Odessa Market Report 2011

Page 1


2011 Texas Metro Market Overview

Odessa

Table of Contents Introduction.............................................................................................. 1 MSA Map................................................................................................. 2 Demographics......................................................................................... 3 Education................................................................................................ 7 Employment............................................................................................ 8 Economy............................................................................................... 16 Infrastructure......................................................................................... 17 Multifamily.............................................................................................. 20 Housing................................................................................................. 21 Hotel...................................................................................................... 27 Real Estate Center................................................................................ 28

Market reports are updated annually. The Real Estate Center also publishes NewsTalk Texas, a compilation of market news, which is updated continuously throughout the year. It allows market analysts to access the most current information available. For more current information about this Metropolitan Statistical Area (MSA) or any of the other Texas MSAs, please go to http://recenter.tamu.edu/newstalk/. Note: In 2009, two MSA names were changed—Austin-Round Rock is now Austin-Round Rock-San Marcos, and San Antonio is now San Antonio-New Braunfels. In 2003, the U.S. Census Bureau revised its definition of counties included in some Texas MSAs. As a result, most information presented in this report reflects Texas’ 2003 MSA definition. However, some of the data reported to the Center are based on the Bureau’s 1999 definition. Data using the 1999 MSA definition are stated where applicable.

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2011 Texas Metro Market Overview Introduction

Odessa

Odessa is at the industrial and commercial crossroads of West Texas. Neighbor to Midland, this city was named the fourth top city in America by Inc. com and newgeography.com in their 2008 survey of the “Best Cities for Doing Business.” The city is about halfway between Dallas–Fort Worth and El Paso and is the Ector County seat. The metropolitan area is within the 100-mile– radius Permian Basin. The region is in the heart of the largest single source of oil and gas deposits in the United States. The local economy is heavily dependent on the oil and gas industry.

The University of Texas of the Permian Basin (UTPB) is home to Odessa’s Presidential Museum and Leadership Library. It is the only facility of its kind in the United States dedicated to the office of the Presidency, not just a single president. Odessa College boasts notable alumni including Ty Murray, seven-time all-around world professional rodeo champion.

Quick Facts MSA Land Area (2009 definition) 901.68 square miles 2010 Population Density

152.1 people per square mile

Counties

Ector Area Cities and Towns

Gardendale, Goldsmith, Greenwood, Odessa, Notrees, Penwell, Pleasant Farms This report’s MSA data reflects either 1999 or 2009 MSA definitions based on data availability. Use of 1999 definition is noted where applicable. Sources: U.S. Census Bureau and Real Estate Center at Texas A&M University

The La Entrada al Pacífico trade corridor is a route from the Pacific Ocean port of Topolobampo in the Mexican state of Sinaloa to Texas and beyond by way of the Midland-Odessa area. Designated as “Trade Corridor 56” by the Intermodal Surface Transportation Efficiency Act, the corridor is a joint project between Mexico and the United States. Sources: Odessa Convention & Visitors Bureau, Odessa Development Corporation and Midland Economic Development Corporation

Microsoft product screen shot reprinted with permission from Microsoft Corp.

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2011 Texas Metro Market Overview

MSA Map

Odessa

Metropolitan Statistical Areas (MSAs) DALLAM

SHERMAN

HANSFORD

OCHILTREE

LIPSCOMB

HARTLEY

MOORE

HUTCHINSON

ROBERTS

HEMPHILL

GRAY

WHEELER

DONLEY

COLLINGSWORTH

2

POTTER

CARSON

RANDALL

ARMSTRONG

OLDHAM

DEAF SMITH

PARMER

CASTRO

SWISHER

BAILEY

LAMB

HALE

BRISCOE

HALL

CHILDRESS HARDEMAN

COCHRAN

TERRY

GAINES

ANDREWS

9

EL PASO

LOVING

WINKLER

LUBBOCK

LYNN

DAWSON

CROSBY

GARZA

KENT

SCURRY

HOWARD

17 16 ECTOR

DICKENS

CULBERSON

WARD

CRANE

REAGAN IRION

REEVES

JONES

SHACKLEFORD STEPHENS

1

NOLAN

COKE

18

RUNNELS

COOKE

WISE

JACK

DENTON

PARKER

EASTLAND

ERATH

8

TARRANT

PALO PINTO

JOHNSON

COLLIN

HAMILTON

MCCULLOCH

SAN SABA

MASON

LLANO

MENARD

VAL VERDE

KERR

EDWARDS

HAYS

REAL

KENDALL BANDERA

KINNEY

UVALDE

MEDINA

ZAVALA

DIMMIT

GUADALUPE

Prepared by the Labor Market and Career Information Department, TWC Edited by Real Estate Center at Texas A&M University

