average rent
average occupancy rate
ANNUAL sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: -48
QUARTERLY COMPLETIONS
YTD: 198
Average Monthly Mortgage Payment
Average Monthly Rent
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%.
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 | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Central Tulsa | 93.6% | -0.8% | $900 | 4.1% |
| East Tulsa | 94.6% | -1.9% | $823 | 4.5% |
| South Tulsa/Broken Arrow | 95.2% | -0.6% | $1,070 | 1.7% |
| West Tulsa | 94.9% | -0.9% | $1,082 | 3.4% |
| North Tulsa | 96.4% | -2.0% | $1,072 | 6.3% |
| Tulsa, OK | 94.7% | -1.1% | $975 | 3.2% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
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.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
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%.
August Annual Jobs Created
August 2023 Employment growth
August 2023 Unemployment rate
3.8% us August rate
| Sector | Change from August 2022 to August 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 4,200 | 9.1% |
| Manufacturing | 2,600 | 5.5% |
| Construction | 2,400 | 9.6% |
| Government | 1,100 | 2.0% |
| Education and health services | 900 | 1.2% |
| Financial activities | 400 | 1.7% |
| Other services | 300 | 1.5% |
| Mining and logging | 100 | 2.7% |
| Information | (100) | -1.9% |
| Professional and business services | (700) | -1.1% |
| Trade, transportation, and utilities | (1,100) | -1.3% |
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.
87.8
$1,763
72
101.2
86.9
$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.
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.
