It runs counter to what you would expect this year, with unemployment rates and economic uncertainty high, but the real estate and rental market is doing well — so well, in fact, that finding a place to live in Powell is becoming a challenge.

John Parsons, co-owner of 307 Real Estate, recently went away for a weekend. When he returned, he had 14 inquiries waiting for him. Normally, local realtors start to see a dip this time of year.

“Just when you think it might slow down, it doesn’t,” Parsons said.

He said houses are outselling the pace of building, so the housing stock isn’t keeping up with demand. The builders he’s talking to are quoting 18 to 24 months out.

Eric Paul, broker/owner of Heart Mountain Realty, said there’s only about a month’s worth of inventory in Powell. All the houses being built are custom homes that people move into as soon as they’re ready; they won’t come on the market for many years.

“If you’re a seller, it’s great. It’s a sellers’ market,” Paul said. “We got buyers that are in the area ready to buy, it’s just a matter of waiting for inventory that suits individual buyer’s needs coming on the market.”

Parsons said 307 Real Estate gets multiple offers on homes up to $500,000. He had one home for $879,000 that had an offer after being on the market for only four days.

Paul said a newer home that was built last year was on the market for less than a day. He has about 26 active houses listed, which is about a third of what they normally have this time of year.

“It’s been a different year, for sure, but it’s been a good year,” Paul said.

Urban flight

As cities were faced with ongoing lockdown health orders in response to the COVID-19 pandemic — on top of the expense, rioting and other problems — forecasters have been saying for a few months that rural America might see more urban immigrants looking for a better life.

The latest figures from LinkedIn Economic Graph Research shows places like Portland, San Francisco, New York and Boston are seeing rapid increases in the ratio of people moving out over people moving in, while the opposite is true for cities like Salt Lake City and Kansas City, Missouri. While many of those fleeing urban life are going to other cities, some are heading for the suburbs and rural towns. This might be what’s happening in the Big Horn Basin.

Both Parsons and Paul said a lot of the inquiries are coming from people out of state, who say they’re looking for a higher quality of life. They want more safety, better schools and lots of outdoor recreation opportunities.

Paul said this is often called a “move up” market, because so many buyers are people who have had a first home for five or 10 years but are now moving up to something larger and nicer. But that’s not really happening right now. Many of the buyers are baby boomers who are either nearing retirement, retired or working remotely.

Despite the impacts of the pandemic, Parsons said he doesn’t think the economy is as bad as some might think. While government jobs, tourism and restaurants have taken a hit, many other industries are moving along. No matter what state people are coming from, Parsons said, they sell their properties quickly and capture that equity.

Parsons also said the demand for housing is not something exclusive to the Basin.

“We have offices in Buffalo and Sheridan that I own [and] it’s busy everywhere in the state,” Parsons said.

Rentals

The rental market is just as tight as the real estate market. Paul said Heart Mountain Realty publishes rentals on its Facebook page on Fridays, and there’s only a couple of listings anymore.

“We have people selling their house, and they literally have nowhere to go,” Paul said.

Greg Anderson manages a number of rental properties around the Powell area. His waiting list is so long, Anderson said he’s booked out to probably the fall of 2021. Last week he had a rental open up, but he had 10 people on the waiting list; it was immediately filled. 

“I had one person moving out as one was moving in,” Anderson said. 

With 31 years in the business, he’s seen Powell go through these cycles, where rentals become scarce. Oil booms often fill up occupancy, and years ago, when Northwest College had record-high enrollment rates, it was hard to find a place to live. The near-100% occupancy rate isn’t unprecedented in Powell.

He said the wind farm being built north of Frannie near the Pryor Mountains is driving part of the demand for housing in Powell and surrounding communities in the Big Horn Basin. Anderson also said that he gets a lot of out-of-town interest from people trying to get away from the problems of urban centers.

“Everyday I talk to someone who says, ‘I can’t take it anymore,’” Anderson said.

No vacancy

When the rentals fill up, the hotels start to see the spillover.

Rick Norberg, owner of the Lamplighter Inn, said wind farm workers are renting many of rooms at his hotel. He said many of the workers are seeking extended stays of six to eight weeks, and since they’re a smaller establishment it’s hard for them to accommodate that need.

“That’s limited in our area because it’s not a constant issue,” the proprietor said.

He’s seen big projects in the past have the same impact, such as the Blair’s Market remodel and new school constructions. It happens, but it’s rare.

High occupancy rates like Powell is currently seeing can be a double edged sword to the economy. It does mean a lot of house sales and rental dollars flowing into a community, but it can be hard for businesses to recruit when workers can’t find housing.

Rebekah Burns, executive director of the Powell Economic Partnership, said they get a lot of visits to the office from people looking for housing. She keeps a list of the major property managers. Two of the largest, Burns said, have a combined 500 units between them. They are both reporting 100% capacity.

Among the people she’s talking to, Burns said the impacts of the pandemic are a main reason they are coming to the area.

“It’s absolutely COVID,” she said.