Categories: NewsPublished On: December 4th, 2024

This article originally appeared in the Hobbs News-Sun. 

By David Reed

There’s an undeniable excitement that accompanies community growth. A thriving downtown, the arrival of new businesses creating job opportunities, and an increase in community events all point to progress. However, this growth also brings challenges—especially when housing supply cannot keep up with demand.

Lea County is currently facing a significant housing shortage. A 2024 study by the Ventana Fund revealed the county is short by approximately 1,700 housing units, and the University of New Mexico projects a 13.9% population increase in our county between 2020 and 2040. To accommodate this growth, Lea County will need an estimated 4,300 additional housing units.

Lea County’s housing challenges mirror national trends—low housing inventory, rising construction costs, and limited land availability. However, our county also faces unique local barriers:

  • High Land Costs: Acquiring affordable land suitable for development is a persistent issue.
  • Developer Shortage: A limited number of local builders and developers makes it harder to meet demand.
  • Larger Household Sizes: Compared to New Mexico and the U.S. overall, larger household sizes increase housing pressure.

These factors have driven up housing prices for single-family homes and rentals, making it difficult for many residents—especially those in the workforce—to afford suitable housing.

To address these challenges, the JF Maddox Foundation, in partnership with the Economic Development Corporation of Lea County, Lea County State Bank, Urban Land Institute of New Mexico, and Ventana Fund, hosted the first-ever Housing Summit. This event brought together developers, government officials, business leaders, and community members to brainstorm actionable solutions.

One critical obstacle identified during the summit was the need for developer education and support. Many developers lack access to the resources and knowledge required to navigate local building codes, infrastructure plans, and incentive programs. To overcome this, the summit proposed establishing a development academy that would:

  • Train developers on local infrastructure plans and reimbursement programs.
  • Offer guidance on navigating incentives such as tax breaks and affordable utility programs.
  • Provide resources for building master-planned communities, even in rural areas.

Another significant challenge is the perceived volatility of the housing market in Lea County. Oil and gas, the region’s economic backbone, can cause market fluctuations that deter long-term investment. Establishing public-private partnerships between local governments, energy companies, and other stakeholders can help reduce risks and encourage investment in stable, long-term housing projects.

In addition, many workers in Lea County struggle to find housing that fits their needs and budget. Workforce housing—affordable homes targeted at middle-income residents—is a crucial piece of the puzzle. By exploring public-private partnerships and offering incentives such as tax credits and subsidies, the Lea County community can create more attainable housing options. These strategies have proven successful in communities facing similar issues across the country.

Nor-Lea Hospital District has provided a great example of out-of-the-box thinking when it comes to housing.  The district purchased 20 acres of land in north Lovington and released a request for proposal for a developer to build apartments on seven acres of the property.  The hospital district leveraged funding from the Lovington Economic Development Corporation to build out the necessary infrastructure for the project.  So far, the project has yielded 64 residential units.  This is one of many ways an entity with outside expertise can facilitate creative solutions for housing.

Lea County needs more housing, and it will take collaboration from all of us to meet this challenge. By addressing key obstacles, fostering strong partnerships, and creating innovative solutions for affordable housing, we can ensure our community thrives for decades to come.

Let’s work together to turn these plans into action and build a Lea County where everyone has a place to call home.

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David Reed is the Chief Operating Officer for the JF Maddox Foundation, a family foundation focused on cultivating big-picture possibilities in Lea County, New Mexico. Through its investments, scholarship program, and leadership institute, the JF Maddox Foundation has transformed the Lea County community, creating opportunities for residents to thrive for generations.