Local Market Monitor‘s forecast for the Midland-Odessa areas show sustained optimism and growth for the next three years, with home prices growing 8 percent in both West Texas cities despite job losses in the area. The report, which covers statistics from Dec. 2014, states that both Midland and Odessa are considered “low risk” markets for investment, with prices expected to increase up to 10 percent year-over-year through 2018, increasing up to 30 percent in Midland and 26 percent in Odessa during that three-year period.
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“There was no housing boom and bust in the mid-2000s,” the report says of the region, adding that growth was strong in the past year due to both a shortage in housing and the development of shale oil deposits. “Population growth is very high with the in-migration of temporary energy-related workers. Expect a boom in rentals and homes in the next few years.”
That’s good news for developers who had multifamily developments come on the market in the past few months, only to see a drop off in oil-related jobs. However, in Midland, Local Market Monitor’s financial analysis shows that the market is currently under-priced by about 24 percent relative to income. Jobs could, however, come from different sectors as some sour on failed deals in the oil and gas industry in the area. “Oil booms eventually move on, with few permanent jobs, but expect good growth the next few years,” the report states.
What are you seeing in the local economy? Are homes still in high-demand, or has the frenzy for rentals and listings waned?