It certainly has many names, but the concept remains the same; the booming business of worker accommodations offers lucrative opportunities. The real estate industry is abuzz with temporary housing, worker accommodations, and lodges, more popularly termed as man camps. These man camps are crucial real estate developments that have emerged near oil and gas fields.
They are for addressing the temporary housing needs of workers employed by oil and gas fields. They offer a comfortable home away from home with superior affordability than hotels, inns and other accommodations. Various firms have taken the initiative to construct such accommodations for their workers to enhance affordability and comfort with quality housing.
With hotel rooms and apartments rising in occupancy rates, sufficient and adequate workers’ accommodations are the need of the hour. Developers and government officials are focused on addressing this need through pragmatic and savvy investments. Regions near oilfields and remote locations come with an increasingly expensive motel and hotel rates.
However, the market offers substantial space for new players who seek to address this need and make lucrative gains. This article explores the booming business of worker accommodations and the benefits it offers the real estate market.
Heightened Demand for Housing
Working in the oil and gas sector is one of the toughest professions in the world. The workers are typically underpaid and overworked, making it increasingly challenging to afford decent accommodations. After a hard day’s work, workers seek the comfort of a cozy fire and a warm meal, which is hard to come by near remote oilfields.
In recent years, builders focused on workforce housing have identified this demand and moved to fulfill it with temporary accommodations. These establishments are designed to house oilfield workers and provide them with decent housing to improve their life quality. These accommodations typically feature rooms, dining halls, recreation rooms, and other facilities to maintain affordability and quality.
Naturally, such oilfield crew housing accommodations are in proximity so workers can easily travel back and forth. Workers typically leave these accommodations in the morning to return at night after laboring away all day. They desire comfort and homely warmth more than luxury and opulence. Therefore, developers primarily focus on making improvements to bring upscale comfort to such accommodations.
With big players, such as Goliath, eyeing these investments with the agenda to go upscale, the trend is aggrandizing and innovating. Bigger developers and builders seek to modernize this niche by offering a distinctive taste of luxury and comfort. They plan on developing large-scale workers accommodations sprawling over acres and acres of centrally-located lands nearby oil and gas fields.
Such accommodations come surrounded by wrought-iron fences and offer single-occupancy units with private baths and homely comfort. What’s more, workers can also enjoy two freshly-prepared meals and lunch sacks. These accommodations are to address every fathomable need of oilfield workers.
For instance, they offer housekeeping services, catering services, and even shuttle services for commuting. Developers are focused on highlighting aspects that offer a home-like comfort, such as excellent food and increased privacy. Workers do not like being jumbled into one room with multiple occupants. However, given their financial means, it is increasingly hard for them to carve out privacy and comfort.
This recent wave of temporary workers’ accommodations has made it possible for them to enjoy comfort and luxury. Situated in the middle of nowhere, previously, they had to bear the burden of heightened costs and reduced living standards. Gradually, developers have turned their attention towards the housing plight of oilfield workers with agendas to develop upscale yet affordable accommodations.
Man Camps in Remote Locations
Some call them temporary workforce housing while others prefer the term man camps. Regardless of the terminologies, these developments are popping up in remote locations to address the needs of oilfield workers. From Texas to North Dakota, numerous companies have moved in to provide well-site accommodations with superior comfort and upscale luxury.
It is crucial to note that developing temporary accommodations for larger groups is quite recent and new. It has taken the industry by the storm as major developers seek to monopolize this newfound market sector with mammoth developments.
So basically, such accommodations will not be dominated by one single energy company or firm. There is ample space for private investors and real estate players to move in and make lucrative gains. The Midland-Odessa region has attracted major national players, including Goliath and Target Logistics. These players seek to provide larger housing accommodations aimed at creating a vibrant and active community.
It is crucial to understand that well sites and oilfields are mainly in far-off and remote regions. It creates an abundance of problems for workers who find themselves confined in unhygienic and uncomfortable living spaces. Along the time that it takes to finish projects of such nature, temporary housing becomes a dire need. Many energy firms have taken the initiative to construct their own skid-mounted and wheel-mounted housing units for their workers.
Such accommodations aim at being temporary until the oilfields and well sites are functional and operational. The state and local governments are also tuning into the demands of workforce housing, opening up opportunities for collaborations. Workforce housing is a major priority for developers and government officials, and private investors have much to gain.
In Texas alone, the motel rates have climbed up to $500 and more per night. For an oilfield worker, such luxury is unimaginable and unaffordable. They need a budget-friendly and homely alternative to apartments and motels, and temporary worker’s accommodations are the ideal solution. These accommodations offer much-needed relief, opening up various opportunities for investors.
It is crucial to note that the energy boom witnessed in Texas, North Dakota, and New Mexico is rapidly growing and burgeoning. These areas are highly challenging in terms of resources and cost-effective accommodations. Governments and energy firms are unable to sustain this energy boom without a sufficient and skilled workforce. Temporary worker’s accommodation is a crucial need to eliminate workforce shortage and allow economic growth.