With Western Texas Intermediate oil hovering around $45 a barrel, folks have been speculating about new home construction in Midland-Odessa and how layoffs and budget cuts might affect the spectacular boom of the past few years.
But while economists might raise a red flag, local homebuilders say pent-up demand and a more diversified economy are keeping the phones ringing and people signing on for new home construction.
“The demand is still the same as it has always been—everyone wants their home built yesterday,” said KC White, owner and president of KC White Homes, Inc. “More people outside of the oil world are calling my phone. There are more than just oilfield-related jobs here.”
Last year, 917 single-family building permits were issued to homebuilders for new residences in Midland, and 430 in Odessa, according to the U.S. Census Bureau and Real Estate Center at Texas A&M University. With the ink still wet on those contracts, builders don’t see a slowdown anytime soon. Many even have a waiting list.
Tight inventory is one of the biggest factors at play. With only 3.8 months of inventory in November 2014 (the most recent data available), the average home price in Midland was $301,500. Odessa had an even tighter market in that same month, with only 2.4 months inventory, and an average home price of $231,100. Jump to read more!