Owning a home is still very much a part of the “American Dream”. But ongoing high prices and low inventory means that dream is out of reach for many. Dissatisfied with the turtle pace of the legislature in Bismarck, one city in western North Dakota is taking matters into its own hands.
Watford City lies in the heart of the Bakken. Before the oil boom, its population had been declining for decades, dipping below 2,000 people in 2010. The dying city saw many of their residents move away due to lack of opportunity and amenities in the area.
But, everything changed when the Bakken boomed again in the 2010s, flooding the city with workers. Watford City’s population soared to over four times its population, forcing city leaders to come up with innovative ways to solve their issues.
Josh Nollmeyer works for the city. When he moved there 5 years ago, he went into a city housing development because city wages just couldn’t keep up with the high price of apartments in the area.
He says that since his career path is not as lucrative in the oil industry, he works hard to live within his means. Josh says housing is an essential expense so he has to find ways cut down on other expenses.
Josh wasn’t alone. School teachers, city employees, and other essential workers were housed in low rent developments so they could still live in a community where oil workers would make two to three times their wages. Rent remains high for these workers, who don’t make the higher wages of oil workers. Josh says he even lived in a friend’s basement for years until he found a small house to rent in the community. His goal is to stay in Watford City and lay down roots - and to do that, he’d like to buy a house.
Josh wants to find something small with one or two bedrooms, a garage, something simple. He hopes to see more entry level homes I the area, something to keep people in Watford City so they can invest in the future and lay roots, but at an affordable price.
City workers like Josh aren’t the only ones who need cheaper housing to live in Watford City. Pete Edis, CEO of McKenzie Health says their employees were also struggling to find affordable housing, so they took action.
The medical organization got into the housing business.
Edis says McKenzie Health owns about 70 units of housing, including apartments, townhomes, and single-family homes. He says, they can keep the rent low for their employees and their families and even help pay rent when they arrive in the city. Edis says that housing is a big part of their recruitment and retention strategy.
They provide housing for some of their providers and travel staff. Edis says it actually more cost-effective to provide the housing for the travelers then it is to pay for the hotel fees.
Vawnita Best is the city’s community and business development director and she’s seen the city’s housing needs change over time. From the man camps that housed temporary workers in the early 2010s to the high-density apartments that now dot the landscape, she says the strategy for housing all the new residents has also changed.
Vawnita says they’ve been fully engaged in trying to create low density, single-family rooftops, but it’s much different from the high-density buildings, and it’s been harder for the city to facilitate.
Today, many workers in the area have to commute hours a day from Williston, 50 miles away, because of the lack of housing in the city.
Vawnita says the apartments are at full occupancy and have waiting lists. Even what is shown in occupancy rates below 100% are turnover units that are being cleaned and repaired and getting ready to put back out onto the market, so all of those units have waiting lists as well.
Vawnita says they see many residents like Josh hoping to settle in the area long term, but the low number of homes and the high prices for the small stock is discouraging people from leaving the apartment complexes. Currently, the price of a single-family home in the area is in the 500 to 600 thousand range, when the most residents is able to afford is in the 300 to 400 thousand range—which is still much higher than most other cities in North Dakota.
She says they have some 600,000 plus dollar homes that have been sitting on the market for quite a while, but those just don't fit what a lot of people are needing or can afford, and there's a barrier there.
Over the years, Watford City has tried several programs to encourage developers to build single family homes in the area.
Vawnita says they’ve received marginal interest in these programs but not enough to satisfy the city’s housing needs, which are projected to be around 30 new houses a year. She says the city has come up with a new pilot project that could change the game for city developed property programs.
Through the Pathway to Purchase pilot program, the Watford City housing authority is investing 3.6 million dollars in funding to build 9 single family homes in Watford City. Upon completion, the homes will be rented out to residents who, through the program, could eventually buy the home outright.
Here’s how it would work: residents would lease the home with a projected 2500-dollar monthly payment. That payment will be set aside as the resident’s down payment if they choose to finish the program and buy the house. The city meanwhile, will make back most of what they invest into the project over time.
If the program succeeds, Vawnita says the city could fund up to 30 houses being built a year until demand drops and prices even out.
But this new pilot program isn’t the only way Watford City is solving their housing crisis. The city is also looking to invest into the future of Watford City’s construction industry. They’ve been looking into innovative construction solutions like modular and 3-D printed housing, but the city decided to invest in the future of construction in Watford City through its Bakken Area Skills Center.
Kids enrolled in the skills center are now able to enter that pathway and go through an entire pathway of construction trades. Vawnita says it’s a little longer game than what they’re trying to figure out right now, but their balancing building their way out of it, and having some quick wins for rooftop creation.
The housing crisis in Watford City is something many cities around North Dakota struggle with. At the state of the state address this January, Governor Burgum announced an initiative to address the housing shortage. Throughout the summer, the state conducted listening sessions in different communities to find out what the needs are. Soon, Governor Burgum will give his recommendations on what actions can be taken by the legislature. But with Governor Burgum finishing up his term in December, it’ll be up to the legislature - and a new governor - to decide on what approach to take in this upcoming session.