- Jacobe Kendrick, 39, grew up in Midland, Texas, and is now working as a real-estate agent there.
- He has seen Midland transform as high-paying jobs lure thousands of millennials to the desert city.
- Kendrick said millennials' presence has exacerbated Midland's housing shortage.
This as-told-to essay is based on a conversation with Jacobe Kendrick about his experience growing up in Midland, Texas, his observations as a real-estate agent in the area, and raising his family in the city. It has been edited for length and clarity.
I'm Jacobe Kendrick and I'm 39 years old. I'm the team leader for the Bolt Real Estate Group at eXp Realty and I'm a real-estate agent.
I was born and raised in Midland. The city is located in the Permian Basin, which is one of the top producers of oil in the world. That makes this city possibly one of the most important places in America.
The city is totally different than it used to be, especially for someone like my dad. He went to school in Midland when it was still segregated. I think the year after he graduated, the schools began to integrate. He was one of the first Blacks to work in the oil field here, too.
These days, there's a lot more people and diversity in the city.
An oil boom has transformed Midland
I had a good upbringing in Midland. I went to private school from kindergarten all the way through sixth grade, and then I went to public school after that.
In 2002, I graduated from high school and enrolled in an Air Force Academy. I did five years of active duty before moving back to Midland. I resigned from the military because I got married and my wife and I were planning on having kids.
Around the time I came back to Midland in 2012, it began changing. The city experienced a major oil boom and prices shot up to over $150 a barrel. When that happened, there was a lot of prosperity, and so many people moved into the area.
Places where I used to ride my bike now have houses. There is a lot more traffic now, too. It's been really crazy seeing how many people are flocking to Midland because of the oil industry.
There aren't enough homes to go around
It's an interesting time for the housing market in Midland.
While it was competitive in the past, multiple offers aren't as prevalent as they were because buyer demand is down. A lot of buyers are waiting to see if interest rates will fall. However, if a home is nice, updated, and priced correctly, it can still receive multiple offers.
That's because Midland is experiencing a housing shortage. Six months' supply is considered normal for inventory and we haven't had more than three months of supply since I became a real-estate agent in 2015. It's led to prices consistently rising in the area.
When interest rates reached about 3% in 2020 there was a boom in the real-estate market. At that time, there were so many people moving into the area for jobs. But because there already were not enough houses to begin with, it caused prices to go up even more.
I have clients that are buying houses that are half the size of mine, but their monthly payment is just as high. In June, the average price point for a prospective buyer in Midland was $430,000. With the current mortgage rate of 7%, that makes their monthly payment about $3,200.
Homebuyers in Midland want big yards, but there aren't many newly built houses that have those anymore. If a buyer wants a larger yard, they're usually purchasing an older house that's already been remodeled.
Most of my clients are millennials who are jump-starting their lives
A large segment of my clients are millennials. They're often in the same stage of life as myself: They either just got married, or they're about to have kids, or they're selling their first home to purchase another.
Overall, I've got two types of clients. One is more white collar and typically looking to buy in the $300,000 and up price range. They've graduated from college and they know exactly what they want in life. When it comes to buying a home, they are not asking for anything different than any other normal buyer.
The other segment are first-time homebuyers, who I would say are more blue collar. They typically need down-payment assistance and first-time homebuyer programs. They're trying to get into a home partly because rental rates are so high. In Midland, the average apartment size is about 900 square feet and the average rent is $1,330.
Midland is a family-oriented city
Living in Midland is like living in the Bible Belt: If you're not a churchgoer, it may be harder for you to fit in. We have quite a few large churches here and that's typically where a lot of folks find their circles.
In most cities, if you don't have anything to do you go to Top Golf. I don't think people who relocate here are used to not having that type of entertainment.
That being said, I still think the community and the people of Midland are really great. If you have a strong work ethic, you'll find a good-paying job and be able to make a living.
For me personally, I chose to raise my family in Midland because I know what the people here stand for. It's also a great and safe place to raise your kids.