Before you decide to invest or move into the city of Oklahoma, you need to learn everything there is to know about Oklahoma City real estate. Oklahoma City is one of the most popular cities you can find among investors and first-time buyers. Although the supply of homes in Oklahoma is almost infinite, it still cannot meet the demand from the many buyers who are interested in buying a home in this city.
Based on data from Realtor.com, you can see that most homes for sale in Oklahoma City have been bought by investors. You can observe 11% of homes for sale in this city being bought by investors from every coast. This certainly makes you wonder why Oklahoma City is very popular in the eyes of buyers.
If you are a real estate investor who is trying to gain an incredible amount of passive income from a rental property, Oklahoma City is the perfect place for you. Investors even spent almost $1 billion just to buy apartment complexes in Oklahoma City based on a report by The Oklahoman. This means that the OKC population has a high demand for single-family rental homes.
Because Oklahoma City is the largest city you will find in Oklahoma, it is not surprising that it is one of the biggest economic drivers you can see around the area. You will find excellent government, natural resources sectors, and defense in Oklahoma City. Thankfully for the people in Oklahoma City, the government fully supports the business by giving incentives to the job market, aviation, and aerospace, financial services, international trade, and bioscience.
Seeing the incredible potential in Oklahoma City, you should be interested to invest in its real estate market. To help convince you even further, here are some of the statistics that will help you understand why Oklahoma City should be your next investment target. Make sure to keep reading about this Oklahoma City real estate market.
Oklahoma City Metro Population and Growth
One of the things you should truly consider before investing in real estate is the population and growth around the target area. And you will be glad to know that the population of this city has grown approximately three times as fast as Oklahoma. And surprisingly, the population of Oklahoma City has also grown twice as fast as the population of the United States as a whole.
Based on a recent survey by the US Census Bureau, the population of Oklahoma City grew by over 17% over the last decade. And thanks to this population growth, Oklahoma City managed to bring more employers and employees to the city, improving the city’s job market as well.
Based on statistics, you will find approximately 681,000 people who live in Oklahoma City. The greater metropolitan area is even home to more than 1.4 million people. Because the size of Oklahoma City is more than 620 square miles, it becomes the second-largest city in the United States behind Houston. Of course, the size of this city leaves a lot of room for development and growth.
Over the years, the population of Oklahoma City managed to grow by 0.9%. Over the past decade, the population growth even reached 17%, which is very impressive. With a 1.55% annual population growth rate, the metropolitan area of this city can become home to more than 1.52 million people by 2023. In 2040, we predict that the population of the metropolitan area can reach 2 million people.
Oklahoma City Housing Market
Next, let’s talk about the housing market in Oklahoma City. Thanks to the population growth, the housing demand in Oklahoma City skyrocketed. And this leads to a significant increase in the real estate market in this city. Compared to 2021, the number of single-family homes for sale in Oklahoma City in 2022 has decreased by as much as 50%.
Based on a report by the Journal Record, you can see that many investors from out of town are buying homes quickly in Oklahoma City. They do this to make a rental property that will help them earn money from renters. Other than that, they are also doing this to fight the inflation that has been happening.
WalletHub ranked Oklahoma City to have one of the best real estate markets in the country. And that is not surprising, considering the impressive sales activity that you will see in this city. The reasons for that impressive sales activity include the healthy real estate market you will find in Oklahoma City, affordability, and the economic ranking and potential in the city.
Based on a report by Zillow as of May 2022, the median home value in this city is $194.763. You will also notice that housing prices have increased by as much as 18.1% in Oklahoma City over the last year. And over the last five years, Oklahoma City’s home values managed to grow by approximately 53%.
Based on data by Realtor.com, the average listing price of homes you can find in Oklahoma City is around $265,000, while the average selling price is around $250,000. If you are looking to buy a property in Oklahoma City, you should know that the per-square-foot list price is $149 on average.
One of the most impressive things about the Oklahoma City homes for sale is that they do not stay very long in the market. The average number of days on the market you will find in this city is approximately 37 days, which is why investors are racing when it comes to buying property in Oklahoma City.
Oklahoma City has a total of 248 neighborhoods. The neighborhood with the most expensive median listing price is Downtown Oklahoma City, with a price of $627,300. On the other hand, the most affordable neighborhood in this city is CEENA, which has a median listing price of approximately $153,000.
