Two new reports from Local Monitor Report are projecting big increases in home values in Midland and Odessa over the next three years, almost double the national average. Prices are predicted to rise even more.
Home values for Midland are forecast to increase by 8 percent over the next 12 months—compare that to national forecast of 4.6 percent. In the second and third years, values are forecast to increase 9 percent each year, a 26 percent increase in three years.
Midland home prices are projected to increase even more, at 30 percent over the next three years. In the last 12 months, prices have gone up by 7 percent, bringing the average home price in Midland to $183,463.
In Odessa, the report is predicting a 7 percent increase in home values over the next 12 months, and 9 percent in each of the next two years. That’s a total projected increase of at least 25 percent.
Odessa home prices are forecast to increase more, at 29 percent over the next three years. Odessa home prices have increased by 5 percent in the last 12 months, and the average home price is now $210,980.
All this adds up to a “low risk” categorization by Local Monitor Report for real estate investments in both Midland and Odessa, good news for homeowners and investors, alike.
On a county-level, Martin County home values are predicted to increase at an even greater rate, 9.7 percent in the next 12 months, 11.1 percent in the second year, and 11.8 percent in the third. Midland County has slightly less of an increase projected, at 7.6 percent in the next 12 months, 8.8 percent in the second year, and 9.3 percent in the third.
Ector County is has roughly the same projections as Odessa, with 7.2 percent increase in home values predicted in the next 12 months, 8.6 percent in the second year, and 9.3 percent in the third.
The biggest reason for the increase in home values is population growth and worker demand, the reports say. Home prices have moved higher with heavy in-migration of temporary energy-sector workers in both Midland and Odessa.
The reports say to expect a boom in rentals and homes in Midland and Odessa in the next few years, citing an increase in occupied housing units, which shows new demand for owner and renter housing in both markets.