Skyrocketing rent in Bradford County: Influx of gas workers creating shortage of affordable housing
Review Photo/JAMES LOEWENSTEIN State Sen. Gene Yaw says the growth in the natural gas industry locally is creating a huge demand for housing. From left: Rep. Garth Everett, Yaw, and Rep. Tina Pickett.
Due to the influx of workers in the natural gas industry, the rents for housing in the Bradford County area have doubled, tripled or gone up even higher, according to two realtors and the head of a local agency that helps homeless people.
They were among seven heads of local agencies and others who testified at a hearing held Thursday in Wysox Township by the Pennsylvania Senate Urban Affairs & Housing Committee.
"The influx of gas workers who are willing to pay rents far exceeding the fair market rent for this area (of Pennsylvania) has caused rents for decent housing to more than triple," testified Douglass Johnston, chief executive officer of Futures Community Support Services, which has its headquarters in Towanda. "Rents have increased to the point where even moderate income families cannot afford housing."
The hearing, which was attended by more than 80 people, was held to investigate the impact that the natural gas industry is having on housing in north-central Pennsylvania.
Those attending and participating in the hearing included Rep. Tina Pickett, Rep. Matt Baker, Rep. Sandra Major, Rep. Garth Everett, and Sen. Gene Yaw.
Almost all the senators on the Urban Affairs & Housing Committee were not present at the hearing, due to other commitments, including a hearing on education in Harrisburg, said Adam Pankake, a staff member of the committee.
However, the committee had invited the local state representatives to participate in the hearing, and they attended and asked questions of those presenting testimony.
Towanda Borough Council member Shannon Clark, who is a realtor with Century 21 Jackson Real Estate, told the state legislators at the hearing that the rental market has changed "dramatically" in the Bradford County area, as a result of exploration for gas in the Marcellus Shale.
The increased demand for housing over the past year "has tripled the average rental price" locally, she said.
"For example, a three bedroom home in 2008 would typically have a monthly rent of $600," she said. "Today, the landlord will receive $1,500 to $2,000 per month for the same property. The influx of gas workers needing rental properties has driven these prices up."
"The gas workers are willing to pay more in rent than we ever realized before," testified Robin Fiester, a real estate broker who specializes in selling property in Bradford, Sullivan and Lycoming counties.
The houses that would typically rent for $600 per month in Bradford and Lycoming counties are now renting for $1,000 to $1,200 per month, said Fiester, who is president of Robin Real Estate, which has offices in Eagles Mere and Muncy,
Apartments in Bradford and Lycoming counties "that typically rent for $375 per month are now renting for $800 per month," she said.
Renters who don't pay their rent on time are now more likely to get evicted, she said.
"Landlords are not renewing their leases" because they can receive more rental money from gas companies, Fiester said.
There has been a widespread practice where the gas companies pay the rent directly to the landlord, although some workers in the gas industry are starting to pay their own rent, Clark said.
Compounding the lack of affordable housing is the fact that developers in the area have been reluctant to build new housing because of early predictions that gas workers in the Marcellus Shale "would be in and out of the area within 5 to 7 years," Fiester testified.
"That scenario has changed" and the current predictions are that companies are going to be in this area for significantly longer periods of time, she said.
The expected, long-term local presence of Chesapeake Energy was one of the main messages at the hearing that was delivered by Matt Sheppard, the company's senior director of corporate development.
When asked by Everett how long Chesapeake expects to be in the Northern Tier, Sheppard replied: "We're in the very, very early stages of the Marcellus Shale development."
Sheppard said that Chesapeake would be in the area for a very long time.
When asked if Chesapeake was going to be in the area 15 years from now, Sheppard replied that 15 years would be a "conservative number."
"As additional investment is made (locally) and as we continue to grow as a company, we fully expect that demand for real estate for both housing and commercial use will continue to expand," he said.
Motels
Because local motels are booked to capacity for months in advance by gas companies, the local state-funded Homeless Assistance Program can't find rooms to place people in motels who need emergency housing, Johnston said.
"For the first time, we (the Homeless Assistance Program) have sent people away with no roof over their heads," Johnston said.
In Bradford County, due to problems finding affordable housing in Bradford County, increasing numbers of people are trying to find housing in the local publicly operated housing complexes for senior citizens and disabled people, said Bill Farley, executive director the local Area Agency on Aging. And more local people are trying to get into the Section 8 Rental Assistance Program, which assists low-income people, he said.
But the waiting lists for local public housing options are long, he said.
