North dakota building more new homes than any other state

The IMF this week hailed the US housing market’s growth as “stronger than expected”, with sales up by more than 15 per cent year-on-year in July 2013. House prices have also grown by up to 12 per cent.

Leading the turnaround? North Dakota. According to US Census Data, North Dakota’s housing market is growing by 2.3 per cent, far ahead of the national average of 0.3 per cent.

The boom in North Dakota’s construction is fuelled by the oil boom in the area, with the Bakken Formation attracting thousands of workers into the state for employment opportunities. As the population is predicted to soar 25 per cent by 2032, though, the state is in urgent need of more houses: indeed, it will need to accommodate more than 66,000 new people within the next 20 years.

Robert Gavin, CEO of North Dakota Developments LLC, comments: “The Change in North Dakota in the past two years alone has been incredible. The influx of workers has put pressure on everything, from supermarkets to housing stock.”

Indeed, the company has turned to an innovative investment model to help support the growth in construction, with investors able to purchase units ranging from a fraction of a studio (from $30,950) up to a full suite of six rooms (from $319,700), with projected rental yields of up to 42.07 per cent per year.