Oil boom in South Texas creates housing crunch for low income families

Pearsall is experiencing some growing pains, and it's affecting low income families looking for affordable housing.
Pearsall is experiencing some growing pains, and it's affecting low income families looking for affordable housing.
Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Share
Updated: 9/23/2011 7:10 pm

PEARSALL, Texas --  Pearsall is experiencing some growing pains, and it's affecting low income families looking for affordable housing.

The economy is getting a boost from the oil companies fracking in the Eagle Ford shale. The huge drilling project has brought thousands of oil field workers who need temporary housing.

Pearsall Housing Authority Director Norman Martinez says the business is great news for the local economy, but that property owners are canceling contracts to provide Section 8 housing, because oil field workers are paying them more for rent, as much as two to three times more than HUD tenants.

It's a problem that has spilled over from Cotulla, Carrizo Springs, Dilley, and Crystal City. Housing directors in those areas are teaming up with the Martinez to find a solution. They recently met at the Housing and Urban Development (HUD) office in San Antonio to petition government leaders in Washington to help find a solution.

Jose Lopez, the Crystal City executive director of housing, says the problem could increase even more if local housing officials don't get help from HUD. Lopez believes HUD could ease some of the restrictions for rating housing or give the communities affected more financial assistance to compete with oil companies that are driving up the cost of rent.

Arnold Garcia says it's a simple case of supply and demand.

"We knew the oil boom was coming. I personally had no idea of the magnitude of it," Garcia said.

The housing directors say the low income clients they assist generally have an average income between $8,000 and $12,000, making it tough for them to pay more for rent.

Share
3 Comment(s)
Comments: Show | Hide

Here are the most recent story comments.View All

The views expressed here do not necessarily represent those of News 4 WOAI (WOAI.com)

Johnny Cash - 9/25/2011 8:48 AM
4 Votes
Maybe the low income people should go apply for a job and they could afford better housing. Im sure they are refering to welfare cases like the woman who was on government housing selling dope out of it.

tcafy - 9/24/2011 3:45 PM
0 Votes
My jaw actually dropped when I heard your report last night concerning the oil field workers shutting out low income local families. The person responsible for writing this report needs to get the full story. One of the last statements was that housing authorities were going to the oil/gas companies to fix the problem. Your problem lies in your local greedy property owners. They are the ones treating their own townspeople this way. We are just doing what we have to do to survive and work. Yet we are also penalized. We have to sacrifice the time at home with famiy to stay employed. When you talk about the wages we earn, you don't think about most have to keep up a permanent home and family and also, a place to stay at our job. When we travel... to keep our jobs... we have to pay ridiculous rent to be able to stay and work. This is because of greed of your local property owners. I am ashamed of how they treat their local renters... These are your people. This is not our fault! You have an opportunity to have a turn around in this area's economy because of the oil/gas companies. How your greedy property owners handle this is certainly not the oil/gas field's fault, because we are also hurt by their greed. I would love for someone to address this side of the issue.

Guest - 9/23/2011 9:10 PM
0 Votes
UTSA and Texas State should add Petroleum Engineering to their degree offerrings, the highest paying engineering career. This is a good problem to have, people willing to pay 3 times the rent. This is the way to boost the economy, not handouts all the time (Bush gave out plenty of handouts before Obama did too).
Current Conditions
80°
High: 93° | Low: 64°
Overcast with Haze
Inergize Digital This site is hosted and managed by Inergize Digital.
Mobile advertising for this site is available on Local Ad Buy.