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1) Tulsa's "livability score" of 75 indicates a favorable quality of life
Signal strength: moderate
The livability score of 75 in Tulsa is considered good because it reflects a balance of factors that make the city appealing to residents.
One key characteristic is the affordable cost of living, which is significantly lower than the national average, making it attractive for both families and individuals. Additionally, Tulsa boasts a vibrant arts and culture scene, with numerous museums, theaters, and music venues that enhance the quality of life for its residents.
Another important factor is the strong sense of community found in Tulsa, where neighborhoods are known for their friendliness and supportiveness, contributing to a welcoming environment. These elements combined suggest that investing in property here could be a wise decision, as they indicate a stable and desirable place to live.
However, if the livability score were to drop below 60, it might signal potential issues that could affect the attractiveness of investing in real estate in Tulsa.
Source: AreaVibes
2) By 2025, Tulsa's real estate values are predicted to increase, driven by the "US-169 Widening" and "Vision Tulsa" projects
Signal strength: moderate
Investing in Tulsa's real estate market is becoming increasingly attractive due to several key infrastructure projects that are expected to boost property values.
The US-169 Widening Project is a significant development that aims to improve traffic flow and safety in the Tulsa metro area. By widening the highway between 66th and 86th Streets, this project is likely to make the surrounding areas more accessible and appealing to potential buyers, thereby increasing the value of nearby properties.
Additionally, the Vision Tulsa projects are a series of initiatives designed to enhance economic development and quality of life across the city. These projects include major improvements like the Arkansas River Corridor Infrastructure and the Cox Business Center and Arena District Master Plan. Such enhancements are expected to make Tulsa a more vibrant and desirable place to live, which can positively impact real estate values.
Furthermore, the Project Anthem Data Center Campus, although expected to be completed around 2027, is another development that could attract new businesses and residents to the area. This $800 million investment is likely to create jobs and stimulate economic growth, further boosting the attractiveness of Tulsa's real estate market.
Sources: Oklahoma Department of Transportation, Data Center Dynamics, City of Tulsa
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3) The Tulsa metro area is experiencing a population increase
Signal strength: moderate
The population growth in the Tulsa metro area is a key indicator of potential investment success in the real estate market.
As the population increases, the demand for housing typically rises. The Tulsa metro area has shown steady population growth over the years, with a 1.01% increase from 2023 to 2024, and similar growth rates in previous years. This trend suggests a growing need for residential properties, which can drive up property values and rental prices.
Future projections further support this outlook. By July 2034, the Tulsa market is expected to grow by 6.9%, reaching a population of 1,514,193. This anticipated growth indicates a continued demand for housing, making property investment in the area potentially lucrative.
Additionally, the Tulsa County has experienced a 13.83% growth in population since 2010, and is projected to continue growing. This consistent increase in population can lead to a strong real estate market, as more people moving into the area will need places to live, work, and shop.
Sources: Macrotrends, Synergos Technologies, Neilsberg, World Population Review, Oklahoma.gov
4) Airbnb's "cash-on-cash return" of 5.0% in Tulsa is fairly appealing
Signal strength: moderate
The cash-on-cash return on Airbnb in Tulsa is 5.0%, which is considered moderately attractive for investors looking at short-term rental markets.
This percentage indicates that the income generated from renting out a property on Airbnb can provide a reasonable return on the initial cash investment. In Tulsa, short-term tenants often include business travelers attending conferences and events, as well as tourists exploring the city's cultural attractions.
These visitors are drawn to Tulsa for its vibrant arts scene, historical sites, and popular events like the Tulsa State Fair. The steady influx of such visitors suggests that there is a consistent demand for short-term rentals, making it a potentially lucrative market for property investors.
If the cash-on-cash return were to drop below 3.0%, it might indicate a less favorable investment opportunity, as the returns would not justify the risks involved.
Source: Mashvisor
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5) The "cash-on-cash return" of 6.0% in Tulsa is fairly appealing
Signal strength: moderate
The cash-on-cash return of 6.0% in Tulsa indicates a moderate level of profitability for real estate investors.
This percentage suggests that the income generated from the property, relative to the cash invested, is reasonably attractive compared to other markets. In Tulsa, long-term tenants often include families and professionals who are drawn to the city's affordable cost of living and stable job market.
These tenants typically seek affordable housing options that offer good value for their money, making Tulsa a viable market for rental properties. Additionally, the presence of educational institutions and healthcare facilities attracts students and healthcare workers who prefer long-term rentals.
If the cash-on-cash return were to drop below 4.0%, it might indicate that the investment is less favorable compared to other opportunities.
Source: Mashvisor
6) 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 property value appreciation. This makes it an attractive market for investors looking to capitalize on potential growth in property values over time.
In Tulsa, the most expensive properties are likely to be luxury homes in upscale neighborhoods such as Midtown or Maple Ridge. These areas are known for their historic charm and proximity to amenities, which drive up property values.
On the other hand, the cheapest properties are often small single-family homes in less developed areas like North Tulsa. These areas may offer lower entry costs for investors looking to start small or diversify their portfolios.
If the median home price in Tulsa were to rise to close to the national average, it might indicate that the market is becoming less favorable for new investments.
Source: Zillow
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7) A local in Tulsa could afford a house in about 3.6 years, which is reasonable
Signal strength: minimal
Investing in real estate in Tulsa seems promising because it would take around 3.6 years for a local to buy a house there. This is a relatively short time frame, indicating that the housing market is accessible and potentially profitable.
The median household income in Tulsa is approximately $56,821, which is a decent earning for many families. With a median home price of about $202,495, homes are affordable compared to other markets, making it easier for locals to purchase property.
This affordability suggests that there is a steady demand for housing, which is a positive sign for investors. When people can buy homes without excessive financial strain, the market remains stable and attractive for potential buyers and investors alike.
If the time to buy a house were to increase significantly, say to over 5 years, it might indicate that the market is becoming less accessible and potentially less attractive for investment.
Source: USCensus
So, is it worth buying property in Tulsa? Absolutely!
Investing in Tulsa's real estate market is a smart move, thanks to its appealing livability score and affordable cost of living.
With a livability score of 75, Tulsa offers a vibrant arts scene and a strong sense of community, making it a desirable place to live. The city's median home price is 53% below the national average, providing significant room for property value appreciation.
Infrastructure projects like the US-169 Widening and Vision Tulsa are set to boost property values, while the population growth indicates a rising demand for housing. Additionally, a cash-on-cash return of 6.0% makes Tulsa's rental market attractive for investors.