Once boasting pricey rents for apartments, North Dakota has seen prices drop for rentals in the oil patch by as much as 25% in recent months. The lower prices for apartments comes directly from the recent drop in oil prices and less demand for the product.
With new apartment buildings opening in several North Dakota oil patch cities, those looking for housing are seeing prices reduced by 15 to 25% from prices just a few short months ago. As more and more developments finish building, prices are more competitive for those in the market for a new home.
The oil boom in cities like Williston, North Dakota started back in 2009 when housing was at an all-time low. Those looking for housing went through extraordinary means to have the chance to be able to simply rent a property. Building permits in 2014 were at about ten times the rate they were in 2009 but the excess building in the oil rich areas has made it a market for those looking to rent.
Despite the recent downturn in oil demand as well as prices, many developers are still confident that the jobs will be in demand for the area and a collapse of the industry will not occur. Developers are still pouring money into the area building even more apartment buildings as well as communities with shopping areas.
While developers are singing the praises of building more housing for the expected rebound of the oil production, many financial experts are stating the opposite. Many oil producing companies such as Haliburton and Weatherford have announced layoffs and cutbacks which would directly affect the market in North Dakota. Experts state that other countries such as Saudi Arabia controls the prices of crude oil as they can produce it much cheaper than any other country including the United States boom towns. If this point holds true, housing prices might drop lower or even go bust.