Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Oklahoma City real estate spreadsheet template.
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Expecting a decrease in Oklahoma City prices in 2025? Think again.
Even with changing conditions, the OKC market is strong, with high demand and not enough supply pushing prices up.
Let's explore why prices in this city are set to rise in 2025.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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- Yes, investing in real estate is a solid option in 2025 in Oklahoma City
1) Oklahoma City boasts an impressive livability score of 81, highlighting its excellent quality of life
Signal strength: strong
The fact that Oklahoma City has a livability score of 81 is a strong indicator that housing prices might rise in 2025.
This score is considered excellent because the city offers a low cost of living, which attracts more residents and potential homebuyers. Additionally, Oklahoma City is known for its vibrant arts and culture scene, including museums and theaters, which enhances its appeal.
Moreover, the city boasts a strong job market with opportunities in various sectors, making it an attractive place for professionals. These factors combined make Oklahoma City a desirable place to live, which can drive up demand for housing.
If the livability score were to drop below 70, indicating a decline in these positive attributes, it might suggest a different trend for housing prices.
Source: AreaVibes
2) In Oklahoma City, there are about 0.44 homes for each person, which is quite limited
Signal strength: strong
The fact that there is around 0.44 home per inhabitant in Oklahoma City suggests a limited housing supply.
When the number of homes is relatively low compared to the population, it often leads to increased demand for housing. This demand can drive up prices, especially if the supply does not increase to meet it.
In Oklahoma City, a factor that locals know is the steady influx of new residents due to its growing job market. This influx further tightens the housing market, making it likely that housing prices will rise as demand continues to outpace supply.
If the number of homes per inhabitant were to increase to around 0.6 or higher, it might indicate a more balanced market, potentially stabilizing or even lowering prices.
Source: USCensus
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3) Home values in Oklahoma City have risen by 2.0% since last year, and this trend could persist
Signal strength: strong
The fact that home values in Oklahoma City have already changed by 2.0% since last year is a strong indicator that the housing market is on an upward trend. This change suggests that there is a growing demand for homes, which often leads to higher prices.
Currently, the median home price in Oklahoma City is around $199,271, which is relatively affordable compared to other cities. Additionally, the median sales price per square foot is around $156, indicating that buyers are willing to pay more for each square foot of property.
These figures suggest that the market is gaining momentum, and if this trend continues, housing prices are likely to increase in 2025. For potential investors, this could mean a good opportunity to invest now before prices rise further.
However, if the home value change were to drop below 1.0%, it might signal a slowdown, contradicting the current upward trend.
Source: Redfin
4) Three major websites confidently predict that home prices in Oklahoma City will rise in 2025
Signal strength: strong
There are currently three major websites forecasting a positive growth for home prices in Oklahoma City in 2025, which is a promising signal for potential investors.
Among these forecasts, Realtor is the most optimistic with a prediction of a 6.60% increase in home prices, followed by Redfin at 4% growth, and finally, Zillow with a more modest 0.60% increase.
The significant gap between these forecasts suggests that while there is a general consensus on growth, the extent of it is uncertain. It's important to remember that forecasts should be taken with caution as they are based on predictive models and assumptions.
We will also rely on strong, reliable, and actual data to make a professional judgment. If all forecasts were predicting a negative growth or decline, it would signal a different market outlook.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
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5) In just about 3 years, a local can afford a house in Oklahoma City, which is quite reasonable
Signal strength: moderate
In Oklahoma City, it currently takes around 3.0 years for a local to save enough to buy a house. This is based on the median household income of approximately $67,015 and the median home price of about $199,271.
When it takes a relatively short time, like 3.0 years, to afford a home, it suggests that homes are currently affordable. This affordability can attract more buyers, increasing demand and potentially driving up prices.
As demand increases, the market may see rising housing prices in 2025 due to this increased interest. Investors might find this an opportune time to enter the market.
