Homebuilding in Hobbs setting record pace
Nearly $35 million in housing permits issued in 2018
Several homes are under construction in 1900 block of Homestead Drive by Gold Creek Homes of Weatherford, Texas. The new Homestead Estates subdivision is about 80 percent complete. Hobbs issued permits for 164 residential single-family homes in 2018 — about the number issued in 2016 and 2017 combined.
The City of Hobbs last year doubled the number of permits issued for residential single-family homes from the previous year, while seeing a $20 million overall increase in residential and commercial permits.
New commercial growth in the city increased by a third from 2017 as the city saw a growth spurt amid a boom in the oil and natural gas industry.
Hobbs issued permits for 164 residential single-family homes in 2018 — about the number issued in 2016 and 2017 combined — closing the year with 11 home permits issued in December.
By comparison, Hobbs issued permits for 82 residential single-family homes in 2017 and 85 in 2016. The city saw a spike of 169 single-family homes in 2015, which were as few as 18 in 2010.
In addition to the 164 new homes valued at $34.9 million, the city also issued 40 permits in 2018 for manufactured homes valued at $1.4 million, four permits for duplexes valued at $499,200, 100 permits for residential remodeling projects valued at $1.27 million, 102 for re-roofing projects valued at $775,000, 42 for storage units valued at $672,000, four for detached garages valued at $57,000 and three for swimming pools valued at $180,000.
The record-setting pace of homebuilding in Hobbs is largely the result of five ongoing major housing construction projects — Zia Crossing, Homestead Estates, The Meadows, Tanglewood and Libba Land Subdivision — all of which are under construction in and around Hobbs.
The Hobbs City Commission in 2018 approved numerous incentive agreements with developers that encourage and subsidize the building of public infrastructure related to the new homes. The taxpayer-funded subsidies pay contractors for the installation of municipal infrastructure, such as water and sewer lines, streets to access new homes, and sidewalks.
Local developers have said the development agreements have incentivized homebuilding in the city.
City Commissioner Christopher Mills agrees.
“I think that the residential growth, from talking with the builders and the people involved in that, has been greatly influenced by the city’s programs to share the infrastructure costs with them and reimburse them for that,” Mills said. “I think that has really been a big driver of growth, according to the builders. I also think when you’ve got construction people in the area and permits going out, those folks talk to each other. What we’ve been told is that people looking for opportunity, contractors and stuff, we’re on their radar because their buddies are working here or they’re doing other projects. So you get a critical mass.”
Hobbs also issued permits for 20 new commercial developments in 2018, up from 14 commercial developments in 2017 and 20 in 2016.
In addition to the 20 new commercial permits issued in 2018 for business properties valued at $5.5 million, the city issued 43 permits for commercial remodeling projects valued at $3.5 million, 17 for re-roofing projects valued at $791,000, 42 for commercial signs valued at $1 million, seven for commercial towers valued at $200,000, six for commercial additions valued at $421,000 and three for commercial storage valued at $78,000.
The city has not issued any permits for hotels or motel rooms in 2014, when it issued permits for 124 hotel/motel rooms.
In total — including mechanical, plumbing and other types of permits — the city issued 595 commercial permits in 2018 valued at $12,543,350 and 1,950 residential permits valued at $43,984,556, for a grand total of 2,545 permits for $56,527,906.
In 2017, the city issued 499 commercial permits valued at $12.2 million and 1,618 residential permits valued at $24.7 million, for a grand total of 2,117 permits for $36,976,945.
Mills said he believes the overall growth in the residential and commercial markets is related.
“I think more people recognize that this is a place where you want to invest your dollars, and a place that there’s an opportunity for growth and an opportunity for business,” Mills said. “I think the residential and the commercial complement each other.”
Jeff Tucker can be reached at firstname.lastname@example.org .
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