The whole state of Oklahoma is positioned to take benefits of the current economic expansion. However, the more important thing is probably the role of the housing market in Tulsa that will play in the state’s return to popularity. Tulsa real estate seems to be ready to continue the success it achieved last year into 2015 and beyond.
Forecasts remain positive for some reasons, such as the creation of new jobs, low unemployment rates, new housing starts, historically low interest rates, and enough land to accommodate an ambitious expansion. These factors, and other more ones, are enough proofing that the Tulsa real estate market will experience a prosperous year.
Tulsa at a Glance
Tulsa is the second largest city in the state of Oklahoma, United States. With a population of 413,066 residents as of the 2020 census, this city is the 47th most populous city in the nation. When you touch down Tulsa, you will find that the city is windy. Tulsa has a lot of coffee shops and small restaurants that still serve breakfast at $1.99. Here, you can enjoy seeing and exploring art deco architecture in the entire city.
Tulsa was once known as the world’s oil capital. Since then, the city has grown and developed into a modern metropolitan area, attracting plenty of attention from real estate investors Tulsa. Located in the Green County region of Oklahoma, Tulsa lies along the Route 66 and Arkansas River between the foothills of the Ozark Mountains and Osage Hills.
Whether your visit focuses on the arts with stops at the Woody Guthrie Center and Brady Arts Districts, or activities like an art deco Segway tour, you will leave with a new affinity for Tulsa. Though the city’s economy has been traditionally driven by the energy and oil industries, major industries now include high tech, manufacturing, finance, and also aerospace.
Back in 2019, Google announced a new investment in the metro area of Tulsa. And recently, Amazon opened a new 600,000 square-foot fulfilment center in this city with plans to build an additional Amazon facility.
Real Estate Market in Tulsa
Tulsa is a hot real estate market, according to the most recent statistic from the Greater Tulsa Association of Realtors. The median days on market from listing to contract is 8 days, while the median sales price increases 11.33 percent from year to year. Houses for sale in Tulsa are selling for the full asking price.
At the end of last year, real estate Tulsa continued to appreciate with the rest of the nation. In fact, homes in the Tulsa real estate market have done nothing but appreciate over 3 years. The city has been the beneficiary of 3 consecutive years of price growth. During that period, housing has been appreciated by as much as 13.9 percent. The median home price in Tulsa is $150,900 while the national average is above $215,000 at the same time.
The current median home price across the country is the result of a 28 percent appreciation rate over the past 3 years, which is almost twice of Tulsa. An influx of equity has been stimulating the housing market in Tulsa. Homeowners in the area are now able to consider more options. Some homeowners will be inclined to sell, now that they can afford to do so. Those at the lower end of the market may even be able to move up if newfound equity allows it.
Population Growth in Tulsa
The population in Tulsa has reached 1 million for the very first time, adding more than 7,000 new residents only in the last year. The median household income and property value are increasing, in which these two are fundamentals that are helpful for making rental property a good investment in the city. Below are some statistics about Tulsa metro population.
- The population Tulsa is more than 413,000, 413,066 to be exact as of the census back in 2020. The population comes with more than 1 million residents in the metro area, making Tulsa the second largest city in the state of Oklahoma.
- More than 25 percent of the Oklahoma population lives in the Tulsa Metropolitan Statistical Area (MSA).
- The population growth in the Tulsa metropolitan area has grown by 8.3 percent since 2010.
- Metro Tulsa spans across 7 countries, including Creek, Pawnee, Rogers, and Tulsa counties.
Job Growth in Tulsa
The job market in Tulsa was thriving with successes last year. As it is mentioned previously, Amazon recently opened its 3rd fulfillment center in this city and electric vehicle maker Canoo built a $400 million plant, creating 2,000 new jobs. In fact, the job market in Tulsa continuously grew throughout the last year, with the economy now just starting to recover. The cost of doing business in this city is 11 percent lower than the US average, thanks to the low rents, taxes, and energy costs.
Though it is not the same level as leading cities in the United States like Portland or Seattle, job sectors in Tulsa remain supporting the local economy. The local economic prospects remain incredibly positive, as jobs will continue to support both supply and demand within the real estate sector. In fact, the unemployment rate in Tulsa is one of the lowest in the nation.
At 4.6 percent, the unemployment rate in this city is more than an entire percentage point below the national average. The current unemployment rate in Tulsa shows a 1 percent improvement over a year, and experts project that number to improve. The current 1-year forecast suggests that the job growth rate will rise at 1.1 percent. Here are some statistics about job growth in Tulsa.
- The unemployment rate in Tulsa was at 2.2 percent as of October 2021.
- According to the Federal Reserve Bank of St. Lous, GDP of the Tulsa Metropolitan Statistical Area (MSA) is more than %51.9 billion and has grown almost 20 percent for the past 10 years.
- Forbes ranked Tulsa as one of the top places for careers and business back in 2019.
- The median household income in Tulsa was $57,859 and per capita income was $32,380 as of 2019.
- The target industries in the Tulsa metropolitan area include logistics, transportation, energy, aerospace and defense, and advanced manufacturing.
