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Oklahoma City's Rising Home Values and Stable Ownership Rates: A Cowboy Capital's Housing Market Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Oklahoma City, the capital and largest city of Oklahoma, is a vibrant metropolis known for its rich cowboy culture, oil industry heritage, and resilient spirit following the 1995 bombing. With a population of 694,768 in 2022, this sprawling city has experienced steady growth over the past decade. The homeownership rate has remained relatively stable, hovering around 58-60%, while average home prices and average rent prices have shown consistent increases.
The relationship between homeownership rates and average home prices in Oklahoma City reveals an interesting dynamic. In 2013, the homeownership rate was 58% with an average home price of $105,280. Despite a significant rise in average home prices to $189,294 by 2022, the homeownership rate remained stable at 58%. This suggests that Oklahoma City's housing market has remained relatively affordable for its residents, even as property values appreciated.
Federal interest rates have played a role in homeownership trends in Oklahoma City. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a slight increase in homeownership from 58% to 59%. As interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership peaked at 60% in 2017 before settling back to 58% in 2018. This pattern indicates that low interest rates may have encouraged homeownership, but other factors also influence this metric in Oklahoma City.
Renter percentages and average rent prices in Oklahoma City have shown a correlation with population growth. In 2013, 42% of residents were renters, with an average rent of $747. By 2022, the renter percentage remained at 42%, but the average rent had increased to $1,020. This 36.5% increase in average rent over nine years aligns with the city's population growth from 610,617 in 2013 to 694,768 in 2022, suggesting that housing demand has kept pace with supply.
The most recent data from 2023 and 2024 shows continued growth in the Oklahoma City housing market. The average home price reached $200,027 in 2023 and further increased to $205,208 in 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and average rent prices in Oklahoma City. Based on historical data and current economic conditions, average home prices could potentially reach $235,000 to $250,000 by 2029. Average rent prices may increase to the $1,200 to $1,300 range over the same period, assuming consistent population growth and economic stability.
In summary, Oklahoma City's housing market has demonstrated resilience and steady growth. The stability in homeownership rates despite rising home prices suggests a balanced and affordable housing market. The consistent increase in both average home prices and average rent prices, coupled with population growth, indicates a healthy demand for housing in the city. As Oklahoma City continues to develop, these trends are likely to persist, making it an attractive market for both homeowners and investors.
