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My wife and I purchased a home in Mansfield, Pennsylvania in the spring of 2008. In the months that followed, massive amounts of Marcellus Shale were discovered in the area, bringing gas companies and private investors to the region in droves. Land owners enjoyed signing lucrative gas leases, and when the housing market's bubble burst in 2009, the area was left largely unaffected.
Four years later, we have listed our home and expect to see a nice margin of profit. Mansfield is a college town, so rental properties have always been a premium, but as jobs were created the population has exploded. In 2008 my wife and I rented a two bedroom apartment for $575 per month. Today, that same apartment is rented for $1,100. Surprisingly though, as rental income soared, housing prices remained mostly stable as a result of the national economic collapse. As 2011 came to a close, in-town housing began to react to the local economy and prices have risen accordingly. As jobs continue to pour into the area, there is no reason the housing market won't heat up with the summer.
While the housing in town was slow to react, properties with acreage wasted no time at all. Land value rapidly tripled in anticipation of royalties from gas drilling, and as long as landowners continue to receive handsome monthly checks, the market will continue to gain. Gas companies are not the only ones bringing jobs and the resulting economic stimulus to the area. Restaurants and retailers have also moved in to meet demand, and that brings a flurry of low level jobs that are quickly filled by young people from the growing university. In the past four years Lowes, Peebles, and Tractor Supply have all opened Mansfield locations, as well as, Sheetz, Perkins, and Cracker Barrel. Several hotels have also been built to help meet the new housing demands in a town that had a population under 4,000 just a short time ago.
In 2008 we purchased our home for $109,000. We have recently listed it for $169,000 and fully expect to sell in the $150,000-$155,000 range. Thanks to new-found natural resources in our area, we have profited when the rest of the nation has struggled.
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