HUD Homes Articles | Yeah, what is so special about Grand Junction? I lived in Denver for 7 years and made the occasional trip through Grand Junction, yet had no strong desire of relocating there. Here at Zillow, we spend a great deal of time looking at numbers, trends and analysis and have noticed that Grand Junction, despite the troubled economy, has shown a 4.9% growth in the median home value since this time last year. As the national economy continues to struggle – the U.S. is down 9% compared to this time last year — Grand Junction continues to grow.
My initial theory of Grand Junction’s growth revolved around the ski industry, mostly because that’s why I moved to Colorado. With a bit of homework, I found that Aspen and Snowmass were more than two hours away, which is not an efficient commute for mountain staffing. There are a few smaller ski areas closer but hardly enough to explain Grand Junction’s growth. So, what is it that makes Grand Junction so special?
After some digging it became clear, but first, let me provide some background.
Grand Junction and the western slope of Colorado have the largest concentration of oil shale in the world. Oil shale can be mined and processed to produce oil. It’s much more expensive to produce oil from oil shale, but in the gas crisis of the 70’s, Exxon set up shop in Grand Junction to do just that. However, when the crisis concluded and traditional means of getting oil became more affordable, Exxon left as fast as it arrived. Twenty-five years ago, Exxon pulled out of Grand Junction on what became known as Black Sunday, and left 2,100 workers without jobs. Black Sunday plunged the Western Slope — including Grand Junction’s economy — into a depression that took many years to recover. Understandably, Grand Junction is reluctant to get excited about the latest boom.
Interestingly enough, the Piceance Basin, located northwest of Grand Junction, is an energy rich formation loaded with natural gas. Natural gas — unlike the oil shale — is a commodity that may be more sustainable. And it doesn’t hurt that most of the money is private compared to the government-subsidized oil shale project of the 70s. It’s unclear if there is a rebirth in the oil shale mining projects from the past, but it does seem that natural gas reserves are a bit safer than the oil boom of the 70s.
As the national unemployment rate is rising, Grand Junction is busy recruiting workers out of state in an effort to fill energy-related jobs. According to the Denver Post, as of July 2008, Halliburton, an oil field services company, had 100 open positions with an average annual salary of $50,000. As the number of jobs increases, the available rental properties drops and the need for new housing increases.
What’s so special about Grand Junction? … It has GAS!
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