Rental Property Prices Skyrocket in South Texas Housing Market

The oilfield housing boom has motivated landlords to push out old tenants and bring in higher paid Eagle Ford workers. The owner interviewed in a MySanAntonio article is getting a bump in rent from $550 per month up to $1,250 per week or $5,000 per month if he can get 10 oilfield workers. Who knew Cotulla would have housing costs that rival New York City?!

We need homebuilders to enter the rural South Texas market in a big way.

The “For Rent” sign hanging on the fence outside the rundown, four-bedroom house at 505 Thornton St. captures perfectly the new housing dynamic in many of the small communities booming across the Eagle Ford shale.

“Oil Field Guys — Welder — Pipe Liners (Guys Only),” it reads.

And while the old white house with the peeling paint is nothing to look at, its owner hopes it soon will generate thousands of dollars a month from transitory workers looking for little more than a place to flop.

“I’m asking $125 a week per man. It can hold up to eight beds, even 10 or 12, and I pay the utilities,” landlord Gustavo Ayala said in a recent phone conversation.

In comparison, the longtime tenant who was evicted this summer paid $550 a month.

Read the full news release at mysanantonio.com

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Kenneth E. DuBose

Kenneth E. DuBose

Kenneth DuBose is the past President of Cheyenne Minerals Inc., an independent oil and gas operator. He began his energy industry career with ARCO Oil & Gas. Mr. DuBose then directed development of natural gas storage projects with Tejas Power Corp. He was a founding member of U.S. Minerals, (acquired by Torch Energy in 1999) a provider of internet based education for America’s mineral owners. Mr. DuBose holds a BS in Petroleum Engineering from Mississippi State University. He has served on various industry steering committees, non-profit boards, and is an active member of the Society of Petroleum Engineers, the National Association of Royalty Owners, the American Association of Professional Landmen, as well as being a Registered Investment Advisor. He writes on topics of oil and gas investing, wealth management and personal finance, having appeared in the Wall Street Journal, Kiplinger’s, Kiplinger’s Personal Finance, Houston Business Journal, Financial Advisor and various radio and TV outlets.

Comments

  1. R.T. Dukes rtdukes says:

    Jason, check out the “Eagle Ford Shale MarketPlace” at MarketPlace.EagleFordShale.com. That will be the perfect place to list your land so others will see it.

    Regards,

  2. jason kelsey says:

    I got 75 acres in tilden tx ready for camp.

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