SpaceX’s headquarters in Starbase, Texas, materializes suddenly after traversing miles of dusty roads. Before SpaceX’s arrival, the area was renowned for its coastal wildlife, particularly birdwatching. The region previously had just a few dozen homes, mostly belonging to retirees spending their winters there. Brownsville, the nearest major city, lies over 20 miles away on the border with Matamoros, Mexico.
The differences between Starbase and Brownsville are striking. Starbase is essentially a company town, populated by individuals relocating from places like Austin and San Francisco for work opportunities. In contrast, Brownsville’s largely Latino population primarily engages in farming and shrimping.
Despite their differences, Starbase and Brownsville share resources. Many SpaceX employees reside in Brownsville, which holds a population of around 192,000, and send their children to schools there. According to company records, SpaceX employs over 4,000 workers at Starbase, with approximately 70% hailing from the local area. Plans indicate an expansion that could reach 8,000 employees this year.
Originally, the area mainly attracted visitors for the wildlife. Now, SpaceX’s influence has shifted some focus to technology and innovation. On Friday, SpaceX advanced significantly when its shares went public, marking the largest initial public offering in history. This IPO boosted the market value of the company beyond $2 trillion and elevated SpaceX founder Elon Musk to the unprecedented status of a trillionaire.
SpaceX’s Starship 39 rocket launch from Starbase facilities on May 22, 2026. Image: Ronaldo Schemidt /AFP via Getty Images
Local businesses have experienced the impact of SpaceX’s presence as well. Marco Colorado, owner of El Buen Pescador restaurant in nearby Port Isabel, Texas, reported a surge in business from SpaceX employees and tourists coming to witness the rocket launches. “Whenever there’s a launch, we get flooded,” Colorado said. Visitors often arrive in Tesla vehicles, making them easily identifiable.
Similarly, Mikael Hinojosa, owner of Double Day Bar of Champions in Port Isabel, noted the influx of a “new type of tourism.” On launch days, patrons gather on the restaurant’s patio to watch the liftoffs and move indoors to track the rockets on television. Hinojosa mentioned, “It’s been positive for business, but there’s a downside. In our museum, cannonballs fall over during launches. We don’t want to ruin existing tourism.”
Critics, such as the environmental activist group Save RGV (Rio Grande Valley), argue that rocket launches deposit debris on nearby homes, disrupt native wildlife, and harm air quality. Etienne Rosas, a Brownsville native and former congressional candidate, voiced concerns over surging housing prices resulting from SpaceX employees purchasing homes. In 2026, the average home price in Brownsville reached $196,920, a significant rise from $112,705 in 2018, according to Zillow.
While acknowledging the economic momentum created by SpaceX, Rosas warns of widening inequality. “Brownsville had a certain dynamic pace, and now that’s gone,” he stated, acknowledging that jobs and investment have reshaped downtown Brownsville towards a tech-oriented demographic, altering the fabric of a community that families have called home for generations.
SpaceX declined to comment on these developments.
Image: Sergio Flores/AFP via Getty Images