Dallas Fed President Analyzes Central Texas Growth

Lorie Logan addresses regional economic challenges driven by rapid population shifts in the San Marcos area.

Updated on Oct. 20, 2026 in Employment

Dallas Fed President Analyzes Central Texas Growth

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Federal Reserve Bank of Dallas President Lorie Logan met with leaders in San Antonio to discuss the economic evolution of Central Texas. The discussion focused on managing the labor and housing demands caused by a population surge of 63.8 percent in San Marcos between 2010 and 2024.

Why it matters

Regional leaders are forming alliances to coordinate the influx of investment and workers into the area. This collaboration seeks to mitigate pressures on infrastructure, energy, and labor markets that have escalated alongside the region's rapid expansion.

Construction labor costs have spiked to 50 percent of total project expenses, up from 30 percent previously. Meanwhile, the median home price in San Marcos fell by 13.5 percent in August 2026 compared to the same month in 2025.

The players

Lorie Logan

She serves as the President of the Federal Reserve Bank of Dallas.

The details

To address the skilled labor shortage, Texas State University is expanding its engineering department and utilizing a dedicated makerspace. The facility provides students with hands-on training in welding, 3-D printing, and computer-aided design, while the university is also developing student housing without high-cost amenities to keep prices accessible.

2010 to 2024: San Marcos experienced a 63.8 percent population increase.
August 2025: Median home price served as the baseline for the current annual comparison.
August 2026: Median home prices dropped 13.5 percent from the prior year.
October 20, 2026: The report on regional economic developments was published.

Macro View

This activity follows a long-term pattern of explosive growth in Central Texas that diverges from historical economic cycles in more stagnant regions. The current integration of university training programs and housing cost adjustments mirrors regional strategies used during previous periods of rapid industrialization.

Residents may see shifting housing affordability as the market adjusts to new pricing trends. Additionally, the focus on skilled labor training suggests a potential rise in local job opportunities for students and professionals entering the engineering sector.

The takeaway

The region is proactively adapting its educational and housing models to keep pace with rapid population changes. Residents can watch for university-led housing projects that prioritize affordability over luxury features as a bellwether for local development.