What's on the horizon?
In response to a challenge presented by Praful Thakkar I am going to share my predictions for the Cody Wyoming market in 2017.
As many may already know, Wyoming's greatest source of revenue is the energy industry which took a major hit in 2015. We were locally impacted as field workers left to find work in other states. This continued in 2016 and we saw a lot of upper-priced homes come on the market as upper-income employees moved to survive. Many of them had just purchased a 1-2 years prior! This didn't destroy our market, but we definitely saw stagnation.
As a property manager, the impact was more profound. Due to the nature of the oil field industry, many employees are shifted around the country, making it difficult for them to set roots. The good news is, that keeps my rental market full of well-paid Tenants! However, the loss of jobs in 2015 saw a slowing of the market and 2016 continued a downward trend. In the past I didn't have enough rentals to meet the demand and rates were steadily increasing. Suddenly, we saw demand dry up, rates drop, and it's been a real struggle for us.
The good news? Optimism is high nationally, but even more so in our community. The energy industry is already starting to creep back in and we expect them to be open for business by the summer. We're also expecting the start of construction on a $25 Million facility for a major employer which will bring a lot of money and renters for the next two years. This surge should result in hundreds of new employees, all earning above median income and all looking for temporary housing.
My prediction for 2017? My future is so bright, I gotta wear shades!
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