From Factories to Rentals: The Impact of Juárez’s Manufacturing Expansion on El Paso’s Housing Market

For decades already, maquiladoras and factories in Juarez have been supporting transportation, businesses, employment and housing demand on both sides of the border between El Paso and Ciudad Juarez. That’s why these regions have strong economic connection. In Juarez, the effects of manufacturing growth have reached beyond Mexico’s industrial parks, including on El Paso’s rental market. However, according to recent research, this relationship has reasons more complicated than just rising rents and factory expansion.

Because Juarez is located next to the United States, a strategic location near the established industrial structures with access to cross-border supply chains, it became a major manufacturing center. Because of this, companies have increasingly considered Mexico as a part of a nearshoring strategy, moving production closer to American consumers instead of relying heavily on Asian factories. Over roughly four and a half years, Juarez industrial market grew from about 71 million square feet to 100 million square feet. This illustrates the long-term industrial importance of the region.

Because these two cities share businesses, workers, and transportation networks, Juarez’s industrial activity can influence the housing market of El Paso. Many employees and managers connected to the manufacturing sector of Juarez choose to live in El Paso, where they can rent homes or apartments for good rates. The growth of manufacturing increases pressure on El Paso’s rental supply because of increased economic activity, which attracts contractors, engineers, logistic workers, and other professionals whose housing demand extends across the border.

This trend has been proven by recent housing research. The Texas Real Estate Research Center projects that apartment rents in El Paso will reach new highs in 2026, with average monthly rents of about $1,360 for two-bedroom units and $1,162 for one-bedroom units. Higher rents are also promising increased multifamily construction.

Still, Juarez manufacturing cannot be totally attributed to El Paso’s rental trends. There are also many factors that influence the housing market of El Paso. These include population growth, local employment, mortgage costs, construction, and the availability of apartments. In addition, Juárez’s manufacturing sector has recently faced significant job losses. According to the Federal Reserve Bank of Dallas’ report, the city lost approximately 57,500 maquiladora jobs between mid-2023 and mid-2025. At the same time, manufacturing in Juarez is also becoming more and more digital.

Clearly, as shown by this recent slowdown, housing and employment are closely connected. Demand for housing can rise when manufacturing expands. And when factories reduce employment, that demand can also weaken. This shows that the relationship is therefore not a one-way path from factories to higher rents. Instead, the rental market in El Paso reflects the changing fortunes of a shared border economy.