For example, there is an waiting list of three to 12 months to get housing in Bradford County's Public Housing Authority's seven buildings that house the elderly and disabled, he said.
The waiting list for Section 8 housing is now around three years, Johnston said.
"The potential exists that more of our frail and low-income population will join the ranks of the homeless in rural Pennsylvania," Farley said.
Farley suggested that a housing trust fund be set up, which would be funded by natural gas revenues, to assist in providing affordable housing locally.
Yaw said there is potential for owners of residential buildings to make a profit by converting them into housing that could be used by gas industry workers, which also would help alleviate the shortage of affordable housing.
The written testimony of those who spoke at the hearing is posted at Senator Gene Yaw's Web site, senatorgeneyaw.com.
James Loewenstein can be reached at (570) 265-1633; or e-mail: jloewenstein@thedailyreview.com.
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59 posted comments
In your direct reply to me...I got the feeling you thought I would expect free revenue from the gas company or any other large company. I don't. Nothing is free in life...a person has to work hard these days to get a little bit. The raise in living cost has hit all over the country, I am thifty person..I am astounded by the food prices and the just plain living expenses.People can't scrape out a living. As far the company chasing the money....well, there's little more to that; the company is going where the gas is. "Ya can't fish in a dry up pond". To me its better to find the gas in the USA instead of some other country. The higher rent cost has another factor other than the gas company relocating their workers. I don't know if you looked online or even looked in this little newspaper..I see alot of places with reasonable rent cost and mortages. Main reasons why landlords are quick to evict because the landlords can't have deadbeat renters when taxes,insurance and mortgage payments on the rental property are at an all time high. You said the CHK people don't spend local but they are spending local in many ways.
I am sure you have a great deal of experience dealing with the oil and gas industry. I can tell by how you are speaking. Boo Hoo to you!! We can't afford to live at the rates YOUR people have raised the rents and such to, which is why we still live in Oklahoma and my husband commutes back and forth.
You have no idea what exactly work on a rig entails. By all means if that is what you want to do get out there. They will hire you and I wish you luck. Most women cannot lift a 250lb set of slips or roll a 1200lb pipe. It is not a matter of discrimination it is a matter of pure physical strength and most women would also chose NOT to get all nasty. Now comparing a paper mill or factory to a drilling rig is no comparison. You speak of what you do not KNOW!! Go get em girl let me know how it works for you!! Big Beds for big folks,
Every RIG and I mean EVERY Rig has a trailer on it for the toolpusher and in some cases company men to live because they have to be on sight at all times. If you chose to live in a bunkhouse on a location with no vehicle that is your choice but I wouldn't wish that on my worst enemy. You need to be realistic. This is also the reason the man camps haven't happened yet because they haven't found a good solution. Who cares though it's not you in that situation is it. The guys already double up and it works but excuse them for treading on your precious territory. Also those that chose to move there can't live in the man camps they are only for the time of their hitch. They also can't live there with their families if they chose to move there. You can choose to share a bed with your entire family if you want but personally I only want one other person in my bed besides myself. You people don't have realistic answers. You want more safety on the rigs but don't know what happens on a rig. You want more housing but don't want to work. You want you want you want but don't want to give. Get the picture you have to give something to recieve. You also don't have the patients to wait for any change or things to happen. Nothing happens over night and this didn't either it has been a few years in the making. Good luck unrealists.
If you are renting out without the proper modifications, and if something should happen, not only will your insurance company have some issues but you could be found criminally negligent and go to jail. I would encourage all landlords to check into this for their own self-protection. Maybe this will tip the scales in favor of you renting to regular family groups again.
Your community can be flexible or inflexible. Here's a thought; when having a meeting..share statistical facts along with your thoughts. Here's quesion: Does any the realtors or brokers at the meeting own rental properties and did they raise the rental prices?
Thank you again! May God Bless you also. I know all this will get better in your county as soon as everyone decides to work together and my prayers are with you all. It makes me feel good to know there are some people who are welcoming to my husband and his fellow crew mates while they are so far from home.
You are welcome. As you can see, there are a few more people that welcome your people here as I do. Local BCTP hit it on the head. You are hearing grief from the people that don't want to get off their behinds and get a job and pay their own rent instead let hard working tax payers pay their way. Boo-Hoo. There are people here that understand what you and your husband have to sacrifice to provide for your families. These people don't understand that concept because they are, like BCTP stated, sitting home waiting for the mail man for their free money that you and I are working for. Congrats on the new baby and may your husband return from his duties here safely. God Bless.
WELCOME GAS WORKERS!