Changes in housing markets associated with rapid oil and gas growth have a significant effect on rural regions. Technological advances in horizontal drilling and hydraulic fracturing have increased the rate and capacity for oil and gas extraction. Many new or re-emerging exploration and production areas around the Permian Basin, Bakken Shale, and Eagle Ford Shale are located in rural counties far from larger centers of population.
Drilling activity brings large numbers of workers with incomes often substantially higher than those of existing residents working in other industry sectors. As activity ramps up, the surge of workers quickly fills any available motel rooms and vacant housing, creating great demand in limited markets. Sustained production from oil and gas wells results in a need for long term housing to accommodate the workers, and subsequently families, who will be in a community long term to ensure monitoring and maintenance of operations. This can create a housing development shortage not to mention drive up the median price of a home in the region.
The published report by Resources For the Future titled “The Community Impacts of Shale Gas and Oil Development” answers these questions and helps us better understand the benefits and costs of unconventional oil and gas development. Other projects and information that Resources For the Future provide information and data for are as follows:
- Identifying best-practice protocols for community–industry interactions;
- Exploring how gas and oil development impacts K-12 education
- Estimating the costs of road expenditures linked to truck traffic resulting from shale gas well development;
- Examining the risks associated with the solid waste generated from shale gas development;
- Modeling ways to minimize both producer costs and community risk of impact (via truck traffic and/or spills) for wastewater processing; and
- Modeling optimal siting of well and pipeline infrastructure to account for both private costs and potential environmental impacts.
For more local information on housing impacts, developments and market values, please visit one of these local sites.
Texas Association of Realtors
Nolan County Board of Realtors
Abilene Association of Realtors
San Angelo Association of Realtors
Odessa Board of Realtors
Permian Basin Board of Realtors (Midland)