Invest in Oklahoma Real Estate: Best Property Investments

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Added on July 16, 2024

Oklahoma, ranked as the fourth most affordable state in the USA, offers an unparalleled opportunity for those considering real estate investing in Oklahoma¹. With a unique combination of affordability, growing population, and landlord-friendly policies, the Oklahoma property investment landscape is rich with potential. For investors seeking lucrative ventures, Oklahoma City stands out with a median sale price of $200,000 and a population growth rate of 1.6%¹. These factors contribute to an attractive market for both residential and commercial real estate investments.

Key Takeaways

Oklahoma is the fourth most affordable state in the USA¹.
Oklahoma City features a median sale price of $200,000¹.
Population growth rate in Oklahoma City is 1.6%¹.
The state offers landlord-friendly policies.
Median home price in Oklahoma City is significantly lower than the national average².

Why Invest in Oklahoma Real Estate?

Real estate investing in Oklahoma presents numerous advantages for investors seeking lucrative opportunities. From its significant population growth to its affordable real estate market, Oklahoma stands out as a prime destination for real estate investment.

Population Growth and Stability

Oklahoma City is a key example of this growth, with its population reaching 643,648 by 2017 and showing a 1.7% increase between mid-2015 and mid-2016³. The Oklahoma City metro area, boasting a population of 1.4 million in 2015, demonstrates robust growth trends³. Additionally, demographic factors such as the presence of the University of Oklahoma with over 30,000 students in Norman contribute to a steady influx of residents⁴. These statistics indicate a stable and burgeoning real estate market suitable for long-term investments.

Affordable Real Estate Market

One of the major draws for real estate investing in Oklahoma is the affordability of its housing market. The median home sale prices have consistently appreciated by approximately 4% annually since the 2009-2010 housing crash, showcasing steady growth³. Investors looking at Oklahoma real estate investment opportunities will find attractive price points, like Oklahoma City’s median home price around $200,000 and Midwest City’s around $150,000. Furthermore, the median rent in the Oklahoma City metro area was $872 per month in 2019³, making rental properties a viable and profitable option for investors looking to create a steady income stream.

Landlord-Friendly State

Oklahoma is recognized as a landlord-friendly state, which adds to its appeal for Oklahoma property investors. With balanced property management laws and lease enforcement regulations, real estate investing is facilitated, offering peace of mind for landlords. The rental housing market in Oklahoma City is notably tight, with a vacancy rate of 8.5% in 2017 and renters comprising 41.8% of the metro area’s inhabitants in 2019³. These favorable conditions make Oklahoma a compelling choice for investors seeking stable and profitable rental income streams.

Learn more about real estate investing in Oklahoma City opportunities and discover how this dynamic market can be part of your real estate portfolio. For beginners looking to diversify their investments, real estate investment allows for diversification of⁵, providing a balanced and profitable strategy.

Best Cities to Invest in Oklahoma

Oklahoma investment properties

When scouting locations for investment properties in Oklahoma, several cities stand out due to their diverse opportunities and attractive market dynamics.

Oklahoma City

Oklahoma City real estate presents a prime opportunity for investors. With a population of 643,692 and median home sale prices around $230,000, the city sees consistent demand for rental properties with median rents for 3-bedroom homes at $871⁶. Oklahoma City’s population growth of 1.4% and employment growth of 0.5% further reflect its vibrant market⁷. Highlighting its diverse sectors, including energy, aerospace, and healthcare, this locale offers solid returns on real estate investment properties⁸ in Oklahoma. For further details, consider the extensive city report.

Tulsa

Tulsa investment real estate is renowned for its affordable prices and diversified economy. The city’s real estate scene is bolstered by sectors such as energy, healthcare, and technology⁸. Investing in Tulsa yields promising results, especially with its historical affordability compared to larger urban centers⁸.

Edmond

Edmond residential real estate investment is highly sought after because of its suburban charm and proximity to Oklahoma City. With a population of 92,009 and median home sale prices around $319,900, Edmond offers higher-end investment opportunities⁶. The median rent is also favorable at $1,047, reflecting a well-balanced rental and ownership market⁶. Edmond’s low crime rates and high-quality public schools make it particularly attractive for families⁸. Additionally, its location north of Oklahoma City provides residents easy access to urban amenities while maintaining a suburban environment.

Beyond these top cities, other locales like Norman, which boasts a population of 122,837, median home sale prices roughly at $226,000, and average rents of $876, also represent strong investment potential⁶⁷. Norman’s unique appeal includes the University of Oklahoma and an employment growth of 0.5%⁷, making it a viable option for diversified real estate investments such as rental properties.

For a detailed look at why these locations are optimal for investment, consider reading more about the best cities to invest in.

Types of Real Estate Investment in Oklahoma

Residential real estate in Oklahoma

Investors in Oklahoma have a variety of real estate investment types to consider, from residential properties to commercial ventures. Each type offers unique opportunities and benefits. Here’s an overview of the primary investment options available:

Residential Real Estate

Residential real estate investment in Oklahoma caters to a broad spectrum, including rental properties for students and families, as well as homes for those looking to settle down permanently. Real estate appreciates over time, increasing property value automatically⁹. Many buyers utilize financing contingencies such as FHA loans and VA loans, making their purchases safer¹⁰. Preapproval for loans can indeed enhance the competitiveness of a buyer’s offer, even though it’s not mandatory¹⁰.