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HOUSTON

LEON ROBERTSON

6

MADISON

GRIMES WASHINGTON AUSTIN

WALLER

DE WITT

GOLIAD

7

JIM WELLS

NUECES

STARR

BROOKS

15

HIDALGO

KENEDY

WILLACY

5

CAMERON

CALHOUN

MATAGORDA

4

BRAZORIA

ORANGE

JEFFERSON

CHAMBERS

FORT BEND

JACKSON

VICTORIA

REFUGIO ARANSAS

KLEBERG

JIM HOGG

10

LIBERTY

HARRIS

23

JASPER NEWTON

HARDIN MONTGOMERY

GALVESTON

KARNES

TYLER

SAN JACINTO

BURLESON

SAN PATRICIO

DUVAL

POLK

WALKER

FAYETTE

BEE

SABINE

TRINITY

BRAZOS

BASTROP

SAN AUGUSTINE

ANGELINA

GONZALES

WILSON

WEBB

ZAPATA

NACOGDOCHES

WHARTON

MCMULLEN

12

SHELBY

FREESTONE

LEE

LIVE OAK

1. Abilene 14. Lubbock 2. Amarillo 15. McAllen-Edinburg-Mission 3. Austin-Round Rock-San Marcos 16. Midland 4. Beaumont-Port Arthur 17. Odessa 5. Brownsville-Harlingen 18. San Angelo 6. College Station-Bryan 19. San Antonio-New Braunfels 7. Corpus Christi 20. Sherman-Denison 8. Dallas-Fort Worth-Arlington 21. Texarkana 9. El Paso 22. Tyler 10. Houston-Sugar Land-Baytown 23. Victoria 11. Killeen-Temple-Fort Hood 24. Waco 12. Laredo 25. Wichita Falls 13. Longview

ANDERSON

PANOLA

CHEROKEE

LAVACA

ATASCOSA

HARRISON

RUSK

COLORADO

19

GREGG

LIMESTONE

BELL

CALDWELL

FRIO

LA SALLE

3

CASS MARION

22 13

NAVARRO

COMAL

BEXAR

MAVERICK

TRAVIS

MORRIS

UPSHUR

SMITH

VAN ZANDT

MILAM

KIMBLE

WOOD

KAUFMAN ELLIS

WILLIAMSON

BLANCO

CAMP RAINS

FALLS

BURNET

GILLESPIE

BREWSTER

11

LAMPASAS

HOPKINS

ROCKWALL

MCLENNAN

CORYELL

CONCHO

BOWIE

FRANKLIN TITUS

HUNT

DALLAS

24

BROWN

21

RED RIVER

DELTA

HENDERSON

BOSQUE

MILLS

CROCKETT SUTTON

COLEMAN

LAMAR

FANNIN

SOMERVELL

COMANCHE

TERRELL

PRESIDIO

MONTAGUE

HOOD

CALLAHAN

TAYLOR

TOM GREEN

SCHLEICHER PECOS

JEFF DAVIS

THROCKMORTON YOUNG

20

GRAYSON

CLAY

HILL STERLING

MIDLAND

UPTON

HASKELL

FISHER

MITCHELL

GLASSCOCK HUDSPETH

STONEWALL

25

ARCHER

BAYLOR

KNOX

KING

WICHITA

WILBARGER

FOARD

BORDEN

MARTIN

COTTLE

MOTLEY

14

HOCKLEY

YOAKUM

FLOYD


2011 Texas Metro Market Overview

Odessa

Demographics Odessa MSA Population

Population

Percent Change

Year

Population*

1999

122,450

-

2000

121,123

2001

Select Area Cities City

2000

2010

Growth 2000–2010 (in percent)

-1.1

Odessa

90,943

99,940

9.9

120,866

-0.2

Source: U.S. Census Bureau

2002

122,361

1.2

2003

122,948

0.5

2004

124,293

1.1

2005

125,339

0.8

2006

127,462

1.7

2007

129,570

1.7

2008

131,941

1.8

2009

134,625

2.0

2010

137,130

1.9

*July 1 population estimates, excepts 2000 and 2010

Household Composition Ector Midland County County Average household size

2.72

2.68

2.74

Population younger than 18 (in percent)

30.4

30.2

28.2

Population 65 and older (in percent)

10.9

11.6

9.9

Source: U.S. Census Bureau 2000 (1999 definition)

Source: U.S. Census Bureau

Texas

Distribution by Race and Hispanic or Latino Origin (in percent) Ector County

Midland County

Texas

White

73.7

77.3

71.0

Black

4.6

7.0

11.5

Asian

0.6

0.9

2.7

American Indian

0.8

0.6

0.6

Other

17.4

12.2

11.7

Two or more races*

2.8

1.9

2.5

Hispanic (of any race)

42.4

29.0

32.0

Source: U.S. Census Bureau 2000 (1999 definition)

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2011 Texas Metro Market Overview

