SpaceX Transforming Texas’s Rio Grande Valley
SpaceX headquarters in Starbase, Texas, appears unexpectedly after traveling over miles of dusty roads in the Rio Grande Valley. Before SpaceX’s establishment, this area was famous for its wildlife, especially bird watching. It had a few dozen homes catering mostly to retirees, given its proximity to the coastal wildlife reserves. Brownsville, the nearest major city, is over 20 miles away, located on the border with Matamoros, Mexico.
The cities of Starbase and Brownsville offer stark contrasts. Starbase functions as a company town, attracting newcomers from cities like Austin and San Francisco, drawn here for career opportunities. Meanwhile, Brownsville, home to a predominantly Latino population, relies heavily on farming and shrimping for economic activity.
SpaceX associates itself closely with Brownsville in terms of resources. Many employees reside in Brownsville, which has a population of approximately 192,000, enrolling their children in local schools. The company employs over 4,000 people at its Starbase facilities, with about 70% coming from the local area, as per company records. SpaceX plans to nearly double its workforce to about 8,000 employees within the year.
SpaceX’s significant expansion took a leap on Friday as its shares went public in the largest-ever initial public offering. Consequently, the company’s market value soared to over $2 trillion, making SpaceX founder Elon Musk the first person with a net worth of at least $1 trillion.
“Whenever there’s a launch or an event going on, we get flooded,” said Marco Colorado, owner of El Buen Pescador restaurant in Port Isabel, Texas.
Local business owners, like Marco Colorado of El Buen Pescador restaurant and Mikael Hinojosa of Double Day Bar of Champions, benefit from SpaceX’s presence. They experience an influx of SpaceX employees and visitors during rocket launches, enhancing their businesses. Hinojosa referred to this phenomenon as “a new type of tourism.” Patrons often gather to watch launches, both outdoors and on TV.
Despite the economic boost, some criticize the impact of SpaceX on the local community. Save RGV, an environmental activist group, argues that SpaceX’s rocket launches have inflicted damage on nearby homes, disturbed wildlife, and hurt air quality. Brownsville native Etienne Rosas, who recently ran for Congress in Texas’s 34th district, also noted that the growth of SpaceX has driven up housing prices throughout the Rio Grande Valley. By 2026, Brownsville’s average home price surged to $196,920, a rise of nearly 75% from $112,705 in 2018, according to Zillow.
Rosas commented that while SpaceX has generated economic momentum, the income inequality has worsened. “Brownsville had a certain dynamic pace, and now that’s gone,” he remarked.
SpaceX’s arrival has reshaped downtown Brownsville, with new investments and developments catering to a tech-savvy demographic. However, these changes have occurred at the expense of families with long-standing roots in the area, affecting community dynamics.