A Year in Review: The Luxury Home Market in McAllen

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McAllen is a city with a growing economy and vibrant culture. The landscape of McAllen has undergone significant shifts in the landscape of upscale living. Since 2012, McAllen has been one of the fastest-growing cities, proving that it is a leader in real estate and is not subjected to volatile market shifts like the rest of the country. This trend has continued today and contributed to the growth in real estate – especially the development of luxury homes.

Over the past year, the luxury real estate market has changed quite a bit.

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New Trails in Design

There has been a discernable shift towards embracing eco-friendly and sustainable architectural designs. Energy efficiency, smart home technologies, and nature-centric designs have become a hallmark of these new luxury developments. As green building practices are expensive, they are the core of building eco-friendly luxury homes and reduce dependence on non-renewable sources.

Homes Becoming More Luxurious

 During 2023, smaller luxury homes are becoming more popular with buyers. Smaller luxury homes sold 19% faster than larger ones in 2022, influencing the luxury home market 2023. As these are lower prices than larger luxury homes, 26% of transactions were cash sales, as buyers pay in cash for luxury homes.

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Homes with a Seamless Fusion of Indoors and Outdoors

There has been a pronounced emphasis on creating homes that offer a flow-over living space from indoors to outdoors. Formal rooms are outdated, and preference is given to more casual, relaxed living areas with indoor spaces that integrate with the outdoors, facilitated by sliding doors, stacking glass doors, and floor-to-ceiling windows.

More Opportunities for Buyers

Since October 2023, the luxury home market has shown an increase in the number of sold properties. Family home sales rose from 2.73% to 7.72%. This indicates that there is resilience in the luxury market arena. Investors are adding to their portfolios, and there was a 10% increase in individuals obtaining three or more luxury homes. The luxury real estate market is becoming more globalized. Real estate offers reliability and stability to investors who hold on to their assets, and due to the strong US $, investors from China, India, Canada, and Mexico increased their portfolios of luxury real estate.

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Building Cost Dynamics

There has been a steady increase in building material prices throughout the year. The rise in building costs has presented challenges for developers and homeowners. Yet, according to the Comprehensive Housing Market analysis, sales of luxury homes increased by 3%, and the average sale price was up 7%. There is an optimistic forecast for 2024 as demand increases for new luxury homes.

Booming Landscape with Positive Forecast

During 2023, McAllen witnessed rapid development and an expansion in the luxury home market. The positive trend in the growth of luxury homes will likely continue. The focus on sustainability, technology integration, personalized development, and innovation with affordability will positively impact the development of luxury homes in 2024. With growth in employment, education and government jobs in McAllen and more people moving to work from home, the need for luxury homes designed to accommodate your needs will increase in 2024.

Consider all your options for a change in lifestyle to a luxury home. Treviño Construction can offer innovations and trends to suit your needs. Contact  Treviño Construction today to see how we can make your dream a reality.