Odessa

Texas Metropolitan Area Population Growth Forecast, 2000–2020 Laredo McAllen-Edinburg-Mission Austin-Round Rock-San Marcos Brownsville-Harlingen Dallas-Fort Worth-Arlington Houston-Sugar Land-Baytown El Paso Killeen-Temple-Fort Hood Texas Corpus Christi San Antonio-New Braunfels College Station-Bryan Amarillo Victoria Odessa Waco Tyler Midland Longview Lubbock San Angelo Sherman-Denison Abilene Beaumont-Port Arthur Wichita Falls Texarkana 0%

10%

20%

30%

40%

50%

60%

70%

Source: Texas State Data Center – Scenario 0.5 (February 2009 projection)

Odessa MSA Projected Population Year

Texas State Data Center (Scenario 0.5)

Texas Water Development Board

2000

121,123

121,123

2005

126,645

-

2010

132,775

132,759

2015

138,750

-

2020

143,926

144,073

2025

148,857

-

2030

153,884

154,160

2035

158,776

-

2040

163,093

163,141

Sources: Texas State Data Center (February 2009 projection) and Texas Water Development Board (July 2010 projection)

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80%

90%


2011 Texas Metro Market Overview

Odessa

Texas Metropolitan Area Population Change 2000

2010

Percent Change

1,249,763

1,716,289

37.3

McAllen-Edinburg-Mission

569,463

774,769

36.1

Laredo

193,117

250,304

29.6

Houston-Sugar Land-Baytown

4,715,407

5,946,800

26.1

San Antonio-New Braunfels

1,711,703

2,142,508

25.2

184,885

228,660

23.7

Dallas-Fort Worth-Arlington

5,161,544

6,371,773

23.4

Killeen-Temple-Fort Hood

330,714

405,300

22.6

Brownsville-Harlingen

335,227

406,220

21.2

Metropolitan Area Austin-Round Rock-San Marcos

College Station-Bryan

Tyler

174,706

209,714

20.0

Midland

116,009

136,872

18.0

El Paso

679,622

800,647

17.8

Texas

20,851,820

24,304,290

16.6

Lubbock

249,700

284,890

14.1

Odessa

121,123

137,130

13.2

Longview

194,042

214,369

10.5

Amarillo

226,522

249,881

10.3

Waco

213,517

234,906

10.0

Sherman-Denison

110,595

120,877

9.3

Corpus Christi

403,280

428,185

6.2

San Angelo

105,781

111,823

5.7

Texarkana

129,749

136,087

4.9

Victoria

111,663

115,384

3.3

Abilene

160,245

165,252

3.1

Beaumont-Port Arthur

385,090

388,745

0.9

Wichita Falls

151,524

151,306

-0.1

Source: U.S. Census Bureau

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2011 Texas Metro Market Overview

Odessa

Interstate and Cross-Border

2010 Migration Patterns – traffic flow by state/province Based on 74,541 Interstate Household Goods Moves from January 1, 2010 through December 31, 2010

OREGON

SOUTH CAROLINA

TEXAS

Year

Inbound

Outbound

Year

Inbound

Outbound

Year

Inbound

Outbound

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

658 721 987 1,026 1,239 1,421 1,298 1,118 1,198 1,504

592 598 682 818 721 799 994 967 937 1,227

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

1,592 1,368 1,825 2,023 2,087 2,092 1,909 1,637 1,414 1,438

1,642 1,337 1,538 1,757 1,710 1,856 1,780 1,526 1,385 1,630

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

7,248 6,833 8,629 8,831 9,714 9,525 8,644 8,075 7,723 9,030

5,322 4,773 6,442 6,665 6,812 7,210 7,442 6,920 6,778 7,584

Inbound

Outbound

SOUTH DAKOTA

PENNSYLVANIA Year

Inbound

Outbound

Year

- 6 - Outbound Inbound

UTAH Year


2011 Texas Metro Market Overview

Odessa

Education Educational Attainment, Persons Age 25 and Older (in percent) Odessa MSA County

High school Some college, Associate’s Bachelor’s graduate no degree degree degree

Master’s degree

Doctorate degree

Ector

26.8

23.8

5.4

8.6

2.3

0.2

Texas

24.8

22.4

5.2

15.6

5.2

0.8

Source: U.S. Census Bureau 2000

Educational Level, Persons Age 25 and Older (in percent) Odessa-Midland MSA

Texas

High School Graduate or Higher

73.5

75.7

Bachelor’s Degree or Higher

18.4

23.2

Level of Education

Source: U.S. Census Bureau, 2000 (1999 definition)

Local College and University Enrollment, Fall Semester School

2006

2007

2008

2009

2010

Midland College

5,798

5,720

5,784

6,220

6,344

Source: Texas Higher Education Coordinating Board

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2011 Texas Metro Market Overview

