Housing Market in OKC

[Pete]

I bet that's one of the biggest perks in moving from SoCal to OKC.

Haha... Absolutely!

My house here is bigger, nicer and on a much bigger lot and it cost me about 1/4 what I paid out there, and I lived in what was considered a semi-affordable area. However, no mountain or beach view here.

It's not only the mortgage but having a ton of money tied up through down payment. I was able to free that up and drastically reduce my monthly costs.

I posted elsewhere that I was worried about utilities here and how that might offset some of the savings but they have worked out to be pretty equal, as electric is much higher here due to the need to run a/c but water is much cheaper, so everything should pretty much even out over the course of a year.

[oklip955]

I've got my acreage home on the market, no calls in over 2 weeks. So yah the market is slowing way down on properties over $300K

[cxl144]

A realtor friend posted that the central OK sales price average is $155k. Seems like what is moving the fastest out by me in the SWOKC/Yukon/Mustang area is anything below $250k. The neighborhoods like Morgan Creek with homes predominately in the $300k+ range construction has come to a virtual standstill.

[Plutonic Panda]

For anyone who loves sprawl, besides me , there is a 1,500 home development in the works on NW between Kilpatrick area and Piedmont.

[Plutonic Panda]

Aaannnnddd the unaffordable housing problem is starting to take root in OKC. This is a good problem to have I guess depending on how you look at it.

Some really surprising figures in here such as how OKC will have median rents in 15 years that will rival where Los Angeles and Oakland are today.

http://m.newsok.com/article/5549508

[Canoe]

Aaannnnddd the unaffordable housing problem is starting to take root in OKC. This is a good problem to have I guess depending on how you look at it.

Some really surprising figures in here such as how OKC will have median rents in 15 years that will rival where Los Angeles and Oakland are today.

http://m.newsok.com/article/5549508

Panda,. Why is this a good thing again?

[Plutonic Panda]

Panda,. Why is this a good thing again?

It's not that it is a good thing, but it points to the direction the city is going. It's a consequence of a good problem which is growth. I'd rather have OKC see higher home prices and be growing than not. I don't know how you can have one without the other.

[Canoe]

It's not that it is a good thing, but it points to the direction the city is going. It's a consequence of a good problem which is growth. I'd rather have OKC see higher home prices and be growing than not. I don't know how you can have one without the other.

Could we have supply equal demand and prices/rents match inflation? It says in the article that most of the new stock is designed for the luxury market.

Also I have obsevered alot of out of state money flowing in to purchase up SFHs and raising the price. I have often wondered what the pur has/rental market would be like if out of state landlords didn't own so much real estate in Oklahoma City.

[Plutonic Panda]

That would be ideal but what cities has that happened in? Denver, Austin, and Portland all seem to be indicators as to where OKC is going. Look at every major city. I agree with you, but do you think that will happen?

[ChrisHayes]

That's actually sort of surprising considering all of the housing and apartment developments being built around the city and the rate we're growing (roughly 100,000 per decade). But, yeah, it's a sign of growth.

[Ross MacLochness]

That would be ideal but what cities has that happened in? Denver, Austin, and Portland all seem to be indicators as to where OKC is going. Look at every major city. I agree with you, but do you think that will happen?

They don't have to be indicators. Those cites can serve as warnings and examples to be learned from. Since our growth is young, we can be proactive to prevent such affordable housing woes. I don't know how this would work practically or financially but we need to be building housing at a rapid clip and densely, so that as the city grows we can accommodate all citizens and not leave our poorest (and if we go the way of the cites you mentioned, the middle class) out to dry. The reason housing in those cities - especially urban housing - is so expensive it that they just don't have enough of it and are scrambling to build. We should look ahead and start developing strategies to build more housing stock so that we can avoid the crisis that these other cities are dealing with.

[Anonymous.]

OKC's Downtown/Midtown does have ample dense residential. There is some solid vacancy in both. I think in the next 2-3 years we will see the "premium" for these downtown properties (see Maywood, Metropolitan, Steelyard, Lift, Edge) begin to lose steam. Instead it will morph more into a competitive market that actually requires developers and lease managements to "sell" their property. Whereas before and currently - just offering anything downtown or in midtown with amenities was easy money.

[Canoe]

They don't have to be indicators. Those cites can serve as warnings and examples to be learned from. Since our growth is young, we can be proactive to prevent such affordable housing woes. I don't know how this would work practically or financially but we need to be building housing at a rapid clip and densely, so that as the city grows we can accommodate all citizens and not leave our poorest (and if we go the way of the cites you mentioned, the middle class) out to dry. The reason housing in those cities - especially urban housing - is so expensive it that they just don't have enough of it and are scrambling to build. We should look ahead and start developing strategies to build more housing stock so that we can avoid the crisis that these other cities are dealing with.

Are there any high density affordable (>200k) condos in the core of those cities?

[Ross MacLochness]

Are there any high density affordable (>200k) condos in the core of those cities?

idk, but I do know that those cites are struggling to keep up with the demand no matter the quality. Even very low end housing in the burbs are ridiculously expensive. Pair the cost of living with the high price of commuting a long distance and you have a situation where many many folks can barely afford to live.

In OKC we have ample and cheap living if you make a decent living (like $40000 + a year). But we are already behind in housing for folks who make less than that. OKC is one of the most sprawling, low density major metros in the nation so transportation cost is also a huge burden for the poor here. We are going to have a real challenge ahead of us if we don't act to solve this problem early on and learn from the portlands, denvers, and austins.

