Midland, Texas Population Boom to Cause Building Spree

September 15, 2019, Posted By: Richard Simon
Midland, Texas Population Boom

According to Economist Ray Perryman, a population boom in Midland, Texas could reach as high as to 236,500 by 2025 and 280,800 by 2030. Perryman announced these projections to Priority Midland, a forum created to allow stakeholders from all different walks in the community to participate in the decisions vital to community growth. The group commissioned Perryman to outline the impact of anticipated population growth to assist in regional planning and strategy.

Midland, Texas Population Boom 

Perryman stated the oil production environment today has changed drastically from a decade ago. He found the impact on the Midland area would include:

  • A less volatile market
  • Larger scale drilling programs
  • An increase in cycle times
  • Higher earnings
  • A larger permanent workforce and population

Production Increases

The economic impact of oil production in the region was studied looking at three oil price projections. According to Perryman’s presentation, production will increase between 2025 and 2030 for all three price scenarios.

A press release stated that “More than 85 percent of the regional gross product (value-added) in the Permian Basin oil and gas sector flows to the Midland MSA, and that percentage is expected to increase in the future under all the oil price scenario.”

Impact on Housing

According to the study, area growth and the population increase will greatly impact the demand for housing. This will include the need for as many as 16,207 single-family residences and 9,938 additional multi-family residences according to Perryman. That’s good news for builders with up to 10.5 million square feet of additional space needed to accommodate occupied real estate including not only housing but also industrial, warehouse, retail and office space.

It will also impact:

  • Education
  • Infrastructure
  • Health care capacity
  • Quality-of-place issues

Priority Midland will have a hand in community expansion plans.

Roadmap for Community

The group will provide a roadmap for the community as well as increase funding for the projects that will be required to accommodate growth. They will also be expected to reduce timeframes for start and completion dates for the projects required.

The study finds Midland growth is “at the epicenter of an economic phenomenon of global importance.” Perryman noted that although Priority Midland has the potential to impact what Midland is, they can’t impact oil production in Midland County and the Permian Basin.

According to Perryman, if a development initiative was acted upon five years ago, it would have resulted in a $22.4 billion impact on the gross product and an additional 8,000 jobs a year.

“A unique combination of events has created an enormous opportunity for the Midland area. If harnessed properly, we can prepare for the challenges and ensure the opportunities benefit the full community,” the report concluded.

The Rest of Texas

Meanwhile, Texas continues to see rapid population growth with the Dallas-Fort Worth region contributing greatly to gains. The area added 131,767 residents from 2017 to 2018, representing more than any other metropolitan area not only in Texas but the entire country.  

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