Temporary workers cause rental prices to more than double

This is the second article in a two-part series about the Marcellus Shale development in Pennsylvania.

The huge influx of Marcellus Shale workers into northeastern Pennsylvania has driven rental prices through the roof and is changing the landscape of numerous communities.

“It’s still early in the process but already we’ve seen a fairly dramatic impact in a lot of areas like local rentals, housing availability and hotel rentals,” said Dr. Timothy Kelsey, state program leader in economic and community development for the Penn State Cooperative Extension.

Bradford, Sullivan, Susquehanna and Tioga counties have seen some of the greatest activity. “Hotels are full,” Kelsey said. “Rental prices in some of these locations have tripled in the last year or so because so many people are moving in.”

Some owners have taken their houses off the market and are now renting them. Bill Them of Century 21 Jackson Real Estate in Wysox said, “Houses that rented for $300 to $400 a month now rent for $1,000 to $2,000 a month. As a result, we’re seeing local people who can’t afford to pay the rent and are being forced to move.”

Kelsey said the development has changed property values in areas of the Commonwealth. “In the southwestern part of the state, there’s some concern about property values lowering but in the northeastern tier, we’ve seen an increase,” he explained.

Robin Fiester of Robin Real Estate in Eagles Mere said she’s seeing rentals skyrocket in price and demand is ever increasing. She recently testified at a state Senate Hearing at the request of Sen. Gene Yaw (R-Bradford) regarding the high demand for rental housing in these counties.“Bradford and Sullivan counties don’t have enough hotels to fill the needs for temporary housing so some workers are traveling to Lycoming County to find a place to stay,” she said.

Kelsey agreed that the influx of more workers will create new challenges. “The temporary workforce is a great situation for landlords and hotels, however, it will be more difficult for local people to buy a home. The challenge will be to keep the workers living in these areas,” he said.

Bob Wood with The Real Estaters said in the Mansfield area, a few of the smaller, “mom and pop” motels are being purchased by the gas companies to accommodate housing for workers and avoid the rental market.

Them met with community leaders in Texas who have experienced the development process. “Approximately 20 counties in Texas have seen about $80 billion pumped into the local economy over an eight-year period as a result of the gas industry,” he said.

Joe Barone, president of PA Gas Directory, said workers are looking for bigger and newer homes with four bedrooms and two baths. “Many of the gas workers are from the west, where it’s not a big deal to travel 100 miles to get to work,” Barone said. “We’re hearing of workers buying homes in the central part of the state and driving an hour to get to the work site.” Barone started PAGasDirectory.com to connect gas workers, who have relocated to Pennsylvania, with local businesses for both professional and personal needs.

“This is long term for Pennsylvania,” Them added. “I don’t think we can predict all the change that’s coming.  Ours is a very rural county; we don’t have the office space, hotels and infrastructure to support it so we’re going to see changes to meet those needs.”