In Wyoming the economy is heavily dependent on exploration and development of energy and as the energy business takes a hit from lower prices for oil and natural gas, housing markets are beginning to feel the impact. Home sales are slowing as drilling rigs are idled and job layoffs increase.
The state's unemployment rate, which is still one of the healthiest in the nation hovering around 5 percent, however, is worsening and demonstrates fundamental changes in the Wyoming economy. As demand for oil and natural energy declines as a result of the recession, Wyoming is bracing for a further decline in home values.
Wyoming's energy driven economy benefited from higher energy prices and higher prices paid for land by energy producers. But there are few energy companies looking to buy land to explore these days.
A wind power boom added to the natural gas boom in the "Cowboy State." The two booms are expected to return once energy prices climb once again, but industry analysts aren't planning on an improvement for a number of years. Wyoming housing markets appreciated during the boom, but not at the frenzied double-digit rate of appreciation elsewhere, which is why most places in Wyoming won't fall as much as other areas of the country.
 |
| City |
Forecast |
| Jackson Hole |
− 6.8% |
| Cheyenne |
− 5.7% |
| Buffalo |
− 3.5% |
| Lander |
− 4.8% |
Near the Wind River Range in Lander energy workers have been moving to the area for more than a decade, but with the slow down in the industry many are fleeing for employment elsewhere. As a result, home sales are slowing and Housing Predictor forecasts Lander to deflate 4.8% in average home values in 2009.
In Cheyenne, the state's capitol, growth has slowed as employers added jobs even into the early part of 2009 before the energy markets dropped. However, businesses are still making inquiries about moving to Cheyenne as more local bankers provide mortgages to borrowers. The impact of a slower energy market coupled with other job layoffs will act to slow housing sales further during the year, and reduce housing values forecast to drop 5.7% in 2009.
Wyoming is also insulated a bit by having one of the lowest foreclosure rates in the country. Spurred by the coal-bed methane fields nearby, the city of Buffalo has grown and shouldn't suffer as much as other areas of the state, forecast to deflate just 3.5% in average housing values for the year.
In Jackson Hole, which has been built into a snow-skiing resort destination for many of the country's richest, high-end homes are taking a hit, and are projected to sustain the worst deflation in all of Wyoming housing in the downturn. The multi-million dollar retreats are forecast to lose 18.3% in average values by year's end. But the rest of the market, however, in Jackson Hole is projected to see average deflation of just 6.8% in value.
