Tulsa Rental Market Update.
The National Association of Realtors has released an article discussing how increasing rental prices are squeezing renters’ pocketbooks nationwide. Contained within the article are some very interesting statistics on 70 metro areas nationwide, including Tulsa. Here is the Tulsa Rental Market update:
% Change in Rents, 3rd Qtr 2009 – 3rd Qtr 2014: 11.03%
% Change in Renter’s Income, 3rd Qtr 2009 – 3rd Qtr 2014: 17.05%
Median Home Price, 4th Qtr 2014: $148,700
% Change in Number of Rental Households (2009 – 2013): 5.69%
% Change in Number of Owner Households (2009 – 2013): -11.59%
*The Median Household Income for renters 25-44 years old for 2014 was projected assuming 2% growth from 2013 estimates.
**Mortgage payment is based on 90% loan-to-value ratio and the first-time homebuyer purchases a lower priced home equal to 85% of the median value for single family homes. The monthly mortgage payment includes payment for the upfront mortgage insurance premium, the monthly premium, and payment for real estate taxes. Computations do not take into account the interes t and real estate tax deduction.
***Median Home Price Q4 2014 is calculated based on the sales price of the Existing Single – Family Homes.
Sources: NAR, REIS Inc., U.S. Census Bureau
Home Finders Commentary:
Tulsa has had steady rent appreciation over the last several years, although the 11.03% increase in rents over that time frame is lower than the national average of 15.04%. Renter household income has done quite well in the Tulsa area, as the 17.05% increase for rental households bests the national average of 11.17%. So it can be said that Tulsa renters are not feeling the “squeeze” as much as in other metro areas. What impact sagging oil prices will have on renter income levels is yet to be seen.
The number of rental households has increased steadily over several years, following the nationwide trend of more renters, and less homeowners. The increase in renters and decrease in homeowners was not as dramatic as seen in other metro areas, as both changes are lower than national averages.
Median home prices in Tulsa ($148,700) remain significantly below the national average of $208,700.
The combination of factors found in this report leads us to believe that Tulsa will continue to have strong interest from real estate investors looking for yield, where they can find reasonable purchase prices and a steadily increasing rental market. However, the impact of oil prices on local economic conditions is yet to be seen and we will be keeping a close watch.