The Future of Oklahoma Real Estate

Oklahoma (the Sooner State) has the second lowest cost-of-living in the US (Mississippi takes the top spot). And, like Mississippi and Arkansas, the cost of housing is one of the lowest in the country. Oklahoma also boasts some of the lowest gas prices, and even utilities and grocery costs are below the national average.

Oklahoma Provides a Low Key Lifestyle

In addition to the low living-cost, driving around is super easy. This is because the state’s population is only 3.95 million, and most of the state doesn’t consist of massive overflowing cities, so “rush hour” isn’t really a thing.

What Are the Business Opportunities in Oklahoma?

There are several large companies operating in Oklahoma and employing thousands of people. While Oklahoma is traditionally regarded as having been built on oil, it is becoming much more innovative. Because of incredibly low rents, both Oklahoma City and Tulsa have surprisingly robust startup environments with many co-working spaces, incubators, and startup events. Oklahoma is a great place to launch a business.

Oklahoma City (Population 669,347)

Oklahoma City has one of the fastest growing job markets in the nation and is rated as one of the top ten US cities in which to raise a family. Long story short, people want to move there… and they are moving there. And, of course, this means they will want to buy homes.

Is It a Good Time to Buy a Home in Oklahoma City?

As of April 15, 2021, the median price of an average house in OKC was $144,021. This price is predicted to increase in the short- and long-term as follows:

This link provides a historical record of home prices between 2008 and 2021 and a monthly forecast out to March 2031.

Tulsa (Population 402,742)

Out of 100 metro areas analyzed by Forbes, Tulsa experienced the greatest increase in home prices over the prior two years. Median home prices increased 33% from $219,833 in September 2018 to $292,300 in September 2020. At the same time, Tulsa’s available inventory shrank from 4,400 homes to 1,863. In addition, the average number of days on the market diminished from 36 to just 11.

Southern Oklahoma

In the southern part of the state, homes for sale are also in limited supply and getting snapped up quickly. Bidding wars between buyers are common, and some homes sell above listing price. Here are some figures from the Southern Oklahoma Board of Realtors:

Another factor contributing to the limited number of properties is an influx of out-of-state buyers. Some buyers are looking to invest in rental properties or land to grow marijuana. There’s a huge rental market that’s very consistent when compared to big fluctuations that have occurred in other areas. Retirees, particularly those from North Texas, want to move into an area with lower home prices and property taxes.

Low Mortgage Rates Are Fueling the Oklahoma Real Estate Boom

A 30-year fixed-rate mortgage currently tends to have an interest rate of around 2.75% or 2.5%. This is a drop from the previous year’s rate of approximately 3.75%. While this might not seem like a dramatic change, a lower interest rate of 1% or 2% means substantially less in payments when spread over 30 years.