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Oklahoma City Real Estate Update - 2024



Comprehensive Real Estate Report: Oklahoma City, OK


Executive Summary

This report provides an in-depth analysis of the real estate market in Oklahoma City, OK, focusing on popular and fast-growing zip codes, crime rates and trends, economic and development plans, and demographic and population growth information. The findings are based on recent data and aim to offer a comprehensive overview for stakeholders interested in the Oklahoma City real estate landscape.


1. Popular and Fast-Growing Zip Codes

Oklahoma City has experienced a dynamic shift in its real estate market, particularly in rental properties. The pandemic has led to a seesaw effect on rent, with historically less expensive areas witnessing a surge in rental rates. According to Zillow's data, several ZIP codes have emerged as fast-growing in terms of rent prices. The ZIP code 73135 in Oklahoma City leads with an 8.2% year-over-year rent change and a significant 22.6% increase over five years, indicating a strong demand for rental properties in this area ("Zip codes with the fastest growing rent in Oklahoma," News on 6). Other notable ZIP codes include 73160, 74014 in Broken Arrow, and 74105 in Tulsa, all of which have seen substantial rent increases over the past year and five years, suggesting a trend of growing popularity and potential for real estate investment in these regions.


More neighborhoods and zip codes information are here


2. Crime Rate and Trend

The crime rate in Oklahoma City is a critical factor for real estate valuation and resident safety. The city's violent crime rate is one of the highest in the nation, with a one in 156 chance of becoming a victim of violent crime (NeighborhoodScout). Property crime is also prevalent, with a one in 33 chance of becoming a victim. However, it is essential to note that Oklahoma City's crime rate is lower than the average for comparably sized cities across America, indicating that it is safer than most large cities (NeighborhoodScout). The high rates of motor vehicle theft are a particular concern, with a one in 234 chance of car theft, which is among the highest in the nation (NeighborhoodScout). These statistics suggest that while Oklahoma City has challenges with crime, it remains relatively safe compared to other large urban centers.


3. Economy and Development Plans

Oklahoma City's economy is showing signs of momentum, with job growth and income rise contributing to its economic vitality. The Greater Oklahoma City Chamber's economic outlook report for 2024 forecasts a job growth slowdown from 2.4% in 2023 to 2% in the coming year, yet the population growth is expected to remain robust at 1.2% (Greater Oklahoma City Chamber). The per capita income is projected to increase by 4.7% to over $66,000, reflecting the city's economic resilience and entrepreneurial spirit. Statewide, Oklahoma has regained its pre-pandemic economic status, with goods and services produced reaching $203 billion in 2023. Urbanization trends and the strategic location along the Interstate-35 corridor position Oklahoma City favorably for long-term prosperity ("Job growth, income rise and young talent fuel Oklahoma City's economic momentum in 2024," VelocityOKC).


4. Demographic and Population Growth Information

Oklahoma City is experiencing significant population growth, retaining its position as America's 20th largest city and ranking as the 6th-fastest-growing among the top 20 cities from 2020 to 2022 (The Oklahoman). The city's growth rate of nearly 2% between 2020 and 2022, with an addition of 13,716 people, reflects its attractiveness as a place to live and work. The Metropolitan Area Projects program, with its focus on quality-of-life improvements and infrastructure development, is cited as a key factor in attracting new residents (The Oklahoman). The city's demographic shifts, including the influx of Mexican immigrants along the Interstate-35 corridor, are shaping the cultural and political landscape, with implications for the real estate market and urban planning ("Oklahoma Gazette").


5. Business Incentives in Oklahoma City

Oklahoma City offers a competitive array of business incentives designed to attract and retain businesses. These incentives are a mix of local, state, and federal programs aimed at reducing the cost of doing business and encouraging economic development.


  • Local Incentives
    The local incentives include the Oklahoma City Film Incentive Program, which provides rebates between 5% and 10% of qualified expenses for production and post-production activities (Greater Oklahoma City Chamber, n.d.). Additionally, Business Improvement Districts (BIDs) have been established in areas like Downtown, Stockyards City, Capitol Hill, and Western Avenue, where property owners vote for a special property assessment to enhance their communities.

  • State Incentives
    At the state level, Oklahoma offers the Quality Jobs Program (QJP) and the Strategic Investment Program (SIP), which are designed to support local companies that are expanding (Greater Oklahoma City Chamber, n.d.). The state also provides the Small Employer Quality Jobs Program, offering incentive payments to qualifying small employers.

  • Federal Incentives
    The Filmed in Oklahoma Act of 2021, administered by the Oklahoma Film + Music Office, offers a base incentive of 20% to projects that film principal photography in the state (Journal Record, 2024).

  • Additional Benefits
    Oklahoma provides grants for infrastructure financing to assist new business locations or expansions, New Market Tax Credits, and assistance with industrial access roads (Oklahoma Department of Commerce, n.d.).

6. Job Growth and Employment Information

  • Employment Statistics
    Oklahoma City's job growth is expected to slow from a 2.4% pace in 2023 to 2% in 2024. Despite this, the city's population growth is predicted to remain strong at 1.2%, and per capita income is expected to grow by 4.7% to more than $66,000 (Velocity OKC, 2024). The total labor force was the largest in history at 752,000 in 2023, with an unemployment rate of 2.9%, one of the lowest rates since 1990 (Velocity OKC, 2024).

