Evidence of Oil Boom in North Dakota, USA
North Dakota is experiencing an oil boom that everybody knows. The landscape is filled with oil rigs and miles of temporary housing while the roads are occupied by endless lines of trucks. The flares of the oil rigs colored the skyline with orange.
Impact of Dakota Oil Boom on the Population
The economic boom brought lots of jobs and lowered the unemployment rate to 1.7% (compared to the national average of 7.7%). Tens of thousands of people flocked to oil fields of North Dakota to seek their fortune in the oil rush. With the surge of these workers, its housing, water, police and emergency services are stretched to its breaking point. The queue at theatres and restaurants are longer than ever.
Impact of Dakota Oil Boom on the Property Market
However, it impacted the property market. Affordable housing becomes non-existent. Many people ended up living in their cars and trucks. Schools who want to hire new teachers have problems finding affordable housing for these teachers.
Housing costs escalate faster than income growth. The strong demand for housing by these new comers encouraged many landlords to rent houses to these oil rig workers at a much higher fees.
With housing shortage in North Dakota, property rental soar sky high. A 2-bedroom apartment which rents out for $350 a month in the past, will now cost $2,500 a month. Many local and foreigner buyers are entering into the property market to ride with wave.
The population is going to increase as long as the North Dakota oil boom last. This is a boom time for home builders but the number of housing units will still not be able to cope with demands.