For the first time in seven years, apartment occupancy in the small South Texas market of McAllen/Brownsville stands above the U.S. average. As of December 2021, occupancy in McAllen/Brownsville was 97.8%, a few ticks ahead of the rate of 97.5% seen across the U.S. In contrast, occupancy in McAllen/Brownsville typically runs about 70 basis points behind the national norm. The Lower Rio Grande Valley market has about 36,000 existing units and has seen very little new supply added in the last decade, averaging less than 300 units delivered per year since 2010. In fact, since mid-2020, no new apartment supply has delivered in McAllen/Brownsville. More than 700 units are under way in the market today, however, marking the highest rate of construction since 2016. Meanwhile, annual effective asking rent growth in McAllen/Brownsville reached 9.2% in December, compared to 14.4% nationwide.