Residential real estate in Oklahoma transactions often use OREC standard residential form contracts, making them streamlined and efficient for established properties¹⁰.

Typical strategies for investors include being a landlord for rental properties, generating recurring rental income, or flipping undervalued properties for profit⁹. Additionally, Oklahoma’s strong renter market and healthy job market attract a substantial number of students and job seekers, particularly in places like Norman¹¹.

Commercial Real Estate

Oklahoma commercial real estate investment opportunities encompass retail spaces, office buildings, and industrial properties. Investors can profit through property appreciation, rental income, and property flipping⁹.

Norman’s location, just 10 miles from Oklahoma City, offers investors affordable property prices and a manageable commute, which significantly adds to the appeal of commercial investments in this region¹¹. Furthermore, as job growth continues in Oklahoma City, the demand for commercial spaces is likely to rise, promising attractive returns for investors.

Investors keen on diversifying their portfolios often turn to commercial real estate for its potential higher returns, especially in neighborhoods showing signs of progress, such as new amenities and developments¹¹. Additionally, leveraging professional property management services can facilitate the efficient handling of rental properties, particularly for novice landlords¹¹.

No matter the type, factors like location, economic strength, median income, and home prices play crucial roles in determining the best choices of real estate investment in Oklahoma. Investors must develop a long-term strategy and implement focused short-term tactics to achieve their goals⁹.

Best Time to Invest in Oklahoma Real Estate

Timing plays a crucial role in maximizing returns for Oklahoma real estate investors. The state offers a unique window for investment, with the end of fall, particularly October, being an ideal period. During this time, inventory levels typically rise while demand drops, creating opportunities for favorable deals and lower median home prices. This seasonal trend makes it an attractive time for those considering investing in Oklahoma real estate.

It’s also worth noting that the year-end months, such as November and December, often come with lower property prices. The festive season can reveal appealing offers, making it a strategic period for acquiring investment properties in Oklahoma. For detailed insights on market trends, visit real estate investing in Oklahoma City.

It’s important to stay informed about other factors, such as economic conditions and national events like the COVID-19 pandemic, which can impact the best timing for investments. As Oklahoma’s housing market continues to show growth—home prices in Oklahoma City have grown by approximately 6.5% year-over-year as of 2024¹² and in Edmond by 9%¹³—investors should monitor these indicators. Oklahoma property values have risen by 44.89% in the last five years, reflecting a strong and growing market¹³. For additional data and market analysis, explore the Oklahoma real estate market and keep abreast of market dynamics.

Ultimately, while fall presents a clear opportunity, the best timing will depend on individual circumstances and the specific market conditions you are targeting. By leveraging data and staying updated on market trends, Oklahoma real estate investors can strategically navigate and optimize their investments within this thriving market. For a comprehensive list of the best cities for investing, be sure to visit best cities for investing in Oklahoma real.

FAQ

Why should I consider investing in Oklahoma real estate?

Oklahoma boasts one of the most affordable living costs in the United States, ranking as the fourth most affordable state. The combination of affordable real estate, landlord-friendly policies, and the potential for positive cash flows and profit opportunities make it an attractive option for investors.

What are the best cities to invest in Oklahoma?

Oklahoma City, Tulsa, and Edmond are among the top cities for property investment. Oklahoma City offers considerable growth and competitive real estate prices. Tulsa is recognized for its diversified economy and urban revitalization projects. Edmond is known for its excellent public schools and upscale property investments.

What types of real estate investments are available in Oklahoma?

Investors can choose from residential real estate, such as rental properties for students and families or forever homes, and commercial real estate, including retail spaces, office buildings, and industrial properties. Other options include raw land, crowdfunding platforms, and REITs.

Is Oklahoma considered a landlord-friendly state?

Yes, Oklahoma is known for its landlord-friendly policies, offering balanced laws concerning property management and lease enforcement, which is beneficial for property investors.

How has Oklahoma's population growth impacted real estate investment?

Oklahoma has seen a steady population increase, with Oklahoma City experiencing an 11% growth over the past decade. This growth instills confidence regarding the stability and potential appreciation in the real estate market.

How affordable is the real estate market in Oklahoma?

Housing costs in Oklahoma remain significantly below national averages. For instance, the median sale price in Oklahoma City is 0k, while in Midwest City, it's around 0k. This affordability offers various investment opportunities across different budget ranges.

What is the best time to invest in Oklahoma real estate?

The end of fall, particularly October, is considered an optimal time to invest. Increased inventory and decreased demand during these months can lead to favorable deals and lower median home prices. Other good times include year-end months like November and December, due to lower property pricing and potential festive season offers.

What are the key factors to consider when investing in Oklahoma real estate?

Important factors include location, economic strength, median income, and home prices. These elements play significant roles in determining the best real estate investment choice in Oklahoma.