Two new reports paint a bright picture of the housing market in Midland and Odessa now and for the next three years.
The Local Monitor Reports, released today, cite a 7 percent increase in Midland home prices over the last 12 months, which puts the average home price at $183,463. In Odessa, prices have gone up 5 percent over the last year and the current average home price is $210,980. In the last three years, home prices were up 10 percent in both markets.
The good news doesn’t stop there. Both markets are scored significantly into the “low risk investment” category. The reports predict an 8 percent increase in home values over the next 12 months in Midland—compare that a national average of 4.6 percent. In the second and third years, prices are forecast to increase 9 percent and 9 percent, respectively.
In Odessa, they predict a 7 percent increase in home values over the next 12 months, and 9 percent in both the second the third years.
Why this rosy glow around the Midland-Odessa housing market? One word: Jobs.
Job growth is the most immediate guide to the demand for housing, and new jobs spur population in-migration, while jobs regained in a recovery create new households, the reports say.
Over the past 12 months, jobs in Midland have grown by 6 percent and in Odessa, by 6.1 percent. Compare this to a national increase of 2.2 percent and you can see why this market is rated such a low-risk investment.
The only decrease in the reports were housing permits in May 2015. In Midland, both total housing and single-family permits were down 16 percent from last year. In Odessa, there was a 38 percent decrease for both total and single-family housing permits in the same time period.
The reports say to expect a boom in rent prices, forecasting a 32 percent increase in Midland rents over the next three years, to an average of $1,781 per month. In Odessa, they predict a 33 percent increase over the next three years, to an average of $1,206 per month.