Finding the ideal location for your first medical practice is a critical decision that can significantly impact your long-term success. At Practice Real Estate Group, we recently guided a veterinarian through opening their first clinic in Laredo, Texas, and discovered compelling opportunities for healthcare entrepreneurs in this growing border city.
Laredo, Texas
The Data Behind Laredo’s Growth Potential
When evaluating potential practice locations, population trends, and economic indicators provide essential validation. Laredo’s current population of 267,780 (with a greater metro area of 340,000) shows consistent growth patterns that point to substantial opportunity:
- A planned fifth international bridge between Laredo and Mexico will further enhance connectivity
- Projections indicate the population will nearly double over the next 15-20 years
- Ongoing housing and infrastructure development supports this expansion
Economic Foundation for Healthcare Success
Laredo’s position as the number one inland port on the U.S.-Mexico border creates a stable economic environment for new businesses. According to the Texas Economic Development Corporation, almost $1 billion in goods passes between Laredo and Mexico daily, driven by:
- Strong logistics and transportation sectors
- Robust international trade relationships
- Business-friendly policies and incentives
In 2022, Laredo ranked as the best city to start a business according to independent surveys, a distinction supported by Texas Governor Greg Abbott. This business-positive environment extends to healthcare practices, with accessible financing options and lower overall business costs.
Addressing a Significant Healthcare Gap
Perhaps most compelling for healthcare entrepreneurs is Laredo’s long-standing designation as a medically underserved area. A 2023 Community Health Needs Assessment by the Texas Health Institute revealed:
- 34.8% of residents travel outside Laredo for medical, dental, or mental health care
- 46.2% leave the city specifically for dental services
- Priority health concerns include diabetes, obesity, mental health, preventative care, child health, and oral health
This gap between healthcare needs and available services creates a clear opportunity for entrepreneurial practitioners. Our recent veterinary client—the only doctor in their specialty not originally from Laredo—experienced such significant demand that they began planning for expansion just four months after opening.
Cost Advantages for Practice Owners
Starting a practice in Laredo offers significant cost benefits compared to other Texas markets:
- Commercial real estate averages $20.36 per square foot (compared to Austin at $41.81, Houston at $31.12, and San Antonio at $27.34)
- Overall cost of living is 12% lower than the national average and 5% lower than the Texas state average
- Residential real estate is 40% lower than the national average, with median home values around $209,115 (versus $348,000 for Texas overall)
These financial advantages allow new practice owners to invest more in equipment, staffing, and growth rather than overhead expenses.
Demographic and Cultural Considerations
Successful practice establishment in Laredo requires understanding the city’s unique demographic and cultural landscape:
- Increasing household incomes, with the 45-64 age group seeing nearly $20,000 growth over the past decade (from $55,269 in 2012 to $74,340 in 2022)
- Strong bilingual environment requiring Spanish language capabilities for staff and patient materials
- Opportunities for government contracts with agencies like Border Patrol and ICE
- Growing education system with six 6A high schools and well-rated public schools
Next Steps for Healthcare Entrepreneurs
The combination of Laredo’s underserved healthcare landscape, strong economic foundation, and lower operational costs creates a compelling opportunity for first-time practice owners. Whether you’re considering primary care or specialty services like pediatrics, gynecology, cardiology, or psychiatry, Laredo offers a market with demonstrated need and growth potential.
Understanding the location factors that predict practice success is essential when making this significant investment. At Practice Real Estate Group, we specialize in data-driven location analysis that helps healthcare professionals identify communities where their services are needed most.
If you’re exploring how to establish your first practice in a location positioned for growth, contact Practice Real Estate Group to discuss how our healthcare-specific real estate expertise can help validate your location decision.
