Real Estate Market Overview 2004
El Paso
Nestled at the foot of the Franklin Mountains, the City of El Paso is bordered by Mexico on the south and New Mexico to the north.
With a 2000 population of 563,622, El Paso is the fifth largest city in Texas. Across the Texas-Mexico border from El Paso is Juarez,
with a population of 1.3 million. The El Paso-Juarez community comprises the largest metropolitan area on the border between the
United States and Mexico. El Paso is also the home of Lee Trevino, a popular championship professional golfer.
Quick Facts
Land Area 1,013 square miles
Population Density (2000) 670.8 people per square mile
Counties El Paso
Area Cities and Towns Anthony, Canutillo, Clint, El Paso, Fabens, Horizon City, San
Elizario, Socorro, Terrillo
Real Estate Center Market Overview 2004
El Paso, Texas
Table of Contents
Demographics ..............................................................................................3
Education .....................................................................................................6
Employment .................................................................................................7
Economy ....................................................................................................13
Infrastructure ..............................................................................................14
Public Facilities ..........................................................................................15
Multifamily ..................................................................................................16
Housing ......................................................................................................18
Retail ..........................................................................................................21
Hotel...........................................................................................................22
Office..........................................................................................................23
Industrial ....................................................................................................25
-2-
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Demographics
El Paso MSA Population
Percent
Year Population Change
1990 591,610 1.8
1991 608,206 2.8
1992 619,138 1.8
1993 634,044 2.4
1994 646,181 1.9
1995 654,250 1.2
1996 656,482 0.3
1997 665,066 1.3
1998 671,250 0.9
1999 675,397 0.6
2000 679,622 0.6
2001 689,543 1.5
2002 697,562 1.2
Source: U.S. Census Bureau
Area Cities With 10,000 or More Residents
Growth 1990-2000
City 2000 Population (percent)
El Paso 563,662 9.4
Socorro 27,152 18.5
Source: U.S. Census Bureau
-3-
Real Estate Center Market Overview 2004
El Paso, Texas
Texas Metropolitan Area Population Change, 1990 - 2002
Metropolitan Area 1990 Population 2002 Population
McAllen-Edinburg-Mission 383,545 614,474
Austin-San Marcos 846,227 1,349,291
Laredo 133,239 207,611
Dallas 2,676,248 3,743,254
Brownsville-Harlingen-San Benito 260,120 353,561
Brazoria County 191,707 257,256
Houston 3,321,911 4,420,081
Fort Worth-Arlington 1,361,034 1,802,465
Texas 16,986,335 21,779,893
Bryan-College Station 121,862 156,099
San Antonio 1,324,749 1,660,205
Killeen-Temple 255,299 319,163
Galveston-Texas City 217,396 261,219
Tyler 151,309 181,437
Sherman-Denison 95,019 113,860
Amarillo 187,514 222,915
El Paso 591,610 697,562
Waco 189,123 217,713
Victoria 74,361 84,932
Lubbock 222,636 247,574
Longview-Marshall 193,801 212,288
Corpus Christi 349,894 382,188
Texarkana 120,132 131,027
Wichita Falls 130,351 138,960
Odessa-Midland 225,545 239,981
Beaumont-Port Arthur 361,218 382,242
Abilene 119,655 125,647
San Angelo 98,458 103,018
Source: U.S. Census Bureau
El Paso MSA Projected Population
Texas State
Data Center Texas Water
Year (Scenario 0.5) Development Board
2005 737,866 -
2010 799,936 921,780
2015 864,980 -
2020 926,760 1,082,445
Sources: Texas State Data Center and Texas Water Development Board
-4-
Real Estate Center Market Overview 2004
El Paso, Texas
Household Composition
El Paso MSA Texas
Average household size (2000) 3.18 2.74
Population younger than 18
32.0 28.2
(2000, in percent)
Population 65 and older
9.7 9.9
(2000, in percent)
Source: U.S. Census Bureau
Distribution by Race and Hispanic or Latino Origin
(in percent)
El Paso MSA Texas
1990 2000 1990 2000
White 25.7 73.9 60.8 71.0
Black 3.9 3.1 11.7 11.5
Asian 1.1 1.0 0.3 2.7
American Indian 0.5 0.8 1.8 0.6
Other 0.0 17.9 0.1 11.7
Two or more races* - 3.2 - 2.5
Hispanic (of any race) 68.8 78.2 25.3 32.0
* For the 2000 Census, the Census Bureau changed the "race" options, allowing people to report their race as "other" or as two or more races.