- Major companies in Tulsa with more than 1,000 employees include AT&T, AAON, Target, QuikTrip, OSU Medical Center, Baker Hughes, and BlueCross BlueShield of Oklahoma.
- The main employment sectors in Tulsa include manufacturing, retail, healthcare, and social services.
- The Tulsa metropolitan area has some of the largest universities and colleges in the country, such as Oral Roberts University, the University of Oklahoma, Oklahoma State University, and University of Tulsa.
- Almost 90 percent of the residents in Tulsa are high school graduates or higher. While nearly 29 percent has a bachelor’s degree or advanced degree.
Quality Life in Tulsa
Tulsa ranks one of the top 100 best places to live, ranking higher compared to other 1,000 cities with a population of less than a million residents. Tulsa World claims that the city is an affordable, under the radar city. Its art scene and historic downtown competes other cities twice its size. Tulsa International Airport offers direct connections to 17 cities in the United States. It is also served by 3 freight carriers.
The transportation network around the city includes 2 mainline railroads serving main industrial parks. For example, Interstate Highways I-44, I-40, and I-35, and the Tulsa Port of Catoosa.
- According to Forbes in October 2019, the Tulsa cost of living was 7 percent below the national average.
- Tulsa ranks the 89th best place to live and retire in the United States, according to the US News and World Report. A lot of people of Tulsa are proud to be lifelong residents.
- The Tulsa Remote Program offers remote workers $10,000 to move to Tulsa, with facilities including cash, specials on downtown rental housing units, and space in a top coworking community.
- Tulsa has the second fastest commute in the country for a big city, with an average time of just 20 minutes.
- The climate in the city is humid subtropical with temperate winters, dry summers, and wet springs.
- Tulsa is located in the Green Country of Oklahoma, at the foothills of the Ozark Mountains and along the Arkansas River, offering a gorgeous landscape.
Attractive Renters’ Market in Tulsa
As it is said before, cities like Tulsa proactively offer remote workers thousands of dollars to move to its metropolitan area via the program called the Tulsa Remote Program. This improves the rental market in the city. Here is some information.
- Rents in Tulsa have risen by 15 percent from year to year.
- The median rent in Tulsa is $1,295 per month for a 3-bedroom house, according to the most recent report from Zumper as of December 2021.
- Rent for a 3-bedroom home in Tulsa has increased by around 30 percent for the last 3 years.
- Renter-occupied households in the city reached 44 percent of the total occupied housing units.
- The cheapest neighbourhoods for renters in Tulsa include Carriage Trail, Suburban Acres, and Sequoyah, in which rents are $735 per month or less.
- Single-family housing makes up 73 percent of the housing units in the city.
- The most expensive neighbourhoods in Tulsa for renters include Sunrise Terrace, Stone Creek Farms, and Maple Heights, in which rents range from $1,650 to $2,011 per month.
Several neighbourhoods in Tulsa are doing better than others in the city’s housing market. The most popular neighbourhoods in this city are Maple Ridge, Lynn Lane, Turner Park, Minshall Park, and Folton. Of these neighbourhoods, Lynn Lane and Maple Ridge are the most popular ones, with listing prices of $541,401 and $209,906 respectively.
However, while these neighbourhoods have great popularity, one certain neighbourhood in Tulsa has been attracting attention recently. Real estate market investors who are interested in the housing market in Tulsa should take a look at Silver Oaks. It is because the average listing price has soared more than 97 percent in just a one-week period.
Historic Price Changes and Housing Affordability
The affordability of housing and historic change in house prices are 2 main data sets that real estate investors use to analyse potential markets for rental property investments. The monthly house price index report from FMHPI calculates the change in home prices for each metropolitan statistical area in the United States. The monthly house price index report compares the monthly change in home prices in each market by using December 2000 as a baseline of 100.
In October 2021, the FMHPI index for the Tulsa metropolitan area shows:
- October 2016 HPI: 137.2
- October 2021 HPI: 195.5
- Monthly change in home prices: 1 percent
- 1-year change in home prices: 15.3 percent
- 5-year change in home prices: 42.5 percent
Housing affordability is another main criterion used by real estate investors to forecast the future demand for rental housing in the market. Kiplinger, back in January last year, published its report of home prices in the 100 biggest metropolitan areas to point out how affordable housing is based on an affordability index of 1 to 10, with 1 being the most affordable and 10 being the least affordable. Affordability is based on the percentage of annual income needed to purchase an average-priced home last year.
The housing affordability index of the Tulsa metro housing market is 2. This makes the region among the most affordable places to own a house. Since the last peak of real estate, home prices in this city have risen by 23.4 percent and have grown by 37.8 percent since the last market lowest point.
Tulsa Real Estate Market FAQs
- Is Tulsa a Good Place to Invest in Real Estate?
Yes, the home prices in Tulsa reportedly continue to increase as the real estate market in the city starts to recover.
- Is Tulsa a Recommended Place to Live?
Tulsa is one of the cities in the United States with a good life quality. It has so many high-quality public facilities, including the largest universities in the country. The living cost here is low as well.