” Limas explained.
But not all restaurants fit into the budget of the locals. In a city where 94% of the residents are Latino, the ethnic diversity of the customers shows that they are newcomers or visitors.
“Going out to a $300 dinner — that just doesn't happen,” explained Bob Torres. “The average Brownsville resident wouldn't be able to afford to go there.” However, thousands of visitors fill hotels to witness Space X launches.
Economic activity is also growing at Brownsville South Padre Island International Airport. Each SpaceX launch generates an increase in private jet traffic. Laura Sparks, an administrator at Sun Valley Aviation, says the firm is upgrading its hangars to meet the demand. In parallel, the local flight school has seen an increase in enrollment, with many SpaceX employees taking up flying as a hobby.
However, one of the biggest economic impacts was registered on the real estate market. Local developer Joel Loera, who is building residential complexes near Starbase, estimated that more than 80 percent of the buyers have ties to SpaceX or new industrial projects in the area, adding that the situation is seen as a good thing by the community.
“It's exciting for everybody in the community. There's two sides to the coin, right? But I think generally, deep down, you know it's a good thing for the area,” Joel Loera said.
The other facet is the costs. Between 2014 and 2025, the median home sales price in Cameron County more than doubled, rising 125 percent to $254,000, according to data from Texas A&M University.
Last year, 37 percent of homes that changed hands sold for more than $300,000, up from 8 percent in 2014. Those prices threaten to drive out residents whose wages haven't kept up.
“Everybody's rent went up — my rent went up $200 a month,” said Bekah Hinojosa, a local artist and community organizer. She is part of a group of residents protesting SpaceX's expansion, saying the company's employees are buying up the nicest neighborhoods and turning them into Airbnb homes.
Despite all the effects SpaceX is having on the area, it's still possible to live in Brownsville without feeling the company's impact, at least until the next liftoff.
At a baseball game at Veterans Memorial High School, Polo Palacios, a 77-year-old former public school teacher, said he wasn't feeling the effects of increased tourism or new jobs.
“We want the economy to grow because Brownsville is one of the poorest cities in the valley,” Palacios said. For him, the biggest change was Boca Chica Beach, located near Starbase, where he often went as a child. Since SpaceX began restricting public access near launch sites, he stopped going there and never visited the base: “Never been there, bro. No idea.”