If it took significantly longer, say over 5 years for a local to afford a home, it might indicate that prices are too high, potentially slowing down demand.
Source: USCensus
6) Oklahoma City's is just 9.5%, showing it's a bustling and competitive market
Signal strength: moderate
The vacancy rate of 9.5% in Oklahoma City is a clear indicator of a highly occupied and competitive housing market.
When vacancy rates are low, it often means that there is a strong demand for housing, which can lead to an increase in housing prices. This is because more people are looking to rent or buy than there are available properties, driving up prices.
In such markets, properties that are easily rented are typically well-maintained and located in desirable areas, such as modern apartments in the downtown area of Oklahoma City. Investors should consider these types of properties as they tend to attract tenants quickly and maintain high occupancy rates.
If the vacancy rate were to rise significantly, say to above 15%, it could indicate an oversupply of housing, which might lead to a decrease in housing prices.
Sources: NeighborhoodScout, DataUSA, USCensus
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7) Oklahoma City's median home price is significantly lower, at 54% below the national average
Signal strength: minimal
The fact that Oklahoma City still has a median home price 54% below the national average suggests that there is significant room for growth in the housing market. This gap indicates that the city is an attractive option for potential homebuyers and investors, which could lead to increased demand and, consequently, rising home prices in 2025.
In Oklahoma City, the most expensive properties are likely to be luxury homes in affluent neighborhoods such as Nichols Hills. These areas are known for their high-end amenities and desirable locations, which drive up property values.
On the other hand, the cheapest properties are probably small, older homes in less developed areas like the south side of the city. These properties may require renovations and are situated in neighborhoods with fewer amenities, making them more affordable.
If the median home price in Oklahoma City were to rise significantly above the national average, it might suggest that the market has reached a saturation point, and prices could stabilize or even decrease.
Source: Zillow
8) In Oklahoma City, about 23% of homes sell for more than their listing price
Signal strength: minimal
In Oklahoma City, around 23% of sales close at a price higher than the listing price, which is a significant indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is strong and they are eager to secure a property.
This kind of competitive environment typically leads to an upward pressure on housing prices as more buyers are vying for the same properties. As demand continues to outpace supply, sellers can expect to receive multiple offers, often above the listing price, which further drives prices up.
For someone considering investing in real estate, this trend suggests that property values are likely to appreciate in the near future, making it a potentially lucrative market. However, if the percentage of sales closing above the listing price were to drop significantly, say below 10%, it might indicate a cooling market where prices could stabilize or even decrease.
Source: Zillow
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9) In the past decade, home prices in Oklahoma City have consistently risen by an average of 6.0% each year
Signal strength: minimal
The fact that home prices in Oklahoma City have appreciated at an average rate of 6.0% over the last decade is a noteworthy signal for potential investors. This consistent growth suggests a history of demand and price growth, which can create favorable conditions for future increases.
When we see a positive 10-year average home value appreciation, it indicates that the market has been strong and resilient. This historical trend can be a good indicator of potential future performance, even though past performance doesn’t guarantee future results.
Investors often look at such trends to gauge the health and potential of a real estate market. However, it's crucial to remember that if the appreciation rate were to drop significantly, say below 2% over a similar period, it might suggest a weakening market.
Source: NeighborhoodScout
So, are prices going to climb in Oklahoma City in 2025? Yes, they are!
Oklahoma City's housing market is poised for a price increase in 2025.
Several factors contribute to this outlook. The city boasts a livability score of 81, indicating a high quality of life that attracts new residents. With a strong job market and a vibrant cultural scene, demand for housing is likely to rise. Additionally, the housing supply is limited, with only 0.44 homes per person, which further drives demand.
Home values have already increased by 2.0% over the past year, and major forecasts predict further growth, with Realtor expecting a 6.60% increase. The city's median home price is 54% below the national average, suggesting room for growth. Moreover, 23% of homes sell above their listing price, indicating strong buyer competition.