Related previous post: Economic Growth in North Dakota
North Dakota is back on the news again with its strong economic growth. With the recent discovery of ways to tap the oil fields around Bakken Formation, demand has been high to hire not only skilled labor in the field, but also people from all sectors of the industry necessary to support the infrastructure of the business. From restaurant waiters to truck drivers, companies have not only been seeking to hire multitudes, but also offering lofty compensation in hope to entice people to come to oil boom-towns like Williston, ND to work. Truck drivers can make an average of $70,000 to $80,000 a year, and some fast-food restaurants have double their wages. While the numbers certainly look great, there is a severe shortage of lodging in the area. Where six-figure salaries are offered, homelessness has become a burden.
In order to sustain this economic growth, adequate housing is necessary to sustain the population growth. Unfortunately, the pace of housing has not caught up to the pace of jobs. Only about 2,000 new housing units have been built in the past year. Fortunate people have found space in "man camps" that the oil companies have built. But many have resorted to desperate measures to lodge in their cars, claiming parking lots as their street addresses. The situation is far from ideal, but the lucrative pay nevertheless has drawn many willing to sacrifice basic living conditions.
There have been efforts to invest in this area. First Millenium Construction is building a 500-person man camp in Watford City. Jarvis Green of the company expects a "200% to 300% return on the multi-million dollar investment." The investment opportunity certainly looks bright, as the discovery and the growth around Bakken Formation have only recently begun . But while the real estate growth currently lags behind the influx of people looking to take advantage of the boom, people in the oil-towns of North Dakota live within a seemingly incongruous juxtaposition: economic prosperity and homelessness.
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