By Alexis Enriquez | February 2025
As the new administration rolls out its pro-oil and gas policies, Texas—home to some of the nation’s largest energy hubs—could see a major economic shift. With Midland and Odessa leading oil production in the Permian Basin, El Paso is indirectly but significantly affected by changes in the oil industry.
But what does this mean for homeowners, buyers, and investors in El Paso? Could oil deregulation boost the housing market, drive up home values, or create unexpected challenges? Let’s break it down.
The new administration has made it clear: Fossil fuels are back in the spotlight. The president has introduced key deregulation policies aimed at increasing U.S. energy production, including:
✅ Opening up more federal land for drilling – This means oil companies can expand their operations, bringing more jobs and investment to Texas.
✅ Rolling back environmental regulations – By reducing restrictions on oil companies, production may increase quickly, lowering energy costs but also raising concerns about environmental impact.
✅ Shifting away from renewable energy – The administration has cut funding for solar and wind projects, refocusing on traditional energy sources like oil, gas, and coal.
Why does this matter to El Paso? While we’re not an oil city, we are heavily connected to Midland and Odessa, where many El Pasoans work in the energy sector. More oil jobs mean more income, higher demand for housing, and potential real estate price shifts.
With expanded oil drilling and fewer restrictions, oil production in Texas is expected to rise. For El Paso, this means:
🏡 A boost in home values – More job opportunities in Midland and Odessa could lead to increased housing demand in El Paso, especially for families who prefer to live here and commute for work.
🏡 Increased rental demand – As oil companies hire more workers, many will need short-term housing, driving up rental prices in key neighborhoods.
🏡 More disposable income – If energy prices drop, residents could have more money to spend on homeownership, renovations, or investment properties.
📈 What this means for sellers: If demand for housing grows, home prices could see an uptick. Selling now or in the near future may be a profitable move.
📈 What this means for investors: Rental properties near highway corridors and oil worker transit points could see increased demand. Short-term rental markets may also benefit.
While oil deregulation may stimulate economic growth, there are potential downsides that homeowners and investors should be aware of:
⚠️ Market volatility – Oil prices are notoriously unpredictable. If demand drops or global markets shift, jobs could disappear as fast as they came. ( The sanctions on Russian oil during the Ukraine War significantly increased demand for U.S. oil, driving a surge in domestic production and energy market shifts for example. )
⚠️ Environmental concerns – With fewer regulations, some communities may worry about air quality and water resources, which could impact certain neighborhoods’ desirability over time.
⚠️ Less focus on renewable energy – While El Paso has invested in solar power and sustainability, deregulation could slow down these projects, affecting long-term energy costs and green home incentives.
So, what should you expect if you’re buying, selling, or investing? Here’s what oil deregulation could mean for El Paso’s real estate market:
🏡 Sellers: If job growth fuels home demand, now could be a prime time to sell before competition increases.
🏡 Buyers: If oil-related economic growth boosts the market, home prices may trend upward, making early 2025 a strategic time to buy.
🏡 Investors: Watch for rising rental demand, especially for short-term housing that could attract oil workers and contractors.
The key takeaway? Oil deregulation could make El Paso’s housing market stronger—but economic volatility means homeowners and investors should stay ahead of the trends.
🔹 Thinking of selling? Now may be the time before potential market shifts.
🔹 An investor? Keep an eye on rising rental demand and shifting housing trends.
🔹 A buyer? Locking in a lower price now could pay off before prices climb.
🔎 Want to know how oil policies could impact your home’s value? Let’s connect.
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