Source: U.S. Census Bureau
Projected Population Growth, 2000-2020
(in percent)
Source: Texas State Data Center (Scenario 0.5)
-5-
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Education
Educational Level, Persons Age 25 and Older
2000 (in percent)
Level of Education El Paso Texas
High school graduate 23.9 26.3
Some college, no degree 23.0 21.7
Associate's degree 5.5 5.2
Bachelor's degree 10.4 16.1
Graduate or professional degree 5.4 7.4
Source: U.S. Census Bureau, 2000
Local College and University Enrollment
Fall Spring Fall
School 2002 2003 2003
Texas Tech University Health Sciences Center at El Paso - 48 107
University of Texas at El Paso 17,232 16,476 18,542
Sources: Educational institutions
-6-
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Employment
Top Ten Employers
Employer Sector Employees
El Paso Independent School District Education 8,663
Fort Bliss Civilian Government 6,803
Ysleta Independent School District Education 6,500
City of El Paso Government 6,264
University of Texas at El Paso Education 4,871
Socorro Independent School District Education 3,995
Sierra Providence Health Network Health care 3,761
El Paso Community College Education 3,728
Wal-Mart Retail 3,706
County of El Paso Government 2,700
Source: El Paso Office of Economic Development May-2003
-7-
Real Estate Center Market Overview 2004
El Paso, Texas
Top Ten Private Employers
Employer Sector Employees
Sierra Providence Health Network Health care 3,761
Wal-Mart Retail 3,706
Las Palmas and Del Sol Regional Hospital Hospital 2,244
Echostar Satellite Corp. Call center 2,012
MCI/GC Services Telemarketing 1,790
West Teleservices Corp. Telemarketing 1,500
Sahara, Inc. (Nat. Cent. for Emp. of Disabled) Sheltered workshop 1,369
Big 8 Food Stores Grocery 1,220
Providian Financial Finance 1,010
Yazaki North America (EWD & ELCOM) Manufacturing 1,000
Source: El Paso Office of Economic Development May-2003
Ten Largest Maquiladoras in Ciudad Juarez
Employer Sector Employees
Delphi Automotive 68,643
Yazaki Corporation Automotive 16,123
Thomson Consumer Electronics Electronics 10,874
Lear Corporation Automotive 8,569
A.O. Smith Corporation Electrical 6,598
Sumitomo Wiring Electric Systems Electrical 4,879
Johnson and Johnson Co. Medical 4,569
Philips Electronics Electronics 4,387
Johnson Controls, Inc. Automotive 3,589
Scientific Atlanta, Inc. Electronics 2,996
Source: El Paso Office of Economic Development May-2003
Please note the Juarez, Mexico list is based on all Maquiladoras in Mexico and local knowledge in sorting out companies that do not have a presence
in Juarez.