Oklahoma City Real Estate Renting Market
Now that you know about the housing market in Oklahoma City, you also need to know more about the renting market. As we have mentioned before, the supply of homes in Oklahoma City can never surpass the high demand for homes from the population. Although you will see many newly-built homes in the city over the last seven years, the demand is still higher than the supply.
Because housing prices have become more and more expensive over the years, most people prefer to rent rather than own a house. And that is why the renting market in Oklahoma City has been thriving over the years. However, that is not the only reason why the renting market in this city is very promising for investors.
Oklahoma City is ranked by WalletHub as one of the best cities for renters out of the top 70 other cities you can find on the list. Oklahoma City becomes a great city for renters because of a couple of factors. These factors include affordability, rental market activity, and the overall quality of life in the city.
One of the most notable reasons why Oklahoma City has a great renting market is because of the abundance of job seekers and students you will find in the metro area. This city is also very landlord-friendly, allowing landlords to easily have a rental property in Oklahoma City. That is why real estate investors should be interested in this city.
Based on Data from Zumper, to rent a 3-bedroom home, the median rent in this city is around $1,460 per month. Over the last couple of years, rents in Oklahoma City have increased by as much as 13%. Other than that, rents for a standard 3-bedroom house in this city grew by approximately 24% over the last three years.
Out of the total occupied housing units in the city, 44% are occupied by renters. A lot of people even decide to rent to own homes OKC. You can rent homes for an average of $695 or less in affordable neighborhoods in the city, including Musgrave, West 10th, and Coverdale. On the other hand, neighborhoods with the highest average monthly rents are Copper Creek, Downtown Oklahoma City, and NW Oklahoma County with an average rent between $1,748 and $ 2,440 per month.
Oklahoma City Cost of Living
One of the reasons why Oklahoma City attracts a lot of people is because of its low cost of living. Based on data from bestplaces.net, Oklahoma City has quite a low cost of living compared to the United States in general. Every aspect of the cost of living in this city is lower than that of the United States, including the cost of groceries, health, housing, utilities, transportation, and many more. The electricity rate of Oklahoma City is even considered the second lowest rate in the entire United States.
As you probably already know, a low cost of living will improve the quality of life. Nobody wants to live in a place with high affordability. Oklahoma City provides every facility you will find in a great metropolitan city without the residents having to pay more for it. You can easily find entertainment in Oklahoma City without any problem at all.
Oklahoma City Market History and Forecast
Another factor you need to consider is the market history of Oklahoma City. By reviewing the market history, you will be able to predict or make a forecast of what is going to happen in the upcoming years. That way, you will be able to decide whether or not Oklahoma real estate investing is a good idea.
Based on the data from the Freddie Mac Home Price Index report, you will see the recent home prices change in many areas of the United States, including Oklahoma City. And from that report, you will notice that the Home Price Index in Oklahoma City has always risen over the years. For example, the Home Price Index changed from 162.1 to 240.7 from April 2017 to April 2022.
From that data, you can also see a 48.4% change in home prices in Oklahoma City in only five years. The average yearly change in home prices in this city is around 17.1%, while the average monthly change is 1.3%.
Based on the most recent report by Kiplinger, Oklahoma City is a promising place for rental property investors. You can see this based on the impressive short-term home price changes and affordability rankings of this city.
Based on that report, the real estate market in Oklahoma City peaked in 2006, when the home prices increased by as much as 34.9%. The last time that the market bottomed was in March 2012. However, home prices have increased by as much as 35.6% since then. The affordability index of Oklahoma City is 2 out of 10, which means this city is one of the most affordable places you can find across the state.
Pros and Cons of Living in Oklahoma City
Now that you know all about the Oklahoma housing trends, you should understand the advantages and disadvantages of living in this city. Like any other city, Oklahoma City also has its upside and downside. Here are some of the pros of living in this city.
- Low Cost of Living. Oklahoma City is a very affordable city in the United States. The low cost of living is one of the reasons why this city is perfect for students and job seekers.
- Rapid Earnings Growth. People who are looking to make money will love Oklahoma City. The earnings growth in Oklahoma City is very strong and consistent.
After hearing about a couple of advantages of living in Oklahoma City, here are some disadvantages you might find in this city.
- Potentially Destructive Weather. Weather in Oklahoma City can be tricky because it is the heart of Tornado Alley. Although the risk of a destructive event is low, you might want to be careful if a storm hits this city.
- Isolation Due to Cultural Independence. One thing you might experience in Oklahoma City is isolation. However, it is only possibly true if you are culturally independent. The residents of this city take great pride in their culture. If anything, else comes along, you might feel a bit isolated.