If you are wondering why you haven’t heard much from me last week, I was doing some market scouting in North Dakota.
I had heard the stories of the boom times there, but I had no idea that those stories are no exaggeration… This boom is everything you have heard and more.
As I pulled into Fargo just crossing the State line, the first thing I noticed was construction taking place both residential and commercial.
The next thing I noticed that absolutely shocked me was Help Wanted signs on businesses. I don’t think I have seen a Help Wanted or Hiring sign on a business in 4 years!
North Dakota actually has 2 industries doing extremely well. The first is the Bakken Oil Fields, the oil drilling operations are expected to continue on for another 10 years. (Assuming Hollywood’s new movie starring Matt Damon attacking Frac Drilling doesn’t shut down this boom..) You may have seen the bumper stickers around town, “Rockin the Bakken”. Many of our skilled trades have already moved into North Dakota for work…
The 2nd industry is the Agriculture business, they are experiencing boom times as well.
There is something else going on there, the population works hard and saves – a winning formula no matter what the market conditions are. This may be the dynamic we in Minnesota had strayed from…
With both these industries doing well, this is feeding down to all industries including services and housing. I am still pulling information together, but to sum things up housing is at emergency levels across the state. Even in Fargo…
5,000 housing units in need… ..in one community alone.
Homebuilders – might want to look into this. I haven’t decided if I will publish my figures or not, I spent some effort there and I am not licensed in North Dakota so I shouldn’t be talking North Dakota real estate…
- Black-Gold Rush Fuels Housing Demand in Oil-Rich States (builderonline.com)
- Scale and Energy Booms, Continued (krugman.blogs.nytimes.com)
- North Dakota’s Bakken Shale Boom Is Visible From Space (thinkprogress.org)
- Population Changes (economistsoutlook.blogs.realtor.org)
- 500,000 Barrels of Oil Per Day: News Headlines From The North Dakota Oil Boom (theconservativehillbilly.wordpress.com)