San Antonio and Austin are Fusing Into one Massive Megaregion

The Central Texas region between Austin and San Antonio is growing into one massive metro area, writes Jared Brey in Governing.

Small towns dotting the area between the two cities are exploding with new development. One such town, Cedar Park, grew from 5,000 people in 1990 to over 77,000 people today. According to Brey, “Between July 2023 and July 2024 alone, the Texas population grew by nearly 563,000. Its economy is now larger than Canada’s, and second among U.S. states only to California.” This growth comes with a new tax base — and a need for new and upgraded infrastructure.

Growth at this scale is causing some real headaches, notably in areas such as traffic and water. Texas already has too much of one and not enough of the other. But rapid and sustained growth has showered benefits on local governments. Many of them can invest at a scale they’ve never experienced before.

Brey notes that the challenges and opportunities aren’t localized, and many require action at a regional scale. “At the top of everyone’s list is traffic congestion on Interstate 35, which has slowed to a crawl as the region has boomed,” with the drive between Austin and San Antonio now taking at least twice as long as a decade ago. A proposal to build a high-speed rail line between the two cities could help, but federal funding for the project is uncertain during the current administration.

Cities in the region are also struggling to meet demand for water, which primarily comes from local aquifers. The Edwards Aquifer, the most important in the area, is at its lowest level since 1990.