In the past, Tulsa has enjoyed a reputation of having a very low cost of living. This is true especially if you compare rent prices to both the east and west coasts of the country. But due to record inflation and supply chain interruptions caused by the pandemic, prices are rising to levels never before seen in places like Tulsa.
People still want to live in beautiful Tulsa, but there is a shortage of livable housing on the market. In appealing areas like downtown, apartment buildings are filled within weeks of completed construction and often have months-long waiting lists to get in. For those who want to live in south Tulsa, the same problem exists. Developers are not finding it financially viable to build housing in Tulsa for the amount that people would be willing to pay.
This problem is not unique to Tulsa. Housing costs are skyrocketing all over the country, and the need for more housing is more demanding than ever. The pandemic changed the outlooks of many as they adjusted their lives to be more prepared for more unexpected events in the future and leave big cities. But as the costs for supplies like lumber remain high, the cost of new developments also remains high.
Eviction rates reveal complex issues
Another issue is evictions. Again, compared to other parts of the country Tulsa’s eviction rates seem low. But for Tulsa natives, this is uncharted territory. Before the pandemic, monthly evictions averaged around 12,000. That was due to economic difficulties faced by both tenants and landowners. Those who lost jobs or sources of income could not pay even what was considered a low rent cost. Landowners could not afford to let people stay in their properties for free.
It is noteworthy that eviction rates remained high throughout the pandemic despite more government assistance and programs designed to help people stay afloat financially. As the nation transitioned to post-Covid normalcy, the problem changed slightly. Eviction rates are lower than before but still hovering around 800 per month. However, eviction rates alone don’t tell the full story. People living in Tulsa are still struggling to pay their rent. Fortunately, the local government in Tulsa has found a way to keep people in their apartments for the time being. So, evictions are going down, but high costs mean that more people are finding it difficult to make ends meet.
Cities Like Tulsa Have Changed Forever
With rent going up with no apparent end in sight, where do we go from here? Experts and conventional wisdom tell us that supply will eventually catch up to demand and start to balance things out. But much of the issue falls on America’s economy in general as well as the global economy.
Downtown Tulsa will continue to transform in the future. Like many cities across America, there is less foot traffic. Office buildings and other commercial buildings sit empty as remote work has become more common. If they continue to be empty, there may be an incentive to turn those spaces into apartment and loft spaces. Developers want to make money and residential property is quickly becoming more valuable than office space.
Available rental homes and apartments are hard to find
Eviction rates are high, but vacancy rates are extremely low. That tells us that in Tulsa there are no homes available. And when they do go on the market, they don’t stay for long. Even though prices are increasing fast, people are also fast to pay higher prices. This phenomenon gives landlords and developers no reason to lower prices. And just because people are snatching up apartments and paying higher rent doesn’t mean they can easily afford it. People in Tulsa struggle to pay higher rent but do so out of necessity.
The shortage of affordable rent persists all over Tulsa. Here is what you can expect to pay for rent in these Tulsa neighborhoods:
- Brady Heights– $1,600+
- Barton– $1,400+
- Forest Orchard– $1,400+
- Greenwood Historical District– $1,400+
- Cherry Street– $1,300+
Those prices are on average 12% higher than they were a year ago. While this rate may not affect lower-income areas, higher-end apartments and rental homes can be as much as 19% higher than a year ago. This greatly affects middle-class renters.
Here is where Tulsa ranks with other Oklahoma cities’ average rent prices:
- Oklahoma City– $950
- Edmond– $$1,132
- Tulsa– $904
- Norman– $1,067
- Yukon– $1,015
What was once an affordable place to live and raise a family is being plagued by nationwide inflation. As time goes on, we will see how Tulsa handles the housing shortage problem and high rental rates. It will take time for the supply chains and market to recover from interruptions and drastic changes in demand. Tulsa is still a great place to live and much cheaper than other metro areas in America, but that may soon change.
