Tulsa’s Rank in Real Estate
27 Sep 2022
A synopsis of the quarterly report, Tulsa Residential & Commercial Market Data, compiled and created by Dr. Ama Abrokwah, economist and director of research for the Tulsa Regional Chamber.
“Real estate plays an integral role in the U. S. economy. Residential real estate provides housing for families. It’s the greatest source of wealth and savings for many Americans. Commercial real estate, which includes apartment buildings, creates jobs and spaces for retail, offices, and manufacturing.” - The Balance
Residential Real Estate
The pandemic played its part with decreasing family incomes. At the same time, many residents saw savings and learned ways to restructure their budgets. During that time, Tulsa saw an increase in housing purchases, pricing and value.
Since 2018, housing prices have appreciated year after year. Tulsa’s median home price increased to $235,000 in 2022. That’s an 11.9% increase, which directly affects equity for existing homeowners. New homeowners who purchased in 2020 and 2021, are already seeing a worthy benefit in their asset.
Since October 2020, residential properties in Tulsa have stayed on the market for less than four months. In May 2022, residential properties stayed on the market for 1.7 months, resulting in the sale of 1,527 homes. From January - May 2022, nearly 6,568 homes were sold in Tulsa’s metropolitan area.
According to the Housing Opportunity Index, a household earning Tulsa’s median family income could purchase 80.4% of the homes sold in the first quarter of 2022. However, using this same median family income nationally, new homeowners could only afford 56.9% of the homes sold during the same time period. In 2020, the median household income was $57,024, according to the U. S. Census’ Quick Facts.
Commercial Real Estate
During the pandemic, some businesses were forced to close, while others were able to expand or tap into innovation birthing new businesses. Because of the shift, investors recorded a $217 million increase in sales in 2021, as rents grew 1.7%. This was the highest volume Tulsa’s commercial real estate market has seen since 2015.
Tulsa’s industrial sector serves as a point of strength. There is a high demand for logistics properties and a consistency in leasing. Vacancy rates remained low at 3.5%. At the same time, rents grew 8.2%. At the end of 2022’s second quarter, the industrial sector grossed $25.5 million in annual sales.
Tulsa’s post-pandemic road to recovery is bright and the region has celebrated several significant projects, including:
- Amazon opening a four-story, 2.5 million square foot distribution center and hiring 1,500 employees
- Milo’s Tea opening a production and distribution center, investing $60 million in manufacturing equipment and construction which will employ 100 employees once completed
- American Airlines invested $550 million to expand its Base Maintenance facility and are still committed to moving forward
- Sofidel Group completed its facility and employed 300 residents of Tulsa and Rogers counties.
Tulsa is Good for Business
The Tulsa region is booming with root-planting and growth opportunities. As CNBC noted in their 2022’s Top States for Business, Oklahoma ranked second for the “Cost of Doing Business” with an A+ grade and 14th for the “Cost of Living” with an A+ grade.
The real estate data confirms the cost of living is A+ worthy.