-8-
Real Estate Center Market Overview 2004
El Paso, Texas
Employment Growth by Industry - 2003
El Paso MSA Texas
Employment growth (percent) -0.5 -0.5
Unemployment rate (percent) 9.7 6.8
New jobs -1200 -49,800
Employment growth by sector (percent)
Manufacturing -12.3 -5.0
Construction - -3.0
Natural Resources and Mining 0.8 0.6
Trade, Transportation and Utilities 1.9 -1.8
Information 5.9 -5.8
Financial Activities 1.7 0.9
Professional and Business Services -5.7 -1.1
Educational and Health Services 3.6 3.3
Leisure and Hospitality 1.7 1.2
Government 2.4 1.3
Total Nonfarm -0.5 -0.5
Source: Texas Workforce Commission and U.S. Bureau of Labor Statistics
-9-
Real Estate Center Market Overview 2004
El Paso, Texas
Texas Metropolitan Area Employment Change, 1990 - 2003
1990 2003 Percent
Metropolitan Area Employment Employment Change
Austin-San Marcos 454,618 746,750 64.3
Laredo 48,766 77,065 58.0
McAllen-Edinburg-Mission 128,560 197,870 53.9
Brownsville-Harlingen-San Benito 90,866 131,457 44.7
Bryan-College Station 58,292 82,368 41.3
San Antonio 587,550 796,235 35.5
Killeen-Temple 87,724 117,801 34.3
Tyler 70,970 93,561 31.8
Dallas 1,467,668 1,916,607 30.6
Texas 8,071,312 10,284,203 27.4
Fort Worth-Arlington 721,875 915,919 26.9
Houston 1,720,152 2,180,719 26.8
Victoria 34,648 43,652 26.0
Amarillo 92,967 113,051 21.6
El Paso 229,358 274,926 19.9
Lubbock 107,823 128,854 19.5
Waco 86,347 102,310 18.5
Longview-Marshall 86,048 100,952 17.3
Odessa-Midland 104,401 120,374 15.3
Corpus Christi 150,142 172,705 15.0
San Angelo 43,587 49,798 14.2
Brazoria County 93,552 105,320 12.6
Abilene 52,389 58,513 11.7
Sherman-Denison 43,804 48,866 11.6
Wichita Falls 56,897 62,812 10.4
Galveston-Texas City 105,423 114,327 8.4
Texarkana 51,575 55,658 7.9
Beaumont-Port Arthur 157,435 167,915 6.7
Source: U.S. Bureau of Labor Statistics and The Real Estate Center
- 10 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso MSA Employment
% Change
Year Employment Year Ago
1990 229,358 -
1991 231,681 1.0
1992 240,988 4.0
1993 248,530 3.1
1994 255,041 2.6
1995 256,979 0.8
1996 255,433 -0.6
1997 257,924 1.0
1998 260,489 1.0
1999 260,694 0.1
2000 263,672 1.1
2001 263,222 -0.2
2002 267,149 1.5
2003 274,926 2.9
Source: U.S. Bureau of Labor Statistics
Annual Percent Change in El Paso MSA Employment
Source: U.S. Bureau of Labor Statistics
- 11 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso MSA Unemployment Rate
(in percent)
Source: U.S. Bureau of Labor Statistics
Fort Bliss Employment
Source: City of El Paso
- 12 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Economy
El Paso MSA Gross Retail Sales
Year Total Sales Sales per Capita
1990 3,718,228,382 6,285
1991 3,887,059,277 6,391
1992 4,258,148,498 6,878
1993 4,546,082,757 7,170
1994 4,939,810,275 7,645
1995 4,871,535,643 7,446
1996 5,258,414,674 8,010
1997 5,050,367,254 7,594
1998 5,309,167,256 7,909
1999 5,884,997,029 8,713
2000 6,343,535,589 9,334
2001 6,354,119,088 9,215
2002 6,508,286,091 9,330
State Average 2002: $12,143
Source: Texas Comptroller's Office
- 13 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Infrastructure
El Paso Airline Boardings
El Paso International Airport 1998 1999 2000 2001 2002 2003
Enplaned 1,635,282 1,657,517 1,688,134 1,564,380 1,449,965 1,466,713
Deplaned 1,605,680 1,647,984 1,624,585 1,527,328 1,425,751 1,448,033
Total 3,240,962 3,305,501 3,312,719 3,091,708 2,875,716 2,914,746
Source:El Paso International Airport
Border Crossings
1999 2000 2001 2002 2003
Pedestrian Crossings
Northbound 6,602,353 7,002,240 7,307,850 8,268,991 7,715,504
Southbound 5,302,707 5,503,418 5,504,661 6,039,402 4,924,531
Total 11,905,060 12,505,658 12,812,511 14,308,393 12,640,035
Vehicle Crossings
Northbound 8,543,131 8,981,678 8,370,987 7,572,650 7,565,603
Southbound* 5,309,676 5,678,775 4,842,525 4,316,436 4,102,058
Total 13,852,807 14,660,453 13,213,512 11,889,086 11,667,661
Rail Crossings
Northbound - - 17,310 30,437 21,045
Southbound - - - - -
Total - - 17,310 30,437 21,045
Truck Crossings
Northbound - - 666,910 704,199 659,614
Southbound* - - 344,023 307,203 259,928
Total - - 1,010,933 1,011,402 919,542
Source: Texas Center for Border Economic and Enterprise Development
* December figures could not be gathered for 2003 and are not included in the total number.