Odessa

Employment 70,000

Average Annual Distribution of Employment in Major Categories Odessa MSA

Total Annual Jobs

60,000 50,000 40,000 30,000

20,000 10,000 0

2006

2007

2008

Mining, Logging and Construction Trade, Transportation and Utilities Financial Activities Educational and Health Services Government

2009

2010

Manufacturing Information Professional and Business Services Leisure and Hospitality

Data as of March 2011. For the latest data, please see the Real Estate Center's Monthly Review of the Texas Economy. Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

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2011 Texas Metro Market Overview

Odessa

Metropolitan Area Nonfarm Employment Change 2000–2010 Sherman-Denison Wichita Falls Beaumont-Port Arthur Victoria San Angelo Dallas-Fort Worth-Arlington Waco Abilene Lubbock Texarkana Amarillo Corpus Christi El Paso Texas Tyler Houston-Sugar Land-Baytown San Antonio-New Braunfels Austin-Round Rock-San Marcos Longview Brownsville-Harlingen College Station-Bryan Killeen-Temple-Fort Hood Odessa Midland Laredo McAllen-Edinburg-Mission -10%

0%

10%

20%

30%

40%

50%

Data as of March 2011. For the latest data, please see the Real Estate Center's Monthly Review of the Texas Economy. Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

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2011 Texas Metro Market Overview

Odessa

Texas Metropolitan Area Nonfarm Employment Change Metropolitan Area

2000

2010

Percent Change

McAllen-Edinburg-Mission

157,100

219,400

39.7

Laredo

68,800

87,800

27.6

Midland

53,400

68,100

27.5

Odessa

49,900

60,300

20.8

Longview

83,200

95,500

14.8

Killeen-Temple-Fort Hood

108,500

127,800

17.8

College Station-Bryan

82,900

96,900

16.9

Austin-Round Rock-San Marcos

672,700

766,500

13.9

Brownsville-Harlingen

109,700

126,400

15.2

Houston-Sugar Land-Baytown

2,254,600

2,529,200

12.2

San Antonio-New Braunfels

745,200

841,400

12.9

Tyler

83,900

92,300

10.0

Texas

9,426,700

10,342,000

9.7

Texarkana

53,000

56,400

6.4

El Paso

256,400

277,900

8.4

Corpus Christi

164,900

178,100

8.0

Lubbock

121,700

128,600

5.7

Amarillo

102,900

109,700

6.6

2,763,200

2,862,400

3.6

Waco

101,100

105,500

4.4

Abilene

61,900

64,900

4.8

Victoria

49,800

49,000

-1.6

San Angelo

44,300

44,600

0.7

Dallas-Fort Worth-Arlington

Beaumont-Port Arthur

161,800

158,500

-2.0

Wichita Falls

61,200

58,100

-5.1

Sherman-Denison

45,900

42,500

-7.4

Data as of March 2011. For the latest data, please see the Real Estate Center’s Monthly Review of the Texas Economy. Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

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2011 Texas Metro Market Overview

Odessa

Average Annual Nonfarm Employment Growth Odessa MSA

8.0

6.7

6.3

Percent Change from Previous Year

6.0 4.0 2.0 0.0

4.2

3.1 1.4

2.4 0.0

1.0

0.4

0.0

-2.0 -4.0 -5.8

-6.0 -8.0 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Data as of March 2011. For the latest data, please see the Real Estate Center's Monthly Review of the Texas Economy. Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

Average Annual Nonfarm Employment Odessa MSA Year

Employment

Percent Change

2000

49,900

-

2001

51,100

2.4

2002

51,100

0.0

2003

51,300

0.4

2004

52,000

1.4

2005

53,600

3.1

2006

57,000

6.3

2007

59,400

4.2

2008

63,400

6.7

2009

59,700

-5.8

2010

60,300

1.0

Data as of March 2011. For the latest data, please see the Real Estate Center’s Monthly Review of the Texas Economy. Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

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2010


2011 Texas Metro Market Overview

Odessa

Average Annual Unemployment Rate Odessa MSA

9.0

8.1

8.0 7.8

7.0

6.6

6.6 5.8

Percent

6.0 5.0

4.5

4.9

3.9

4.0 3.0

3.4

3.5

2007

2008

2.0 1.0 0.0 2001

2002

2003

2004

2005

2006

2009

Data as of March 2011. For the latest data, please see the Real Estate Center's Monthly Review of the Texas Economy. Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

Average Annual Employment Growth by Industry Odessa MSA

Texas

Employment Growth 2010 (Percent Change)

1.0

0.3

Unemployment Rate 2010 (Percent Change)

