People are curious if the Bakken real estate Boom has turned to a Bust. The answer, is, not quite. Prices are, undoubtably, down from the peak, but not to the point where they would be under “normal” market conditions.
Our rent in July 2014 for a 5 bedroom house in Watford City was $4100. It is, currently, at $3000. The 4 bedroom houses have fallen from $3700 to $2500 per month.
As you can see, prices are down very significantly. You can, also, see that the prices are still very high compared to what they were before the oil boom.
The reason for this drop is the price of oil has dropped and the rig count has gone down by about 2/3rds. The flip side to this coin, however, is that almost all development has stopped and (unique to the Bakken) housing has actually gone down due to the closing of man camps.
We predict that prices will rise once oil goes above $60 per barrel with rigs coming back. At $70+, we predict that rental prices will reach and might even exceed pre-bust levels due to the loss of man camp inventory, that will never come back.