Permits top $1B, Midland-Odessa index up 44th month

ODESSA-MIDLAND – The Cities of Odessa and Midland have issued a combined $1.126 billion in construction permits as of October 2013, according to economist Karr Ingham. The previous record of $754 million was set in 2012.

October 2013 building permit values were 140.2 percent higher than October 2012, and through the first ten months of 2013, values are up 70.6 percent compared to the same period in 2012.

The Midland-Odessa Regional economic Index posted its 44th consecutive monthly increase in October 2013, gaining 7.9 percent over October 2012. However, every month in 2013 has seen a decline in the rate of growth compared to 2012, from 13.9 percent in January 2013 to 7.9 percent in October 2013.

A slight flattening of the index began in late 2012, but given the stresses rapid economic growth has put on Midland-Odessa’s housing, labor force, roads and other infrastructure that may not be a bad thing.

Retail sales were up 10.3 percent in October 2013 compared to October 2012. Since retail sales bottomed out in 2009, spending is up about 75 percent through October 2013, which is more than double October 2009 spending.

An estimated 7,700 jobs were added to the combined metro area economy over the last 12 months, nearly 3,500 of which were with oil and gas companies. The year-over-year growth rate of nearly 5 percent continues to top all Texas, and most national metros.

Midland and Odessa issued 112 new housing permits in October 2013, up 17.9 percent from 95 in October 2012, which was up more than 50 percent compared to October 2011. To date in 2013, the two cities have issued 1,142 new housing permits, up 20.2 percent from the 950 issued during the same period in 2012.

Existing home sales remained flat, with 258 homes selling in October 2013, compared to 256 in October 2012. The October 2013 home sales price averaged $232,329, up 7.5 percent from $216,191 in October 2012.

The only negative in the October 2013 index was seen in hotel-motel tax collections, which were down 2 percent compared to October 2012. The decline suggests enough new hotel room capacity has been added to take pressure off demand for hotel rooms.