7.8

8.2

Net Job Change in 2010

600

34,800

2010 Employment Growth by Sector (Percent Change) Mining, Logging and Construction

5.5

-3.0

Manufacturing

-2.4

-3.2

Trade, Transportation and Utilities

-1.5

3.1

Information

0.0

-4.4

Financial Activities

0.0

-0.9

Professional and Business Services

2.6

1.7

Educational and Health Services

1.8

3.8

Leisure and Hospitality

-1.7

0.1

Government

1.0

2.1

Data as of March 2011. For the latest data, please see the Real Estate Center’s Monthly Review of the Texas Economy. Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

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2010


2011 Texas Metro Market Overview

Odessa

2009 Average Hourly Wage ($) by MSA

Austin-Round Rock-San Marcos Houston-Sugar Land-Baytown Dallas-Fort Worth-Arlington Texas Midland Beaumont-Port Arthur College Station-Bryan Odessa San Antonio-New Braunfels Amarillo Longview Lubbock Killeen-Temple-Fort Hood Tyler Victoria Waco Texarkana Corpus Christi Sherman-Denison San Angelo Wichita Falls El Paso Abilene Laredo Brownsville-Harlingen McAllen-Edinburg-Mission

15.41 14.94 14.93

10.00

12.00

14.00

18.65 18.57 18.40 18.25 17.55 17.34 17.18 17.15 17.08 17.06 17.03 16.94 16.93 16.69 16.52 16.50 16.37 16.23

16.00

Note: Data reflect most recent year surveyed Source: Bureau of Labor Statistics

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18.00

19.76 19.60

20.00

21.72 21.58 21.46

22.00

24.00


2011 Texas Metro Market Overview

Odessa

Top Ten Employers Odessa Employer

Category

Employees

Ector County ISD

Education

3,526

Medical Center Hospital

Health Care

1,700

Odessa Regional Medical Center

Health Care

840

City of Odessa

Government

839

Walmart

Retail

832

Saulsbury Companies

Electric & Construction

810

Halliburton Services

Oil & Gas

750

Ector County

Government

658

Nurses Unlimited Inc.

Medical

597

Investment Corp. of America

Financial

507

Source: Odessa Development Corporation, September 2010

Top Ten Private Employers Odessa Employer

Category

Employees

Odessa Regional Medical Center

Medical

840

Walmart

Retail

832

Saulsbury Companies

Electric & Construction

810

Halliburton Services

Oil & Gas

750

Nurses Unlimited Inc.

Medical

597

Investment Corp. of America

Financial

507

Weatherford CPS

Oil & Gas

430

Bobby Cox Companies Inc.

Retail/Restaurants

405

Family Dollar

Distribution

380

Albertson’s

Retail Grocery

325

Source: Odessa Development Corporation, September 2010

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2011 Texas Metro Market Overview

Odessa MSA

Odessa

Decem ber-2010

(Ector)

Annual Growth Rate for Total NonAgricultural Employment

Industry Composition

Mining, Logging, & Const 18%

Govt. 17%

10.0%

59,600 Jobs

5.0% 0.0% -5.0% -10.0%

Mfg 7%

50,400 Jobs

Monthly Change by Industry

200

Dec-10

Apr-10

Aug-10

Dec-09

Apr-09

Aug-09

Dec-08

Apr-08

Aug-08

Dec-07

Apr-07

Aug-07

Dec-06

Apr-06

Aug-06

Dec-05

0 (500)

Trade, Tranp & Util 23%

(1,000)

