Tulsa comes from the Muscogee word for “old town.” But many new real estate opportunities in Tulsa make it a “vibrant town” for families and investors.
Situated on the Arkansas River and in the foothills of the Ozark Mountains, Tulsa is the second-largest city in Oklahoma. The city boasts a robust economy fueled by finance, aviation, telecommunications, and technology industries.
Tulsa is also home to two art museums, full-time opera and ballet companies, and two major institutes of higher education. Add it all up, and the Tulsa housing market is worth a look.
What is the Tulsa real estate market like today? Online real estate search site Rocket Homes says the median home sold price in Tulsa went up to $225,693 in December 2023. This represents a 2.6% year-on-year increase.
Rocket Homes also finds that when a Tulsa home goes on the market, the average sale time is 21 days. Last year, it was 20 days. That is good news for buyers and sellers who want to make the home-buying process happen quickly.
The sale-to-list price ratio in September provides a good look at the Tulsa, OK, housing market. Of the total number of homes sold, 143 went for under the asking price, 87 sold at the asking and 106 bumped over the asking price.
Factors That Will Impact the Tulsa Housing Market
The key trends driving the Tulsa housing market are the same factors that impact every major metropolitan city. Those factors can be broken into two primary categories: The local economy and the housing inventory.
Economic Growth
The aerospace and aviation sector, supported by companies like American Airlines, Spirit AeroSystems, and NORDAM, has significantly contributed to the city’s economy.
Moreover, the energy industry, which historically played a dominant role, continues to be a major contributor to Tulsa’s economic growth with companies like Williams Companies and ONE Gas.
The healthcare industry is also a major contributor to Tulsa’s economy. It is where you’ll find organizations such as Saint Francis Health System and Hillcrest HealthCare System that have been expanding and catering to the growing demand for medical services.
Job Market
From 1920 to 1940, Tulsa was known as the “Oil Capital of the World.” Tulsa pivoted to the aircraft and aerospace business when that industry shifted to offshore operations. Today, there are around 300 aviation-related companies in Tulsa.
There are other major manufacturers, such as Ford and Whirlpool, that help keep Tulsa’s current unemployment rate at 3.3%, according to BLS. According to the job search engine Zip Recruiter, the average annual salary for a Tulsa resident is $49,459. That breaks down to around $4,121 a month or around $23 an hour.
Population Growth
The U.S. Census Bureau estimates Tulsa’s population at 411,867. That number is 0.3% lower than the 2020 census and could affect the supply and demand for housing in Tulsa.
Online real estate site Redfin notes that just 19% of Tulsa homebuyers searched properties outside of Tulsa. That means 81% of prospective buyers were looking to stay put.
Redfin also finds that a lot of folks are moving into Tulsa from Los Angeles, Dallas, San Francisco, Washington D.C., and Seattle. Between July and September, 534 families from those cities call Tulsa home.
How is the Tulsa population expected to grow in the coming years? The Harvard Business Review reports that around 2,000 people have taken advantage of Tulsa Remote in the last four years. It is a program that pays workers $10,000 to move to Tulsa.
Typically, those workers are young singles or young couples just starting a family. If those relocation trends continue, it will continue to put a demand on housing inventory throughout Tulsa.
Interest Rates
Financial resource Bankrate recently polled a group of experts to look at interest rate trends. Around 90% of the experts agree that interest rates will continue to tick up in the coming months and into next year. That will have a direct impact on the Tulsa mortgage rates available to home buyers.
Supply and Demand for Housing
Rocket Homes provides a snapshot of the Tulsa housing inventory. In August, there were 1,520 homes on the market. That number dropped 4.9% to 1,445 in September. With the influx of remote workers and major industries looking to hire staff and executives at all levels, the demand for housing in Tulsa is expected to rise.
Forecast for the Tulsa Real Estate Market
Rocket Homes classifies the Tulsa, OK, housing market as a seller’s market. That means the number of houses on the market is lower than the number of interested buyers. It is why those homes only stay on the market for three weeks.
