Tulsa is one of the most desirable places to live in the state of Oklahoma. It is once known as the world’s oil capital. Nowadays, Tulsa has grown into a modern metropolitan area and has become a lucrative location for real estate investment.
In fact, Tulsa is one of the best markets to buy a property because of its favorable median home price, average days on market, and good appreciation rate.
Tulsa is situated along the Arkansas River between the Osage Hills and Ozark Mountains. The Tulsa metro area is home to over one million people. It boasts a thriving economy that is driven by the oil and energy industries. Other industries that contribute to Tulsa’s good economic conditions include finance, high-tech, manufacturing, and aerospace.
There are several reasons why investors should consider buying an investment property in Tulsa, including the following;
The current population of Tulsa City is over 413,000, while the Tulsa metro area has more than one million residents. Tulsa is the second largest city in the state of Oklahoma, and it has had a steady population growth over the years. In fact, the Tulsa metropolitan area has grown by 8.3% over the past decade.
A city with a growing population is ideal for investing in real estate. As more new residents are coming to live in Tulsa, the demand for housing will also increase. However, not all residents are ready to buy or can afford to purchase a home.
Those residents who don’t consider owning a home will need to rent a property instead. This means that rental property owners will find more investment opportunities in Tulsa.
Another reason why Tulsa has a thriving economy is that it has a successful job market. In 2021, Amazon opened its third fulfillment center in Tulsa. In addition to this, Canoo, an electric vehicle maker, opened 2,000 new jobs when they built a $400-million plant in the city.
This has attracted several new residents to migrate to Tulsa, creating more demand for housing and rentals.
High Appreciation Rate
The Tulsa real estate market is one of the hottest markets in the United States. One of the reasons why investors love to invest in Tulsa is because of its high appreciation rates. The median sales price in Tulsa is up by 16.84% year-over-year, which means that your investment property will definitely increase its value in just a few years.
What’s more, most listings in Tulsa are selling for the full asking price. Because the demand for housing is high, many homebuyers are priced out of the market.
This forced more residents to rent instead. This means that if you invest in Tulsa rental properties, you will most likely generate good returns from your investment because a high demand for rentals is expected.
Low Cost of Living
Tulsa is generally an affordable place to live in. It is one of the US cities that have the lowest costs of living. In fact, Tulsa’s cost of living is almost 17% below the national average.
A city with a low cost of living attracts more residents. This is also one of the reasons why it has a growing population, making it an ideal location for investing in real estate.
Compared to most other cities in the United States, Tulsa offers convenient and faster commutes to its residents. It only takes less than 20 minutes on average to travel, despite its large size.
Most tenants prefer to stay in a place where it’s easy for them to travel from place to place, and Tulsa offers this kind of travel convenience thanks to its programs that make roads accessible to all transportation modes.
Quality of Living
There’s a reason why Tulsa is one of the top destinations for retirees. It is a place that boasts beautiful scenic views, making it great for outdoor lovers. Being close to the Arkansas River, Tulsa is a great location for those who love to explore the great outdoors and try on a variety of water activities.
It is also home to a variety of recreational facilities and tourist attractions, including Lynn Lane Reservoir, Centennial Park, Oxley Nature Center, Woodward Park, Tulsa Garden Center, and Turkey Mountain Urban Wilderness Area.
With this, you may not only earn income from long-term rentals, but you can also consider investing in short-term rentals to cater to both local and international tourists.
Things to Consider When Buying an Investment Property in Tulsa
We have established that Tulsa is a great place for investing in rental properties. However, before you buy any rental property in Tulsa, you have to know that not all neighborhoods are optimal for rental property investments. To ensure that you’ll maximize your returns, it’s important to choose your location carefully.
Here are a few things that you need to consider when finding a neighborhood to invest in:
When choosing a neighborhood to invest in rentals, make sure that the location is safe and conducive for raising a family, especially if you want to target tenants with kids. A safe neighborhood is crucial to your occupancy rate, which can greatly affect your overall profitability.
Check the neighborhood’s crime rate first and visit the area to ensure that it is generally safe for your future tenants.
Some neighborhoods offer more amenities than others. Make sure to buy an investment property in a place where essential amenities such as schools, hospitals, banks, public transportation, important businesses, and recreational facilities are available.
A neighborhood that is close to supermarkets, shops, and restaurants is more desirable than an area that seems too isolated and away from businesses.
When buying an investment property, you have to check the rental comps within the area to get an overview of your possible competition.
By studying the rental comps, you’ll know how similar properties within the area are performing. This will also give you an idea of the available rental demands in the area and how profitable your investment could become.
If you’re ready to invest in Tulsa’s real estate market, contact the experts at Keyrenter Tulsa. We can assist through each step of the process, from deciding on a property, to screening tenants, to property maintenance and more!
Let us help you maximize your return on investment and minimize your stress. We’ve done it for countless other clients, and we can do it for you too!