South Padre Island has been named by several tourist service resources as one of the top 10 beaches in the Gulf of México. White sand and turquoise-blue waters resemble those of the Caribbean sea, promoting water sport recreations that also contribute to the South Padre's real estate market success.

South Padre Island is located in Cameron County, with a population of 335,227 people as of 2000, from which 2,422 people settled in South Padre Island's population, not counting those who split their time between vacation or second-home properties, and other residences elsewhere. Officially, there were 211 households and 662 families residing on the island.

Cameron County's site is Brownsville, the closest city to the island. This fact and the shuttle services connecting with México are another fact contributing to the increased demand for real estate within the county but particularly popular heading up to South Padre Island, where the available room for expansion is located on its north end.

Oceanfront properties are the focus point of numerous baby boomers willing to retire traditionally to Florida or California, but the competitive sale prices on South Padre Island and the uncertainty of the stock market lead them to invest in Texan property instead. Real estate sales in South Padre went up 40% in comparison with the year before.

Real Estate investors are attracted by the natural beauty of South Padre's beaches, the vibrant commercial activity, and the friendly inhabitants. As of the first quarter of 2006, the island's real estates sales are up by 30% from last year, and it is predicted that resort area property will remain strong for the next years, according to the Price Waterhouse Coopers and the Urban Land Institute.

The population density on South Padre Island was 1,335.9 square miles (516.7 km square), while there were 4,685 housing units at an average density of 2,584.1 square miles (999.4 km square) with an average household size of 2.00. From 1,211 households in South Padre Island, 15.4% of them had children under the age of 18 living with them, 47.2% were married couples living together.

Average family size on the island as of 2000 was 2.54, with 35.8% of all households made up of individuals, from which 7.8% had someone age 65 or older living alone. Population at South Padre Island had a median average age of 47 years. Median income for a household of $45,417, and a median income for a family $53,250, with a per capita income of $31,708.

The racial makeup of the town was 94.59% White, 0.70% African American, 0.45% Native American, 0.21% Asian, 0.04% Pacific Islander, 2.77% from other races, and 1.24% from two or more races. 22.83% of the population is Hispanic or Latino of any race.

Males had a median income of $39,250 versus $30,028 for females. About 10.2% of families and 12.0% of the population were below the poverty line, including 11.1% of those under age 18 and 7.8% of those age 65 or over. South Padre Island became a major tourist attraction after Queen Isabella Causeway was completed in 1974, connecting the island with south Texas’s mainland.

Real estate demand includes all South Padre Island and the tip at the island barrier off the coast of southern Texas, extending from Corpus Christi Bay to Brazos Santiago Pass in the Gulf of Mexico, a pass separated from the mainland by the Laguna Madre, a 609-mile square body of water and popular spring break spot.

The Laguna Madre is a 110 mile long region consisting of sparse vegetation over sand dunes that provide an excellent setting for fishing and bird watching, where many potential home owners are seeking to buy or lease a vacation home. During 1964, Padre Island was partitioned by the construction of Port Mansfield Gulf Channel, adding a new fishing premier destination to the island now divided in two.

Concerning the racial makeup as determinant factor for some groups wanting to relocate to South Padre Island, 94.59% individuals are White, 22.83% are Hispanic or Latino of any race, 0.70% African American, 0.45% Native American, 0.21% Asian, 0.04% Pacific Islander, 2.77% from other races, and 1.24% from two or more races.

In education Point Isabel Independent School District educates children Grades K-12 at different schools located in Port Isabel, including Port Isabel Junior High school and High School, although South Padre Island residents may apply to schools in the South Texas Independent School District.