If we focus on increasing the quantity of units near the core and enable alternate transportation modes, we can subvert the issue to an extent. I'm thinking about this from a purely ideological pov. I don't know how these ideas would be implemented realistically. That being said, this is a huge issue that will creep up on us if we aren't careful so it should be studied.

[Pete]

Fortunately, there are still hundreds of infill opportunities in and near the core and land and building costs are still pretty reasonable.

I live less than 5 miles from the CBD in a house that was completely remodeled inside and out (open floorplan, everything new) and still paid only a bit over $100 / SF, which is amazing considering most other housing markets. It's also the reason I moved outside of downtown because I wasn't going to pay 3 or 4 times that, especially for little or no yard. As it is, I can be anywhere in the core very quickly and haven't missed living downtown nearly as much as I had anticipated.

There is also an almost unlimited amount of older housing stock -- both homes and multi-family -- that is still affordable and that can be easily remodeled / upgraded. Especially west of Classen, all the way up to 50th. Tons and tons of good houses in decent neighborhoods which are all improving.

[krisb]

My family moved to Guthrie back in December after a months long search for a larger home with historic character that didn't cost $400K or more. We couldn't find anything in OKC proper and the suburbs aren't my thing either. While using the realtor.com app I stumbled upon homes for sale in Guthrie and was amazed at what you can get for your money. While I have a 35-40 minute commute (mostly highway), we were able to buy a newly remodeled/restored 2600 square foot 1920 Victorian home on a huge corner lot for less than $200K one mile from downtown Guthrie.

The historic downtown is a lesson in good urban design and architecture with four contiguous blocks of mid-rise mixed use charm. There is not a single neighborhood or district in OKC with as much preserved urban form. There are a growing number of coffee shops and third places in Guthrie along with concerts and festivals year round. There are a bunch of young couples that have moved up there and are flipping houses Fixer Upper style. https://www.instagram.com/honeycanhammer/

If you are looking for something affordable and walkable with an authentic Oklahoma vibe, allow me to shamelessly plug Guthrie as an extension of the OKC metro area.

[Plutonic Panda]

They don't have to be indicators. Those cites can serve as warnings and examples to be learned from. Since our growth is young, we can be proactive to prevent such affordable housing woes. I don't know how this would work practically or financially but we need to be building housing at a rapid clip and densely, so that as the city grows we can accommodate all citizens and not leave our poorest (and if we go the way of the cites you mentioned, the middle class) out to dry. The reason housing in those cities - especially urban housing - is so expensive it that they just don't have enough of it and are scrambling to build. We should look ahead and start developing strategies to build more housing stock so that we can avoid the crisis that these other cities are dealing with.

I agree with you, but wouldn't you say this is more wishful thinking that being realistic? The only reason I say that is are there any cities out there that have grown considerably and kept housing costs low?

[Ross MacLochness]

I agree with you, but wouldn't you say this is more wishful thinking that being realistic? The only reason I say that is are there any cities out there that have grown considerably and kept housing costs low?

Totally, that's why I said that I was being idealistic and didn't know how we could put the ideas into practice.

Hopefully, by starting the conversation while we have some breathing room, we can work out how to solve some of these problems. In some ways it's a blessing for OKC that we had a period of stagnation so that we can use the other cites in america as a case studies. Just because bigger cites haven't been able to overcome this challenge doesn't mean we can't.

[Pete]

I agree with you, but wouldn't you say this is more wishful thinking that being realistic? The only reason I say that is are there any cities out there that have grown considerably and kept housing costs low?

Dallas and Houston have pretty reasonable housing prices, especially for their populations.

Like it or not, those are probably the closest corollaries to OKC.

[BlackmoreRulz]

Aren't housing starts way down the last couple of years?

[Canoe]

Aren't housing starts way down the last couple of years?

I think part of the problem is everyone wants there area to be the next Nichols Hills and not the next .... Well I could put some areas there but that would be rude. But something like del city I suppose. It

[Pete]

Aren't housing starts way down the last couple of years?

They had been but the numbers are up quite a bit for the first part of 2017.

[ChrisHayes]

It seems to be picking back up as there are a number of new housing developments going up. Especially in the southwest part of the city around Yukon and Mustang; but in OKC itself.

[Montreal]

I've maintained a spreadsheet of Mesta Park home sales, and remodeled/updated homes are selling about $170psf average. There naturally is a decent variance, depending on where you are in the neighborhood. Houses closer to the park and to the southeast are pushing $200psf.

[Montreal]

Also, the best thing for affordability is to limit the restrictions on density, especially in the close-in neighborhoods surrounding the urban core. If I had my way, every single one of those neighborhoods (even MP & HH) would be zoned to allow at least 3-4 units per lot. There are a bunch of small, old, houses frankly not worth saving that are being remodeled at juiced up valuations because supply is being artificially restricted. This is especially the case in Classen-Ten-Penn near the Plaza and in between Uptown and the Paseo.

If denser infill was allowed to be developed across large swaths of the city's traditional neighborhoods, it would dramatically help overall affordability and reduce displacement from gentrification. At the very least, ADUs/garage apartments should be allowed by right city-wide.

I say all this as a Mesta Park resident who lives in a house that honestly should have been torn down years ago and replaced by a small walkup apartment building.