Hobbs Construction Industry Continues to Grow Despite Oil Price Drop says Construction Reporter
Industry: Commerical Building
Hobbs has grown by 3 percent from 2012 to 2013 making it one of the fastest growing cities in the region due to oil boom with recent oil price drop slowing growth.
Hobbs, New Mexico (PRUnderground) January 26th, 2015
Hobbs, New Mexico is one of the state’s fastest growing cities with rapid growth in the constuction industry due to the New Mexico oil patch boom.
As compared to Albuquerque and Las Cruces, which grew just .3 percent from 2012 to 2013, Hobbs grew by 3.1 percent in that same span of time.
“In 2008 the price of oil per barrel was $140 and since then we have sustained about $100 per barrel, which is nice,” says Taylor. He says that in the 80’s when the price of oil fell, so did population growth for the remote town. The latest boom has continued for about 8 years.
There’s a big demand for single family housing, many wanting to buy homes according to Taylor, and not enough housing to meet the need so local hotels are often leased out for workers. Though the pace is not fast enough, new homes and apartments are under construction to meet the need.
The recent drop in oil prices from $85 in early November to just under $50 in early January has posed a new challenge to Hobbs.
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