If you’ve seen the news, the Oklahoma City housing market is bonkers right now. And yes, that’s the technical term.
According to Realtor.com, the Oklahoma City market saw the nation’s second-largest year-over-year decline in newly listed homes for the month of March. And according to MLSOK, Inc., the trend continues. April saw a 54% year-over-year decrease in the number of homes for sale. Inventory is crazy low! Couple this with the high demand– almost 29% more homes sold in OKC last month compared to the same period last year– and it means it’s hard for investors to find good deals. As a result, the average price of a home in OKC has increased by almost 12% since last year. If you do come across a good deal, you must react not in days but hours to win the contract.
What about the Oklahoma City rental market, you ask? Well, it is experiencing some of the same trends. Inventories are down, and demand is strong. According to a Zillow search this morning, there are only 420 single-family homes listed for rent in the OKC metro area. That’s from Edmond to Norman. And Yukon to Choctaw. Add to that data from the US Census Bureau (https://www.census.gov/housing/hvs/data/rates.html) indicating the Oklahoma City vacancy rate for Q1 of this year was the lowest it’s been in 6 years! That’s even more bonkers. Again, it’s a term. Look it up!
What does it all mean? Low inventory and high demand are pushing rental rates up, which is what we have been seeing with the properties we manage. According to Zillow data, the average rent increased by more than 5% over the last year in the OKC area. That outpaced the national average by 2% (that’s a 76% relative increase).
While it may be a tough market for buyers and acquisition prices are up, this is being offset by low vacancies and higher rent rates. In addition, Oklahoma City is growing. It is now the nation’s 25th largest city (https://www.oklahoman.com/article/5662870/oklahoma-city-now-nations-25th-largest-city), and according to abetterlifeokc.com, the metro area has grown twice as fast as the national average. This growth coupled with other demographic factors and the rental statistics above leads us to predict the Oklahoma City metro area will remain a desirable market for rental properties for the foreseeable future. This is great news for rental property investors.
All County® Heartland Property Management specializes in residential property management and helping rental property investors maximize their returns. To find out how we can help you make the most of your rental property or navigate this challenging but exciting market give us a call at 405-444-8844.