Mo n t h ly

Ch an g e

Dec-2010

No v-2010

Dec-2009

Act u al

An n u al Ch an g e Size

%

Act u al

%

Class

Dec-10

Oct-10

Nov-10

as o f Ju n e 2010

Size Class of Indust ries

Em ploym ent by Indust ry

Sep-10

Aug-10

Jul-10

Jun-10

May-10

Apr-10

Mar-10

Informat. 1%

Feb-10

Jan-10

(1,500) Dec-09

Financial Activ 4%

Apr-05

500

0

Educ & Health Svcs Prof, & 10% Bus Svcs 6%

Monthly Change in Total Nonag Employment

1,000

100

Leisure & Hosp 10%

Aug-05

Dec-04

Apr-04

Aug-04

Dec-03

Apr-03

Aug-03

Dec-02

Apr-02

Aug-02

Dec-01

Apr-01

Dec-00

-15.0% Aug-01

Other Services 5%

Em p lo yees

Nu m b er o f

Em p lo ym en t

% o f To t al

Per Fir m

Fir m s

in Size Class

Em p lo ym en t

To t al No n ag r icu lt u r al

59,600

59,500

58,100

100

0.2%

1,500

2.6%

9

1000+

3

7332

12.5%

Min in g , Lo g g in g , & Co n st

10,800

10,800

10,300

0

0.0%

500

4.9%

8

500-999

8

5443

9.3%

Man u f act u r in g

3,900

3,900

3,800

0

0.0%

100

2.6%

7

250-499

9

2878

4.9%

Tr ad e, Tr an sp ., & Ut ilit ies

13,100

13,000

13,000

100

0.8%

100

0.8%

6

100-249

69

10265

17.5%

600

600

600

0

0.0%

0

0.0%

5

50-99

127

8938

15.2%

Fin an cial Act ivit ies

2,600

2,600

2,600

0

0.0%

0

0.0%

4

20-49

358

10682

18.2%

Pr o f es., & Bu sin ess Svcs

3,400

3,400

3,300

0

0.0%

100

3.0%

3

10-19

482

6613

11.3%

Ed u cat io n & Healt h Svcs

5,900

5,900

5,700

0

0.0%

200

3.5%

2

5-9

612

4150

7.1%

Leisu r e & Ho sp it alit y

6,100

6,100

5,800

0

0.0%

300

5.2%

1

1-4

1100

2436

4.1%

Ot h er Ser vices

3,200

3,200

3,100

0

0.0%

100

3.2%

0

0

208

0

0.0%

Go ver n m en t

10,000

10,000

9,900

0

0.0%

100

1.0% TOTAL

2976

58737

100.0%

In f o r m at io n

Com m ent s f or Decem ber 2010

2nd Quarter Wages by Industry (in millions)

Total Nonagricultural Employment in the Odessa MSA gained 100 jobs in December. This is the fifth consecutive monthly gain for the MSA. Over the past twelve months, the MSA gained 1,500 jobs for an annual growth rate of 2.6 percent. Retail Trade gained 100 positions in connection with the holiday shopping season. All other industries had no over-the-month change for December.

Mining & Logging $106.2

Govt $100.7

Other Svcs $19.9 Const $62.6

Leisure & Hosp $22.6 Educ & Health Svcs $43.8

Manuf $51.9

Prof & Bus Svcs $41.5 Financial Activities Information $28.1 $5.8

Trade, Trans, & Util $130.9

Unem ploym ent Inf orm at ion (all est im at es ar e in t h o u san d s) Odessa MSA C.L.F.

Em p .

Un em p . % Rat e

Dec-10

71.1

66.1

5.0

No v-10

71.4

66.0

5.4

Dec-09

70.3

64.2

6.1

Texas (Act u al) C.L.F.

Em p . Un em p .% Rat e

7.0

12,201.4

11,223.8

977.6

7.5

12,226.5

11,214.4

1,012.1

8.7

12,027.7

11,069.9

957.8

Source: Texas Workforce Commission

- 15 -

Unit ed St at es (Act u al) C.L.F.

Em p .

Un em p .

% Rat e

8.0

153,156.0

139,159.0

13,997.0

9.1

8.3

153,698.0

139,415.0

14,282.0

9.3

8.0

152,693.0

137,953.0

14,740.0

9.7


2011 Texas Metro Market Overview

Odessa

Economy 2009 Gross Retail Sales Per Capita ($) Dallas-Plano-Irving MD Midland Houston-Sugar Land-Baytown Odessa Lubbock Amarillo Tyler Longview Texas Killeen-Temple-Fort Hood Austin-Round Rock-San Marcos Fort Worth-Arlington MD Beaumont-Port Arthur Victoria Abilene Waco San Angelo San Antonio-New Braunfels College Station-Bryan Laredo Wichita Falls Sherman-Denison Corpus Christi McAllen-Edinburg-Mission El Paso Texarkana Brownsville-Harlingen 5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

21,000

Note: Data reflect most recent year surveyed; MD=subset of an MSA Source: Texas Comptroller's Office

Gross Retail Sales Odessa MSA Year

Total Sales*

Sales per Capita

1999

$1,305,096,621

$10,658

2000

$1,425,344,239

$11,768

2001

$1,576,728,511

$13,045

2002

$1,410,034,999

$11,524

2003

$1,507,156,839

$12,258

2004

$1,560,547,775

$12,555

2005

$1,867,146,500

$14,897

2006

$2,218,178,344

$17,403

2007

$2,464,029,695

$19,017

2008

$2,705,404,820

$20,505

$2,048,468,763

$15,216

State Average 2009:

$14,462

2009

*Update current year only. See Texas Comptroller site for updated data in previous years: https://ourcpa.cpa.state.tx.us/allocation/HistSales.jsp Source: Texas Comptroller’s Office