- 14 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Public Facilities
El Paso City Public Facilities Building Permits
El Paso City Building Permit Office
- 15 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Multifamily
El Paso Apartment Statistics 2003
Texas Metro
El Paso Average
Average rent per square foot $0.65 $0.79
Average rent for units built since 2000 $0.67 $0.91
Average occupancy (percent) 95.1 92.1
Average occupancy for units built since 2000 (percent) 97.4 90.8
Source: Apartment MarketData Research
El Paso MSA Multifamily Building Permits
(5+ Family Bldg. Permits in units)
Source: U.S. Census Bureau
- 16 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso City Multifamily Building Permits
El Paso City Building Permit Office
- 17 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Housing
Housing Affordability - Fourth Quarter 2003
Percent of Households THAI for
That Can Afford First-time
Median-priced Home THAI* Homebuyers
El Paso 58 1.15 0.93
Texas MLS Total 54 1.06 0.92
U.S. Total 55 1.06 0.77
* The THAI is the ratio of median household income to the income required to buy the median priced home using currently available mortgage
financing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of 1.00 indicates that the median household
income is just enough to qualify for a loan sufficient to purchase the median-priced home.
Source: Real Estate Center at Texas A&M University
Price Distribution of MLS Homes Sold, El Paso Area, 2003
(in percent)
Price Range 1998 1999 2000 2001 2002 2003
$29,999 or less 1.6 1.4 0.9 0.9 1.0 0.8
30,000 - 39,999 2.1 1.8 1.7 1.6 1.8 1.4
40,000 - 49,999 6.4 5.4 4.6 4.4 3.2 3.1
50,000 - 59,999 12.4 14.0 12.5 8.5 7.5 6.1
60,000 - 69,999 17.7 16.6 16.4 15.3 13.6 12.1
70,000 - 79,999 13.9 13.8 13.1 11.5 13.4 12.5
80,000 - 89,999 11.9 11.2 12.4 11.1 11.2 12.1
90,000 - 99,999 5.5 8.3 7.1 7.8 8.2 8.4
100,000 - 119,999 8.7 8.8 9.2 11.6 11.3 12.2
120,000 - 139,999 6.9 4.7 6.5 9.4 9.0 10.3
140,000 - 159,999 4.2 4.2 4.3 5.2 6.0 6.3
160,000 - 179,999 2.7 3.2 3.3 3.7 4.1 3.8
180,000 - 199,999 1.4 1.7 2.2 2.6 2.6 2.9
200,000 - 249,999 2.5 2.6 3.2 3.0 3.4 4.0
250,000 - 299,999 1.0 1.1 1.3 1.5 1.7 1.7
300,000 - 399,999 0.8 0.9 0.9 1.4 1.3 1.6
400,000 - 499,999 0.3 0.2 0.2 0.3 0.4 0.6
500,000 and more 0.2 0.1 0.2 0.2 0.3 0.2
Source: Real Estate Center at Texas A&M University
- 18 -
Real Estate Center Market Overview 2004
El Paso, Texas
Tax Rates, 2003
Tax Rate
per $100
Taxing Entity Valuation
City of El Paso $0.72
El Paso ISD 1.57
Community College 0.14
Hospital District 0.19
El Paso County 0.41
Total $3.03
Source: City of El Paso Tax Office
El Paso MSA Single-family Building Permits
(in units)
Source: U.S. Census Bureau
Average Sales Price of Single-family Home, El Paso Area
Source: Real Estate Center at Texas A&M University
- 19 -
Real Estate Center Market Overview 2004
El Paso, Texas
Single-family Home Sales Volume, El Paso Area
(Number of Units)
Source: Real Estate Center at Texas A&M University
- 20 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Retail
El Paso City Retail Building Permits
El Paso City Building Permit Office
- 21 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Hotel
Hotel* Occupancy and Rental Rates
El Paso Texas
2000
Rooms (000) 7.6 296.8
Average daily rental rate $54.99 $71.56
Occupancy rate (percent) 61.2 59.3
2001
Rooms (000) 7.4 307.1
Average daily rental rate $54.53 $70.27
Occupancy rate (percent) 61.3 57.3
2002
Rooms (000) 7.4 314.3
Average daily rental rate $55.75 $70.11
Occupancy rate (percent) 61.8 55.4
2003
Rooms (000) 7.6 320.8
Average daily rental rate $56.01 $68.78
Occupancy rate (percent) 61.4 54.3
Source: Office of the Governor Economic Development and Tourism and Source Strategies, Inc. of San Antonio
*Only properties exceeding $16,600 in the current quarter are included; those units below $16,600 only result in 1.5% of the total state revenues, and
have been excluded from this database.
