A new study shows just how much the Permian Basin has grown.
Earlier this summer, RentCafe released a list of “The Most Prosperous Cities in the U.S.” They compared growth indicators among U.S. cities between the 2000 U.S. Census Summary Files and the 2016 U.S. Census ACS 5-year estimates. In the last 16 years, Odessa has become the #1 most prosperous city in the U.S., and Midland is #10. So, just how prosperous are Odessa and Midland? Both saw positive change over these six indicators of prosperity.
Midland-Odessa has seen massive population growth.
Since 2000, the population of Midland-Odessa has ballooned to well over 300,000 people. Odessa has seen its population rise by 25%, while Midland’s rose by 35%. As U.S. crude oil production has boomed (increasing by more than 50% in 6 years), Midland-Odessa has grown with it.
Income in Midland-Odessa has risen dramatically.
The average family in the Permian Basin has seen dramatic increases in their income. The median household income for Odessa has shot up by a whopping 38%, with Midland seeing a 30% increase. Rising production and oil prices have worked in favor of economic growth in Midland-Odessa. Now, families in Midland and Odessa have more disposable income than ever, which has further spurred economic growth.
Home values are higher than ever in the basin.
The most shocking increases have been in the median home values in Odessa and Midland, which have almost doubled. The median home value for Odessa has increased by 91%, and 82% in Midland. The Midland Development Corporation summed it up best. “Home sales are at record levels by any measure and for every time frame,” in the Permian Basin. The real total dollar volume of home sales activity is up 32% in February 2018, a sharp increase from last year. Home sale prices are up by 9% for the year-to-date.
Midlanders and Odessans are more educated.
It’s not just material gains, other indicators of prosperity have risen in the Permian Basin too. The number of people in Midland and Odessa has grown significantly, up 26% in Odessa. Likely, the rise in median household income is fueled by increasing educational attainment in the basin.
Poverty rates in the basin are way, way down.
The economic growth seen in the Permian Basin has made a significant dent in the area’s impoverished population. The poverty rates in both Midland and Odessa are way down, by 34% and 36%, respectively. Is this why more Midlanders and Odessans are finishing college?
Low unemployment prevails.
Both Odessa and Midland have seen their unemployment rate fall by 25% since 2000. The significant change can be attributed to the expansion of crude oil production, and the population boom that followed. More people usually means more jobs, too. Both Midland and Odessa remain two of the Texas metro areas with the highest employment growth, 9.1%, and 7.9% respectively. This trend is expected to continue. The unemployment rate of Midland-Odessa is at an all-time low of 2.8% for February 2018, which is remarkable considering the rate was 4.6% last year.