ODESSA, Texas (Big 2/Fox 24) – As the oil and gas industry continues to change in the Permian Basin so do the rent prices. A recent AdvisorSmith survey highlighting just how much influence the industry has on West Texans.
Adrian Mak, the CEO & Co-founder of AdvisorSmith said, “Two of the cities that had the biggest decrease in rent prices were Midland and Odessa. The top three cities were all cities that were primarily driven by oil and gas.”
According to Mak, when oil prices plunge people start to leave forcing rent prices down. In 2020, Midland’s rent prices have gone down by 34.8% and in Odessa, they have gone down by 38.2%.
“We’ve seen that a lot of the projects that have been planned for Midland/Odessa Permian Basin have been canceled or put on hold because economically they don’t make sense anymore,” he said.
Another factor is making the market competitive as new apartments go up. In anticipation of a booming oil and gas industry, West Texas invested in more complexes.
According to Mak, “There was a lot of new apartment construction and new apartment vacancies that were available in 2020 and that was in anticipation of a strong oil and gas market which unfortunately didn’t pan out so you have this perfect storm.”