Midland-Odessa economy still booming

MIDLAND-ODESSA – The Midland-Odessa Regional Economic Index at the end of 2012 was 12.4 percent higher than at the end of 2011, according to Karr Ingham, the Amarillo economist who prepares the index. The index has risen more than 43 percent, an average of over 15 percent annually, in the current growth cycle.

The December increase was the 34th consecutive month-to-month increase. At year’s end, Midland reported the lowest unemployment rate in the nation, according to the U.S. Bureau of Labor Statistics.

More than $4.6 billion in taxable retail sales were made in the two cities in 2012, up 16.8 percent compared to 2011. Automotive spending also remained strong in 2012, rising 28.6 percent compared with 2011, the third year of double-digit growth

Construction spending totaled $753.6 million, up 59.6 percent compared to 2011. The cities of Midland and Odessa issued a combined 1,144 permits for new homes in 2012 and 3,035 existing homes were sold during the year. The average home sales price rose 10.8 percent to $210,086.

Hotel-motel tax collections have doubled in two years, with $10.2 million collected last year. This reflects not only business travel but the housing shortage as companies rent hotel rooms for their workers. Hotel-motel tax receipts were up more than 50 percent compared with the previous year for the second straight year.