Midland rents surge from last year Market data shows increase of at least 28.4 percent

Construction continues 04/30/18 on a new apartment complex off Beal Parkway between Leisure Dr and Thomason Drive. Tim Fischer/Reporter-Telegram Construction continues 04/30/18 on a new apartment complex off Beal Parkway between Leisure Dr and Thomason Drive. Tim Fischer/Reporter-Telegram Photo: Tim Fischer/Midland Reporter-Telegram Buy photo Photo: Tim Fischer/Midland Reporter-Telegram Image 1 of / 8 Caption Close Midland rents surge from last year 1 / 8 Back to Gallery

As a mother of four, Tiffany Menefee said it was heartbreaking to constantly spend time at work and away from her children. As her apartment rent continued to climb, she had trouble making ends meet and needed to work more than one job.

“I felt bad because you pay so much rent,” Menefee said. “And just to even try to keep up with it, you have to have two or three jobs. It takes so much time from your kids.”

Menefee last year turned to the Buckner Family Pathways program, which provides housing and other services for single parents. She can now work one job while taking classes and learning skills to become self-sufficient.

Figures indicate Menefee may not be alone in experiencing rent increases. Data shows local apartment rents have increased 28.4 percent or more compared to this time last year.

Rental market

Median rents in Midland are $1,160 for one-bedroom units and $1,460 for two-bedroom units, according to the May report from Apartment List. The prices are up 1.8 percent over the past month and represent a 28.4 percent change year-over-year.

“So much of it is driven by cyclical booms and busts in the oil market,” said Chris Salviati, a housing economist with Apartment List.

Salviati previously told the Reporter-Telegram that areas with jobs create demand for new housing and that prices rise when housing stock doesn’t increase to meet that demand.

April marks the third straight month of increases since a decline in January, according to Apartment List data. Salviati said people tend to move in the spring and summer, and properties sometimes lower winter prices in response to that market change.

Another source, ALN Apartment Data, reports a 34.1 percent rise in effective rent in the Midland-Odessa market compared to last year. It lists average effective rent for conventional properties at $1,379.

Also, ALN figures show occupancy for the Midland-Odessa market stands at 95.6 percent — a 6.2 percent annual change — while properties are offering 84.7 percent fewer leasing specials.

“Occupancies are going up, and concessions are going down,” said Jordan Brooks, analytics specialist for ALN. “That tells us the concessions that are being offered are not what’s driving demand.”

Brooks said having an occupancy jump of about 6 percent year-over-year is somewhat unusual when new properties enter a market.

The two most recent permits that resulted in completed apartment complexes were issued in 2015, according to information provided by the city of Midland. Those projects added 470 apartment units combined.

Permits have also been issued for three complexes that will bring 505 combined units upon completion. Another business was issued a permit in 2015 but didn’t follow through, according to the information.

Local impact

For now, some people who are navigating the local rental market have trouble finding places to live. Kat Hernandez, director of social services at Salvation Army of Midland, said clients find that many low-income apartments are booked.

She also said the organization’s shelter recently has been housing people who come to Midland for work. It’s a trend she noticed during the last economic boom.

“We saw a lot of people moving to Midland,” Hernandez said. “We were constantly full.”

One person who recently settled in the area was Victoria Tu’ua. She returned to West Texas one year ago and stayed in motels with her three children.

Tu’ua spent time looking for apartments and seeking public housing assistance. She said there are misconceptions surrounding homelessness and that anyone can face similar circumstances.

“You have to think about other people that are out here, that as the prices go higher, they could be in our same situation,” she said.

Tu’ua in July connected with Family Promise of Midland, which helps low-income families gain independence. Now, she’s studying to become a social worker in hopes of making an impact in the lives of others.

“I think of all the things that we’ve been through, and I’ve always wanted to be the one to be able to help out,” Tu’ua said.

Life experiences have also influenced the career path of Angela Villalobos, who hopes to go into real estate. After struggling to afford an apartment for her family, she wanted to improve her situation and guide others through housing regulations.

“There’s a lot of oil, so they think everybody’s supposed to make this much money to be able to live,” said Villalobos, a mother of five. “But not everybody can actually make that much money. Usually it’s a combined income of you and your spouse, and a lot of us don’t have that.”

Villalobos lived for about one month with her family in a travel trailer behind a friend’s house. She was later accepted into Family Promise’s transitional housing program.

Tom Miller, executive director of the nonprofit, said the springtime is usually slow because people are using money from tax returns. But this year, he said inquiries are up because families are realizing the extra money still won’t allow them to afford rent. The nonprofit’s program helps participating parents through the budgeting process.

Miller said that during the last economic boom, there was a shortage of all housing options — not only affordable ones — and that some families who found places to live couldn’t afford rent.

“It’s a double-edged sword in Midland because we are a petroleum industry community,” Miller said. “But then we also need the service industry — the doctor’s offices, the restaurants.”

For Midlanders who have trouble paying rent, some local groups offer services. Renters seeking assistance from the Deacons Fund at First Presbyterian Midland are asked to be responsible for at least 10 percent of the amount due.

Carl Moore, benevolence counselor, has noticed an increase in calls from people whose landlords increased rent, and he said there is also demand from those facing other situations.

“We’re getting some people who’ve lost their jobs,” Moore said. “But a lot of people are moving into town and are looking to get their first month’s rent and deposit taken care of.”

Moore thinks it’s a problem when some longtime renters can no longer afford to live in Midland. During the last economic boom, he said some were compelled to move away.

“At times, I wish there were people who would remember the [purpose] of an apartment complex is to provide places for people to live,” Moore said. “And it’s difficult to find that when the rents have gotten so high that you practically have to work in the oil business.”