- 22 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Office
Office Property Statistics
2001 2002 2003
Central Business District
Inventory 2,774,097 2,632,414 2,632,414
Occupancy (percent) 65.8 62.2 57.7
Net Absorption -312,099 -187,936 -118,519
Suburban
Inventory 5,140,913 5,314,913 5,457,913
Occupancy (percent) 83.9 86.4 83.8
Net Absorption -22,178 -3,290,143 -21,637
Total
Inventory 7,915,010 7,947,327 8,090,327
Occupancy (percent) 77.6 78.4 75.3
Net Absorption -334,277 -3,478,079 -140,156
Rental Range (SF) $8 - $15 $8 - $18 $8 - $18
Source: Keller-Koch Realtors
Office Property Statistics, El Paso Area
Occupied & Vacant Inventory, Year-End 2003
(in s.f.)
Source: Keller-Koch Realtors
- 23 -
Real Estate Center Market Overview 2004
El Paso, Texas
Office Vacancy Rate, El Paso Area (in percent)
Source: Keller-Koch Realtors
El Paso City Office Building Permits
El Paso City Building Permit Office
- 24 -
Real Estate Center Market Overview 2004
El Paso, Texas
El Paso Market Overview 2004
Industrial
2003 Year-End Industrial Vacancy
Standard
Industrial Total
Total* 54,700 54,700
Vacant* 5,900 5,900
Vacancy Rate 10.8% 10.8%
Absorbed* 320 320
Under Construction* 0 0
Rental Rate** $3.35 $3.35
Source: Grubb & Ellis
* Square feet in thousands; includes owner-occupied
** Weighted average asking rent/SF/year Triple Net
Industrial Property Statistics, El Paso
1998 1999 2000 2001 2002 2003
Inventory (square feet) 46,374,204 48,568,185 51,110,287 52,307,449 53,377,449 54,306,550
Occupancy (percent) 91.7 92.7 91.9 89.6 85.6 84.6
Net Absorption 1,878,159 2,503,038 1,904,577 -99,974 -1,177,447 254,916
Rental Range (per square foot) $3.15 - $5 $3.15 - $5 $3.20 - $5 $3.30 - $6 $2.75 - $6 $2.75 - $6
Source: Keller-Koch Realtors
Industrial Property Statistics, El Paso Area
Occupied & Vacant Inventory
(in s.f.)
Source: Keller-Koch Realtors
- 25 -
Real Estate Center Market Overview 2004
El Paso, Texas
Industrial Vacancy Rate, El Paso Area
(in percent)
Source: Keller-Koch Realtors
El Paso City Industrial Building Permits
El Paso City Building Permit Office
- 26 -
Real Estate Center Market Overview 2004
El Paso, Texas
This annual report is created free of charge by the Real Estate Center at Texas A&M
University. We strive to provide the most accurate, up-to-date, and insightful data to
paint a detailed picture of Texas’ Metropolitan Statistical Area’s. The Center also
provides numerous publications, resources, and data on building permits, employment,
population, and home sales at http://recenter.tamu.edu.
Report compiled by:
Administrative Coordinator
Edith Craig
Research Analysts
Isilay Civan
Blake Lacy
Real Estate Center, 2115 TAMU, College Station, TX 77843-2115
Phone: 979.845.2031 | Fax: 979.845.0460
- 27 -