Tulsa 3Q23
Multifamily Market Report

$975

average rent

94.7%

average occupancy rate

$273.0M

ANNUAL sales volume

3.2%

YoY rent change

-1.1 POINTS

yoy occupancy change

10 ANNUAL

individual transactions

Supply & Demand

3Q23

98 Units

QUARTERLY DEMAND
YTD: -48

60 Units

QUARTERLY COMPLETIONS
YTD: 198

Annual Demand vs Completions

2018
1,793
317
2019
1,321
270
2020
1,454
830
2021
1,147
0
2022
-1,357
503
2023 YTD
-48
198
  • Planned
    Completions
  • Pre-Planned
    Demand

Demand Trends

  • Positive net absorption persisted into the third quarter, with a net gain of 98 units in rentals. Despite two consecutive quarters of positive absorption, the year-to-date (YTD) figure remains negative, due to the net move-outs recorded in the first quarter.

 

  • Four of the five Tulsa submarkets reported positive net absorption for the quarter. Leading the pack was the South Tulsa/Broken Arrow submarket, where renters absorbed 60 units.

Completion Trends

  • In Q3 2023, Tulsa’s apartment inventory expanded by a modest 60 units, all of which were added to the Central Tulsa submarket.

 

  • Over the past four quarters, the addition of new units has been restrained, totaling just 198. This accounts for approximately a 0.3% expansion in local inventory. Notably, the West Tulsa submarket realized the majority of this new supply, making up 70% of the total new units added to the market.

Demand Outlook

  • Fluctuating demand is anticipated across Tulsa’s apartment market in the upcoming four quarters.

 

  • The Central Tulsa and East Tulsa submarkets are projected to experience robust demand in the next year, whereas the remaining submarkets are expected to see more subdued levels of absorption.

New Supply Outlook

  • Within the upcoming four quarters, the Tulsa apartment market is set to experience the most significant unit addition since 2019.

 

  • Nonetheless, the planned delivery of 1,097 units represents just 1.5% of Tulsa’s existing apartment inventory. Despite the uptick in available units, it is anticipated that property owners and operators will manage occupancy levels efficiently, without encountering major challenges.

Occupancy & Rent Trends

RENT VS OWN
MONTHLY PAYMENT

$1,763

Average Monthly Mortgage Payment

$975

Average Monthly Rent

Occupancy trends

In the third quarter of 2023, average occupancy across the Tulsa metro declined by 1.1 percentage points year-over-year, lowering the average occupancy rate to 94.7%. However, on a quarterly basis, the market noted a slight uptick of 10 basis points in average occupancy, which is a positive development for Tulsa property owners and operators. Among Tulsa’s multifamily asset classes, Class A units saw a 20-basis point annual increase in occupancy, reaching 95.1%. Conversely, both Class B and Class C properties experienced slight dips, with occupancy rates settling at 95.4% and 93.0%, respectively. At the submarket level, North Tulsa led in occupancy performance, posting a rate of 96.4%, while Central Tulsa lagged behind at 93.6%.

RENTAL TRENDS

Contrary to the prevailing trend of waning annual rent growth, Tulsa reported a robust 3.1% increase in the third quarter. This marked an improvement from the 2.9% recorded in the previous quarter, pushing the average monthly rent to $975 across the Tulsa metro area. In terms of asset classes, Class A units led with a substantial 4.1% increase, while both Class B and Class C assets posted gains of 2.9%. At the submarket level, North Tulsa outperformed all other Tulsa submarkets with a striking 6.3% annual growth in rents. Beyond North Tulsa, rent growth in the remaining submarkets showed minimal variation, ranging between 3.2% and 4.5% in annual increases.

Submarket Rent & Occupancy

SubmarketAverage OccupancyAnnual Occupancy ChangeAverage Monthly RentAnnual Rent Change
Central Tulsa93.6%-0.8%$9004.1%
East Tulsa94.6%-1.9%$8234.5%
South Tulsa/Broken Arrow95.2%-0.6%$1,0701.7%
West Tulsa94.9%-0.9%$1,0823.4%
North Tulsa96.4%-2.0%$1,0726.3%
Tulsa, OK94.7%-1.1%$9753.2%

Units by Submarket Delivering in 2023

1,097

Units Under Construction

1,097

Units UC Delivering In the Next 4 Quarters

Number of Units Under Construction

Central Tulsa - 593
0%
East Tulsa - 308
0%
South Tulsa/Broken Arrow - 0
0%
West Tulsa - 196
0%
North Tulsa - 0
0%

Number of Units Delivering Next 4Q

Central Tulsa - 593
0%
East Tulsa - 308
0%
South Tulsa/Broken Arrow - 0
0%
West Tulsa - 196
0%
North Tulsa - 0
0%

Sales Activity

Transaction activity in Tulsa’s apartment market has been more subdued in 2023. Over the last three quarters, a total of four conventional multifamily properties were sold, resulting in a trade volume of $35.4 million, according to data from Real Capital Analytics. This marks a dramatic 93% year-over-year decrease. The rolling 12-month average price per unit (PPU) stood at $108,500 in the third quarter, indicating a modest 7% decline compared to the previous year’s average PPU. Despite the reduced transaction activity, Tulsa remains an attractive market for investors. Its relative affordability coupled with a stable economic backdrop positions it as a compelling investment opportunity.

