Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Tulsa real estate spreadsheet template.
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Expecting a decrease in Tulsa's prices in 2025? Think again.
Several factors are set to push costs higher, from growing demand to limited resources.
Let's explore why Tulsa's prices are on the rise and what it means for you.
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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1) In Tulsa, there are only about "0.46 homes" for each person, which is quite limited
Signal strength: strong
The fact that there is around 0.46 home per inhabitant in Tulsa indicates a relatively low housing availability. This low ratio suggests that housing demand is likely to exceed supply as the population grows or remains stable. When demand outpaces supply, it often leads to increased competition for available homes, which can drive up prices.
One specific factor that locals know is that Tulsa has been experiencing a revitalization in its downtown area. This revitalization attracts more people to live and work in the city, further increasing the demand for housing in desirable areas. As more people move to these areas, the limited number of homes becomes even more pronounced.
Investors should consider that the current housing availability is not sufficient to meet the growing interest in Tulsa. If the number of homes per inhabitant were to increase significantly, say to 0.6 or higher, it might indicate a shift towards a more balanced market.
Source: USCensus
2) Tulsa home values have risen by 0.5% since last year and could keep increasing
Signal strength: strong
The fact that home values in Tulsa have already changed by 0.5% since last year is a key 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 an increase in prices.
Currently, the median home price in Tulsa is around $202,495, which is relatively affordable compared to other markets. Additionally, the median sales price per square foot is around $137, indicating that buyers are willing to pay more per unit of space.
These statistics, combined with the recent price change, support the assumption that housing prices are likely to continue rising in 2025. For potential investors, this could mean a good opportunity to enter the market before prices climb even higher.
However, if the home value change were to drop below 0%, it might signal a different trend, suggesting that prices could stabilize or even decrease.
Source: Redfin
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3) Three major websites confidently predict that home prices in Tulsa will rise in 2025
Signal strength: strong
There are three major websites forecasting a positive growth for home prices in Tulsa in 2025, which is a promising signal for potential investors.
Among these forecasts, Realtor is the most optimistic with a prediction of a 6.50% increase in home prices, followed by Redfin at 4%, and Zillow at 1.50%. This range of predictions shows a significant gap, indicating varying levels of confidence in the market's growth potential.
While these forecasts are encouraging, it's important to remember that predictions should be taken with caution as they are based on current trends and assumptions. We will also rely on strong, reliable, and actual data to make a more informed and professional judgment about the market's future.
If these forecasts were to predict a negative growth or a decline in home prices, it would suggest a different outlook for the Tulsa housing market.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
4) Tulsa's "Livability" score of 75 indicates a good quality of life
Signal strength: moderate
The fact that Tulsa has a livability score of 75 is a positive indicator for potential real estate investors.
This score suggests that Tulsa offers a high quality of life, which is attractive to new residents. One specific characteristic is the vibrant arts and culture scene, including the renowned Philbrook Museum of Art. Additionally, Tulsa's affordable cost of living compared to other U.S. cities makes it appealing for families and young professionals.
Moreover, the city boasts a strong sense of community, with numerous local events and festivals that foster a welcoming environment. These factors contribute to the assumption that housing demand will increase as more people choose to move to Tulsa.
If the livability score were to drop below 65, it might indicate a decline in these attractive qualities, potentially affecting housing prices negatively.
Source: AreaVibes
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5) Tulsa's median home price is significantly lower, at 53% less than the national average
Signal strength: minimal
The fact that Tulsa still has a median home price 53% below the national average suggests that there is significant room for growth in the housing market. When a market is priced significantly lower than the national average, it often attracts investors looking for affordable opportunities with potential for appreciation.
In Tulsa, the most expensive properties are likely to be luxury homes in areas like Midtown, where historic charm and proximity to amenities drive up prices. On the other hand, the cheapest properties might be small, older homes in North Tulsa, where economic development has been slower.
As demand increases and more people recognize the value in Tulsa's market, prices are likely to rise, especially in areas with desirable features. Investors should consider that the current price gap with the national average could narrow as the market heats up.
If Tulsa's median home price were to rise to only 20% below the national average, it might indicate that the market has reached a more stable equilibrium, reducing the potential for rapid price increases.
Source: Zillow
6) A local in Tulsa could afford a house in about 3.6 years, which is reasonable
Signal strength: minimal
In Tulsa, it currently takes around 3.6 years for a local to afford a house, which is considered reasonable. This is based on the median household income of approximately $56,821 and the median home price of about $202,495.
When the time it takes to buy a house is relatively short, it suggests that homes are more affordable compared to other markets. This affordability can attract more buyers, potentially driving up demand and, consequently, increasing housing prices in the future.
As demand rises, it is likely that housing prices will go up in 2025 in Tulsa. Investors might find this an opportune time to consider entering the market.
If the time to buy a house were to increase significantly, say to over 5 years, it might indicate that housing prices are stabilizing or even decreasing.
Source: USCensus
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7) In Tulsa, about 22% of homes sell for more than their listing price
Signal strength: minimal
In Tulsa, around 22% 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 market behavior typically suggests that housing prices are likely to rise because demand is outpacing supply. As more buyers compete for the same properties, sellers gain leverage to increase their asking prices.
Therefore, if you are considering investing in real estate in Tulsa, this trend of over-listing price sales is a positive signal for potential appreciation in property values. However, if the percentage of sales closing above the listing price were to drop significantly, say below 10% of total sales, it might indicate a cooling market.
Source: Zillow
8) In Tulsa, home prices have steadily increased by an average of 6.2% each year over the past decade
Signal strength: minimal
The fact that home prices in Tulsa have appreciated at an average rate of 6.2% over the last decade is a noteworthy signal for potential investors.
This consistent growth in home values suggests a history of demand and price increases, which can indicate favorable conditions for future price appreciation. While it's important to remember that past performance doesn't guarantee future results, historical trends can still provide valuable insights.
Investors often look at long-term appreciation rates as a way to gauge the health and potential of a real estate market. In this case, the 6.2% average increase over ten years is a positive indicator.
However, if the appreciation rate were to drop significantly, say below 2% over a similar period, it might suggest a different trend.
Source: NeighborhoodScout
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So, are home prices in Tulsa going to rise in 2025? Absolutely!
Home prices in Tulsa are set to rise in 2025, and here's why.
First, the housing availability is limited, with only 0.46 homes per person, indicating that demand is likely to exceed supply. This imbalance often leads to increased competition and higher prices. Additionally, Tulsa's downtown revitalization is attracting more residents, further boosting demand in desirable areas.
Second, home values have already risen by 0.5% since last year, with a median home price of $202,495. This upward trend suggests that prices will continue to climb. Major forecasts from Realtor, Redfin, and Zillow predict increases of 6.50%, 4%, and 1.50% respectively, reinforcing the expectation of rising prices.
Moreover, Tulsa's livability score of 75 and its affordable cost of living make it an attractive place to live, likely increasing housing demand. With a median home price 53% below the national average, there's significant room for growth. The fact that 22% of homes sell above their listing price further indicates strong buyer competition.
Finally, the historical average annual price increase of 6.2% over the past decade highlights a consistent upward trend. All these factors combined make it clear that Tulsa's housing market is poised for price increases in 2025.