Boom! North Dakota’s oil boom turns into baby boom thanks to state’s economic prowess
Tough economic times and slow population growth usually go hand in hand and this has certainly been the case for the US. Recent figures from the Census Bureau show the national population for the year to July 2013 grew at its slowest rate since the Great Depression, adding just 2.255 million new people.
Both immigration to the US and the country’s birth rate were deeply impacted by the global financial crisis, which drove both levels down as the ‘land of opportunity’ seemed anything but. The national fertility rate dropped from 69.5 births per 1,000 women of childbearing age in 2007, to just 63 births per 1,000 in 2012, according to data from the US Department of Health and Human Services.
One state, though, clearly didn’t get the memo about there being tough economic times at hand. In fact, North Dakota bucked the trend in terms of both migration and birth rate.
Pew Research reports that around 100,000 workers have been added to North Dakota since 2009, while the state’s unemployment rate sits at a nation-leading 2.6%. Migrant workers have flooded in, drawn by the Bakken Formation oil fields and the promise of high salaries for all those willing and able to work.
The use of fracking technology to extract oil from the Bakken has led to a modern-day black gold rush that has seen North Dakota’s population increase by 12% in the past five years, according to census data. Men have accounted for around two-thirds of the growth (46,000), though some 30,000 women have also chosen to make North Dakota their new home.
The state’s birth rate has also increased significantly. According to the Kids Count Data Center, resident births in North Dakota have risen steadily from 8,931 in 2008 to 10,072 in 2012: an increase of 12.8%, in strong defiance of the national trend.
Kids Count also ranks states by considering a huge range of factors (everything from family income to children’s dental care), in order to examine which states offer the best place for children to grow up in the US. The recently released 2014 ranking places North Dakota sixth in the country.
Robert Gavin, Group CEO of the award-winning North Dakota Developments, which specialises in developing sector-leading oil worker accommodation in the area, such as the newly announced Transhudson Hotel, Parshall, comments,
“We’ve gone from an oil boom to a baby boom here in North Dakota. As the Bakken oil play has been recognised to have decades of strong production levels ahead of it, families have felt confident that the time is right to have that first child, or to add to their existing brood. My wife and I haven’t been immune to the trend either!”
North Dakota Developments is offering investment opportunities in the Transhudson Hotel, Parshall from as little as $84,950, with current discounts of $20,000 included for early purchases (regular suite price: $104,950). Investors can benefit from assured net yields of 16.5% per year, with compulsory buy back after the third year for the purchase price plus 10%, generating a total net return on investment of 59.5%. With such strong yields available, North Dakota is proving itself to be the perfect location for those looking to grow their incomes as well as their families.