A real estate crisis looms over North Dakota with hundreds of rental homes standing empty and with more housing projects ongoing.
Real estate developers are swallowing hard at their prospects in North Dakota. A few years removed from the oil frenzy that attracted thousands of workers to move in the area, record low oil price drops are now driving away the very same demographic that realty firms have targeted. According to The Fiscal Times, when the oil boom began, temporary housing was built for thousands of workers. Real estate developers sensed an opportunity and went to work building permanent homes.
Unfortunately, the prices of crude oil dropped by more than 50 percent over the last year which halted many drilling operations; the number of rigs currently operating has dipped to a six-year low. In the same report by The Fiscal Times, occupancy rate in Williston has gone down to 65 percent and despite the fact there will be another batch of 1,300 homes that will be built. Williston County commissioner Dan Kalil said, "We are overbuilt. I am concerned about having hundreds of $200-a-month apartments in the future."
In a report by Bloomberg, the influx of workers and the sky-high demand for housing began in 2006 when oil prices reached record highs. This made hydraulic fracturing of oil possible from an economic standpoint. Fracking, as the process is more commonly called, uses water and a mix of sand and chemicals which are pushed down through a well to pound and crack open rocks that would release crude. This prompted speculators to predict that fracking will be sustainable and will bring in big money for years to come.
People looking for jobs came in droves and the lack of proper housing forced companies to make temporary settlements that locals call "man camps." In 2011 alone, 12,000 beds were approved by Williams County commissioners.