What is the outlook for the Tulsa real estate market in the coming years? Norada Real Estate Investments predicts that the Tulsa housing market could experience a 6.8% growth by the summer of 2024. That makes investing in a Tulsa home right now a good move.
Home Prices
As mentioned above, Tulsa home prices are up 4.6% from this time last year. When more buyers enter the market, you can expect those prices to continue to rise.
Of course, location will always be a contributing factor to home prices. Real estate search site Zillow has a breakdown of median prices in some of the most popular Tulsa neighborhoods:
· Mayo Meadow $202,429
· Lortondale $212,507
· Sunrise Terrace $188,259
· Wedgewood $237,532
· Florence Park South $284,218
· Hoover $192,014
· Fair Heights $190,336
· Highland Park $248,285
· Florence Park $302,785
Sales Volume
Several factors are expected to influence sales volume in Tulsa. The health of the nation’s economy is crucial to the housing market in Tulsa. Fortunately, Tulsa has proven to be resilient when it comes to navigating those economic changes. As Tulsa’s population grows, there will also be an increase in demand for housing in the area.
To enhance their prospects of selling their homes swiftly and at favorable prices, sellers in Tulsa can employ various strategies. That starts with ensuring that their property is well-maintained and visually appealing. Enhancing curb appeal and making necessary repairs or renovations can make a notable difference.
Pricing the home based on the current market conditions and recent comparable sales is crucial to attract serious buyers. Working with experienced and knowledgeable real estate agents who have a comprehensive understanding of the Tulsa market can also be beneficial.
These agents can effectively market the property, leverage their networks, and guide sellers through the complexities of the selling process. Additionally, providing flexibility for showings and considering incentives such as covering closing costs or offering a home warranty can incentivize potential buyers and increase the likelihood of a timely and profitable sale.
Rental Market
The first place many new Tulsa residents will move into will be a rental. Rental resource RentCafe finds the average rent in Tulsa is $925 a month. That represents a slight increase over the average monthly rates for this same time last year. There are renters in 48% of Tulsa households.
The same factors that impact the housing prices will impact the rental market in Tulsa. Higher demand means landlords can charge a premium price.
To attract and retain tenants, landlords in Tulsa can implement various strategies. Regular property maintenance, prompt resolution of any issues or concerns, and ensuring a safe and comfortable living environment can help attract and retain tenants.
Offering competitive rental rates based on local market trends and providing transparent and fair lease terms can also appeal to potential tenants.
Commercial Real Estate
All those Tulsa businesses hiring and expanding will need space to work in. That makes an investment in Tulsa commercial properties a potentially rewarding prospect.
Financial analyst Cushman & Wakefield reports that the Tulsa office rental rates per square foot went up $0.06 to make an average of $17.07 per square foot. The Tulsa industrial market generated $26.6 million in annual sales, which translates into another strong year.
Tulsa Housing Market Comparison With Other Cities
The more information a homebuyer collects, the less likely they will experience buyer’s remorse with a new home. While researching homes in Tulsa, a homebuyer can decide better by understanding the nearby markets.
Property resource Best Places finds that the Tulsa median home price is $179,100. In Oklahoma City, that price goes up to $187,700. In neighboring Wichita and Kansas City, those prices are $172,400 and $163,900. Those prices are worth considering, especially if you have flexibility with remote work or you’re looking for a retirement home.
Tulsa, OK, Is an Okay Place to Call Home
As a city, Tulsa offers a lot of benefits, from decent-paying job opportunities to a vibrant cultural scene. Tulsa home prices also make it a viable option for families to find a place close to work, schools, and other great neighborhood amenities. Tulsa also provides decent opportunities for investors who want to capitalize on rental properties for residents and businesses.
Those buyers and investors must act fast when identifying a property that aligns with their needs. In a seller’s market, demand is high, and inventory is low. That sets up the conditions for a bidding war that can be won with decision actions.
Once a deal is closed on a Tulsa home, the new owners can be confident that they’ve made a great deal and found a place where they can build a future for their family.
