Oil Slump Weighs On Housing Markets In Texas And North Dakota

[Purveyor]

There's a dark side to those delightfully low gas prices: Housing markets are slumping in communities that were recently flush from the U.S. shale oil fracking boom.

Home sales are down sharply this year in North Dakota and the West Texas cities of Midland and Odessa. Home sales have also slowed in El Paso, and, more recently, in Houston.

The drilling boom, driven by high oil prices and new discoveries, brought tens of thousands of workers to oil fields in several states to run drilling rigs and supply the equipment and services needed to produce crude. Then the price of oil tanked, plummeting by half in late 2014 and reaching levels this year not seen since the financial crisis. Oil companies abandoned drilling projects and began laying off workers.

"When your economic base is undergoing that kind of pressure, your local market is going to feel it," said Jim Gaines, chief economist at the Real Estate Center at Texas A&M University.

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1. That's what a boom and bust economy does

The nation was built on it. How about sustainable systems?