*Most Active Buyers and Sellers are based on the sale volume of apartment units.
  1. Vesta Capital
  2. Venterra Properties
  3. Weidner Apt Homes
  4. Kushner Companies
  5. Juniper Investment Group
  1. Case & Associates
  2. Blackridge Companies
  3. Wolff Company
  4. Bomasada Group
  5. Black Gold Group

TRANSACTION VOLUME


Annual Transaction Volume


Y-O-Y Change


Annual Individual
Transaction Count


Price Per Unit


Annual Price Change

* Trailing 4Q average PPU

* Preliminary Data from RCA – Individual transaction $2.5M +

Economy

In August 2023, the Tulsa area achieved a remarkable net gain of 10,100 jobs compared to August 2022, marking a 2.2% increase in employment. As a result, the unemployment rate in Tulsa decreased to 3.3%, which is commendably below the national average of 3.8%. Among the sectors, the Leisure and Hospitality industry stood out with a significant addition of 4,200 jobs, reflecting a growth of 9.1%. Similarly, the Construction sector showed a robust expansion of 9.6%, contributing 2,400 new jobs. Meanwhile, the Education and Health Services sector added 900 positions, though its growth rate was a more modest 1.2%.

10.1k

August Annual Jobs Created

2.2%

August 2023 Employment growth

3.3%

August 2023 Unemployment rate
3.8% us August rate

Top 5 Employment Sector Annual Change

Leisure & hospitality

Leisure & hospitality

Change from August 2022 to August 2023:
4,200

Percent Change:

9.1%

manufacturing

manufacturing

Change from August 2022 to August 2023:
2,600

Percent Change:
5.5%

Construction

Construction

Change from August 2022 to August 2023:
2,400

Percent Change:
9.6%

Government

Government

Change from August 2022 to August 2023:
1,100

Percent Change:
2.0%

Education & Health Services

Education & Health Services

Change from August 2022 to August 2023:
900

Percent Change:
1.2%

Hover over icons to view data
Tap icons to view data
SectorChange from August 2022 to August 2023 Percent Change
Leisure and hospitality4,200 9.1%
Manufacturing2,600 5.5%
Construction2,400 9.6%
Government1,100 2.0%
Education and health services900 1.2%
Financial activities400 1.7%
Other services300 1.5%
Mining and logging100 2.7%
Information(100)-1.9%
Professional and business services(700)-1.1%
Trade, transportation, and utilities(1,100)-1.3%

Cost of Living Comparison

With a Cost of Living Index at 87.8, Tulsa offers an attractive and relatively affordable lifestyle. Housing is notably affordable, with an index of 72, and a median home sales price of $224,500. This translates to an average monthly mortgage payment of $1,763, which is noticeably higher than the average rent of $975. Utilities are slightly above the national average at 101.2, while transportation costs, measured mainly by gas prices, come in at 86.9. When compared to its neighboring city, Oklahoma City, living in Tulsa is slightly more expensive in terms of groceries and housing by 1.85% and 1.0%, respectively. However, residents can expect to save on utilities, transportation, and healthcare, which are 1.64%, 10.16%, and 12.17% less expensive, respectively.

Oklahoma City, OK vs. Tulsa, OK
Cost of Living Comparison
Groceries:

1.8% More
Housing:

1.0% More
Utilities:

1.6% Less
Transportation:

10.1% Less
Health:

12.1% Less
Previous slide
Next slide
Cost of Living Index

87.8

Index Score

Average Mortgage

$1,763

vs Average Rent: $975

Housing

72

Index Score

Utilities

101.2

Index Score

Gas

86.9

Index Score

Median Home Sales Price

$224,500

The “Cost of Living” index score provides a comparative assessment of the relative expense involved in maintaining a standard of living in a specific area, benchmarked against a national index score of 100.

Market Outlook

Despite a national slowdown, the Tulsa market continues to attract strong investor interest. Presently, 1,097 housing units are in the pipeline, all set to be completed in the ensuing four quarters. Out of Tulsa’s five submarkets, Central Tulsa takes the lead, forecasting the addition of 593 units. While there could be interim effects on rent growth and occupancy metrics due to this influx, these are perceived as transient hiccups rather than long-term deterrents. Over time, the market is projected to recalibrate and maintain its equilibrium. Factors like a robust economy, measured construction growth, and encouraging employment trajectories underscore Tulsa’s favorable long-term prognosis. These elements not only promise to uphold demand but also strengthen Tulsa’s shield against potential future impediments.

Sources: RealPage; BLS; MSCI; The Council for Community And Economic Research (C2ER)

To Gain Further Insights Into The TULSA Market Please Reach Out To Our local Team

Image of Colton

Colton Howell

Senior Director

Image of Richard

Richard Redding

Senior Director

Have a question?
Send us a message!