OKC’s Rental Market is More Than OK
Oklahoma City may not be the first city that comes to mind when you think of hot rental markets. Surprisingly, Oklahoma City has become one of the best rental markets in the U.S. because of its relative affordability for both renters and real estate investors alike.
Like other real estate markets, Oklahoma’s state capital has experienced increases in its rental and real estate markets over the past year.
Despite shrinking inventory, Oklahoma City’s real estate market continues to boom, with the number of new listings up 4% from March 2021 and median home prices up only 8.5% YOY, according to the Oklahoma City Metro Association of Realtors.
The Oklahoma City real estate market is notable for how affordable real estate is. Despite a steady home price appreciation, Oklahoma City’s appreciation rate falls below the national average of 14.5% YOY.
WalletHub ranked Oklahoma City among the best rental real estate markets because of its strong sales activity and favorable outlook. Out-state-investors are buying nearly 11% of the homes listed for sale, which has helped create a strong rental market.
Among its accolades, Oklahoma City has also been ranked as one of the best cities for renters; nearly 44% of the population rents. Oklahoma City has a large student and military population, which has helped the rental market remain strong. Due to remarkable growth, the time to get in on Oklahoma City investment real estate is now.
Oklahoma City holds a lot of opportunities for real estate investors interested in investing in rental properties in the Cinderella City. Job, economic, and population growth are three of the main drivers keeping the rental and real estate market strong over the long term for real estate investors. The Oklahoma City rental market is poised for growth and there is no end in sight.
OKC is Growing
The growth in Oklahoma City is unmistakable. Not only is the city’s population expanding, but so are the job and economic sectors.
The most recent U.S. Census Survey found that Oklahoma City’s population grew three times faster than Oklahoma’s and two times faster than the U.S.’ overall population. According to the survey, Oklahoma City has grown by more than 17% over the past decade.
Based on an annual population growth rate of 1.55%, the Oklahoma City metropolitan area will be home to 1.52 million people by 2023 and will have nearly 2 million residents by 2040.
Oklahoma City’s population growth is important because it creates momentum that brings more entrepreneurs, employers, and retail. For investors, that all combines to create more real estate investing opportunities in Oklahoma City.
Job & Economic Growth
The job market in Oklahoma City has grown right along with the population. More than 300,000 new jobs have been created over the past 10 years. Forbes ranked Oklahoma City as one of the best places for businesses and careers and among the top cities where the cost of doing business is low.
Government, defense, and the natural resources sectors are the largest economic drivers in Oklahoma City. The city’s major employers include the state and city government, the Federal Aviation Administration, and United States Air Force – Tinker AFB.
Because of business-friendly government incentives designed to grow the job market, aviation, aerospace, bioscience, financial services, and international trade sectors should keep the economy diverse and the housing market robust over the long term.
In Oklahoma City, investors will notice that the unemployment rate and cost of living are low – which means people are working and able to afford a good place to live. The Bureau of Labor Statistics reported a 2.5% unemployment rate in April, while the cost of living is still 14% below the national average.
A Market Made for Real Estate Investors
Oklahoma City’s rental market is made for investors, easily belonging to the category of best rental markets in the US. It’s one of the top 10 markets where first-time buyers are battling investors for homes, because there simply isn’t enough supply to meet demand.
With its steady growth, affordable living, and robust employment options, real estate investors buying and holding cash-flowing rental property for the long-term may find exactly what they’re looking for in Oklahoma City.
When it’s time to fund your next rental, don’t visit just any hard money lenders in OKC. Let Lima One help you get the funding you need. Our rental loan program has multiple loan options and some of the most competitive terms in the industry.
Regardless of your real estate investment strategy, Lima One can help. From private lending to rental property loans, our loan options are designed to cater to our client’s individual investment needs. Contact us today to discuss your next deal, or if you have a deal in hand, accelerate the process by applying now.