  • Sector-Specific Growth
    The largest percentage of job growth was in education and health (6%), leisure and hospitality (4.8%), construction (3.2%), manufacturing (2.7%), government (2%), and mining/oil and gas (2%) (Velocity OKC, 2024). However, a decrease in job postings in December 2023 suggests a potential slowdown in future hiring intentions.

7. Major Employers and New Business Movements

  • Existing Major Employers
    Oklahoma City's diverse economy is reflected in its top employers, which include the State of Oklahoma, Tinker Air Force Base, University of Oklahoma, and INTEGRIS Health. Other leading private employers headquartered in OKC include Love's Travel Stops & Country Stores, Paycom, and Hobby Lobby (Greater Oklahoma City Chamber, n.d.).

  • New Business Movements
    In 2023, Oklahoma saw 71 announcements for new and expanding companies statewide, with a potential investment of $7.8 billion and the creation of at least 6,532 new jobs. Seventeen of these companies are establishing a new presence in Oklahoma (Oklahoma Department of Commerce, n.d.).

8. Large Residential and Commercial Development Projects


  • Commercial Developments
    Oklahoma City's commercial sector is witnessing substantial growth, with several large-scale projects underway. The MAPS 4 initiative is injecting $1.1 billion into municipal, beautification, and human services projects over the next four years, which is expected to drive further development (ENR, 2024). Notably, the new Horizon District, anchored by the $400-million OKANA Resort and Indoor Waterpark, is set to open in early 2025, promising to be a significant attraction (ENR, 2024).

The Broadway at Bricktown proposal and a new arena for the Oklahoma City Thunder basketball team, estimated at $900 million, are among the most anticipated projects. The arena is backed by a recently approved 1% sales tax, reflecting strong community support for public funding (ENR, 2024).


  • Residential Developments
    In the residential sector, the Bricktown entertainment district is set for expansion with housing, businesses, luxury hotels, and various amenities. Early renderings show a 22-floor, 480-key Hyatt Dream hotel; two 23-floor apartment buildings with 764 residential units; and a 134-story luxury apartment tower with 1,528 housing units, including 48 units of affordable housing (Construction Dive, 2024).

The Boardwalk at Bricktown is another mixed-use project planned for lower Bricktown, which could feature the tallest building in the United States at 1,907 feet. This development is expected to include more than 100,000 square feet of commercial, retail, and restaurant space (VeloCity, 2024).


9. New Construction Communities and Builders


Communities and Builders


The Oklahoma City area is expanding with new home developments, particularly in Yukon, just west of the city. Despite challenges such as the pandemic and higher interest rates, job growth and a rebounding economy are contributing to the continued growth of new households in the market (New Home Source, 2024).


Builders are responding to the demand with new construction communities. For instance, a new home in NW OKC, minutes from downtown, blends modern luxury with the historic charm of the Sequoyah neighborhood. Another stylish new construction in Deer Creek Schools offers a 3-car garage and 4 bedrooms, with the builder covering all closing costs and installing a storm shelter for contracts closed before March 31st (Redfin, 2024).


10. Inventory and Price Trends

As of December 31, 2023, the average home value in Oklahoma City stood at $194,318, reflecting a 3.6% increase over the past year. The market is active, with 1,623 homes listed for sale and 482 new listings by the end of December 2023 (Norada Real Estate, 2024).


The Oklahoma City housing market remains favorable for sellers, with the average price rising to $286,146. The stability in total closed transactions, dollar volume, and pricing suggests a resilient housing market (Norada Real Estate, 2024).


In January 2024, 551 homes were sold in Oklahoma City, with 52% of homes sold within 30 days. The median sold price was $249,946, up 2% from the previous year, and the median price per square foot was $149 (Rocket Homes, 2024).


The Oklahoma City housing market is somewhat competitive, with homes receiving an average of 2 offers and selling in around 45 days. The median sale price was $260K last month, up 4.0% since last year, and the median sale price per square foot is $154, up 4.8% since last year (Redfin, 2024).


Conclusion


Oklahoma City's real estate market showcases growth in rental rates, particularly in specific zip codes, which may offer lucrative opportunities for investors and developers. Despite facing challenges with crime, the city maintains a relatively safe environment compared to other large cities, and ongoing efforts to enhance safety could bolster its appeal. A positive economic outlook, driven by job growth, rising incomes, and population expansion, signals a robust market, influenced by demographic shifts and urbanization trends that attract new residents. These factors should be carefully considered by stakeholders when making real estate decisions in Oklahoma City.


The city's strategic approach to economic development, marked by robust business incentives, a growing workforce, and a welcoming environment for new businesses, positions it favorably for sustained growth. Oklahoma City's ability to attract diverse industries, ranging from film and music to healthcare and manufacturing, underscores its economic resilience and potential for long-term prosperity.


In terms of real estate, Oklahoma City's market is thriving, witnessing significant commercial and residential developments that contribute to its overall growth. Initiatives like MAPS 4 and the development of the new Horizon District drive commercial expansion, while projects such as the Bricktown entertainment district expansion and the Boardwalk at Bricktown reshape the city's skyline.


The emergence of new construction communities caters to the demand for modern and luxurious living spaces. Despite economic challenges, market trends indicate a seller's market, characterized by steady growth in home values and a competitive environment for sales.


For investors, developers, and homebuyers, closely monitoring Oklahoma City's real estate market is imperative, as it offers numerous growth and investment opportunities. The city's commitment to development and community support for public projects sets the stage for a promising future in real estate.


To see more Oklahoma City neighborhoods, click here


References


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