- 16 -


2011 Texas Metro Market Overview

Odessa

Infrastructure Midland Airport Passengers Airport

2006

2007

2008

2009

2010

Midland International Airport Enplaned

473,851

491,321

487,403

420,845

442,543

Deplaned

469,207

486,010

481,961

417,695

438,286

Total

943,058

977,331

969,364

838,540

880,829

Source: Midland International Airport

Midland Airport Cargo Statistics (in pounds) Airport

2006

2007

2008

2009

2010

Enplaned

3,122,293

3,181,692

3,194,802

2,303,193

2,658,204

Deplaned

4,484,639

4,596,756

4,616,503

3,607,316

4,271,470

Total

7,606,932

7,778,448

7,811,305

5,910,509

6,929,674

Midland International Airport

Source: Midland International Airport

- 17 -


2011 Texas Metro Market Overview

Odessa

Midland Airline Boardings and Cargo Statistics Totals

1,000,000

977,331

950,000

9,000,000

969,364

8,000,000

943,058

7,000,000

900,000 880,829

5,000,000 4,000,000

850,000

838,540

3,000,000 2,000,000

800,000

1,000,000 750,000

2006

2007

2008 Passengers

Source: Midland International Airport

- 18 -

2009 Cargo

2010

0

Cargo (in pounds)

Passengers

6,000,000


2011 Texas Metro Market Overview

- 19 -

Odessa


2011 Texas Metro Market Overview

Odessa

Multifamily Odessa–Permian Basin Apartment Statistics 2010 Odessa/ Texas Metro Permian Basin Average Average rent per square foot

$0.73

$0.85

Average rent for units built since 2000

$0.53

$0.94

Average occupancy

95.5%

92.3%

Average occupancy for units built since 2000

96.9%

94.5%

Total units*

8,426

1,538,182

588

306,374

Total units built since 2000* *As of December 2010 Source: Apartment MarketData Research

5+ Multifamily Building Permits Odessa MSA

500

460

440

450 400 350

Units

300 250

224

200 150 100 50 0

0

2006

0

2007

2008

Source: U.S. Census Bureau

- 20 -

2009

2010


2011 Texas Metro Market Overview

Odessa

Housing Home Price Appreciation Odessa MSA The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 25.0%

Change from Previous Year

20.0% 15.0% 10.0% 5.0% 0.0%

Odessa

Texas

4Q-10

4Q-09

4Q-08

4Q-07

4Q-06

4Q-05

4Q-04

4Q-03

4Q-02

4Q-01

-10.0%

4Q-00

-5.0%

USA

Source: Federal Housing Finance Agency

National Home Price Appreciation

The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 40.0%

20.0% 10.0% 0.0% -10.0%

4Q-07

Texas

USA

Source: Federal Housing Finance Agency

- 21 -

4Q-10

4Q-06

Florida

4Q-09

4Q-05

California

4Q-08

4Q-04

4Q-03

4Q-02

-30.0%

4Q-01

-20.0%

4Q-00

Change from Previous Year

30.0%


2011 Texas Metro Market Overview

Odessa

Housing Affordability Index (HAI) 3Q 2010 MLS

MedianPriced Home

Required Income to Qualify

FY 2010 Median Family Income

HAI*

HAI for First-Time Homebuyers**

Odessa

$139,100

$27,831

$53,200

1.91

1.25

Texas

$151,600

$30,332

$58,600

1.93

1.42

United States

$177,900

$35,952

$64,000

1.78

0.99

*The HAI is the ratio of the median family income to the income required to buy the median-priced house using standard mortgage financing at the current interest rate. Standard financing is a fixed-rate, 30-year loan covering 80 percent of the cost of the home. A HAI of 1.00 indicates that the median family income is exactly equal to the required income to qualify for the standard loan to purchase the median-priced house. **First-time homebuyer is assumed to purchase a home equal to the first quartile home price using a 90 percent home loan at an interest rate 0.5 percent greater than the standard current rate. Source: Real Estate Center at Texas A&M University

14.0

Price Distribution of MLS Homes Sold Odessa

12.0

Percent

10.0 8.0 6.0 4.0 2.0 0.0

2008

2009

Source: Real Estate Center at Texas A&M University

- 22 -

2010


2011 Texas Metro Market Overview

Odessa

Price Distribution of MLS Homes Sold, Odessa (in percent) Price Range

2004

2005

2006

2007

2008

2009

2010

$29,999 or less

-

-

5.8

3.3

2.4

0.8

2.3

$30,000–39,999

-

-

5.4

3.2

2.3

2.5

1.8

$40,000–49,999

-

-

6.0

3.6

3.0

1.8

2.1

$50,000–59,999

-

-

7.5

5.1

2.9

3.2

3.1

$60,000–69,999

-

-

10.8

5.3

4.4

4.4

3.7

$70,000–79,999

-

-

8.6

7.7

6.6

3.1

4.8

$80,000–89,999

-

-

8.6

8.4

6.7

6.5

7.9

$90,000–99,999

-

-

6.3

6.4

8.7

7.7

6.5

$100,000–119,999

-

-

9.3

10.0

11.7

12.9

12.9

$120,000–139,999

-

-

10.1

12.7

11.5

13.0

13.2

$140,000–159,999

-

-

4.3

8.4

9.5

12.0

10.0

$160,000–179,999

-

-

4.3

4.9

6.4

6.5

8.1

$180,000–199,999

-

-

2.8

4.7

5.8

5.5

5.4

$200,000–249,999

-

-

5.1

7.4

6.8

10.2

7.8

$250,000–299,999

-

-

2.3

4.6

5.2

5.4

5.5

$300,000–399,999

-

-

1.7

2.7

3.9

3.1

3.4

$400,000–499,999

-

-

0.3

0.7

1.3

0.6

1.0

$500,000 and more

-

-

0.7

1.0

0.9

0.9

0.6

“-” represents unreported data or nonparticipation in Real Estate Center’s survey. Source: Real Estate Center at Texas A&M University

Property Tax Rates 2010 Taxing Entity*

Tax Rate per $100 Valuation

City of Odessa

$0.523

Ector County ISD

1.135

Ector County

0.356

Total

$2.014

*Only the typical taxing entities are included in the total. However, there are numerous taxing entities that need to be taken into account for an actual tax rate calculation. See following link for a more complete list: http://www.ectorcad.org/ Source: Ector County Appraisal District

- 23 -


2011 Texas Metro Market Overview

Odessa

Average Sales Price Odessa MLS

$160,000

$144,200

$140,000

$146,200

$133,300

$120,000

$142,100

$108,600

$100,000 $80,000 $60,000 $40,000 $20,000 $0 2001

Data not available through 2005

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: Real Estate Center at Texas A&M University

Yearly Home Sales and Months Inventory Odessa MLS

1,800

6

1,600 5

1,400

Sales

4

1,000 3 800 600 400 200 0

2 Months Inventory measures the current absorption rate and how long it would take for current supply to be depleted if no other listings came on the market. Data not available through 2005.

2001

2002

2003

2004

1

2005 Sales

Source: Real Estate Center at Texas A&M University

- 24 -

2006 Supply

2007

2008

2009

2010

0

Months Inventory

1,200


2011 Texas Metro Market Overview

Odessa

Single-Family Home Sales Volume Odessa MLS

160 140 120

Units

100 80 60 40 20 0

Jan.

Feb.

Mar.

Apr.

May

June 2008

July 2009

Aug.

Sept.

Oct.

Nov.

Dec.

2010

Source: Real Estate Center at Texas A&M University

Single-Family Building Permits and Average Value Odessa MSA

300

$250,000 268

261

254

250

$200,000

220

215

200 Units

150 $100,000 100 $50,000

50

0

2006

2007

2008 Units

2009 Average Value

Source: U.S. Census Bureau

- 25 -

2010

$0

Average Value

$150,000


2011 Texas Metro Market Overview

18.00

Mortgage Rates 30-Year Fixed

Odessa

3.0

16.00 2.5 14.00 2.0

10.00 1.5

8.00 6.00

Points

Rate

12.00

1.0

4.00 0.5 2.00 0.00

0.0

Annual Average Rate

Annual Average Points

Source: Federal Home Loan Mortgage Corporation

9.00

Mortgage Rates 15-Year Fixed

1.8

8.00

1.6

7.00

1.4

6.00

1.2

5.00

1.0 4.00

0.8

3.00

0.6

2.00

0.4

1.00

0.2

0.00

0.0

Annual Average Rate Source: Federal Home Loan Mortgage Corporation

- 26 -

Annual Average Points

Points

Rate

2.0


2011 Texas Metro Market Overview

Odessa

Hotel Hotel* Occupancy and Rental Rates 2009 Odessa MSA Number of Rooms (in thousands) Average Daily Rate** Occupancy Rate (in percent)***

2010 Texas

Odessa MSA

Texas

2.2

377.4

2.4

396.3

$61.88

$79.95

$79.74

$82.27

50.8

49.2

57.6

51.3

*Only properties exceeding $20,000 in the current quarter are included; those units below $20,000 only result in 1.5 percent of the total state revenues and have been excluded from the Source Strategies database. **Estimated with the aid of financial reports, appraisers, private SSI surveys, chain and AAA directories and another reliable industry database. ***Occupancy: nights sold divided by nights available (x 100). Room-nights sold are calculated from estimated rate and actual rooms revenues. Sources: Office of the Governor—Economic Development and Tourism, and Source Strategies Inc. of San Antonio

- 27 -


Real Estate Center Market Reports

The Center strives to provide the most accurate and up-to-date data to paint a detailed picture of Texas’ Metropolitan Statistical Areas. However, links contained in this report may change or become obsolete. The Center advises contacting the original source regarding broken links. The Center also offers numerous other publications, resources and data.

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REPORT COMPILED BY:

Edith Craig Kory Merten Kristen Wiehe

Real Estate Center 2115 TAMU College Station, TX 77843-2115

Administrative Coordinator Market Research Assistant/Design Assistant Market Research Assistant/Design Assistant

979.845.2031 979.845.0460 FAX


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