December 2023 - OKC vs Mustang

Rental Market Summary & Key Takeaways

Oklahoma City Key Takeaways

Landlords

Stable Growth Potential: The year-over-year increase of $80 suggests a steady growth in rental value, indicating a healthy market for long-term investments.

Balanced Market Dynamics: A 'warm' market temperature implies a balanced demand and supply, providing a stable environment for consistent rental income.

Moderate Market Liquidity: With an average of 42 days on the market, landlords can expect a reasonable turnover rate, allowing for reliable occupancy and income streams. 

Tenants

Slight Increase in Costs: With rents rising month-over-month and year-over-year, tenants should be mindful of slight cost increases and may need to adjust their housing budgets accordingly.

Stable Rental Market: The warm market indicates a balanced situation between supply and demand, meaning tenants should not feel undue pressure to rush into renting due to fear of shortages or rapid price increases.

Ample Choices: With a good number of available rentals (515), tenants have the luxury of choice, enabling them to shop around for the best deal that meets their needs and preferences.

Mustang Key Takeaways

Landlords

Strong Rent Growth: A significant month-over-month rent increase of $91 and a year-over-year increase of $70 indicate robust growth in the local rental market, pointing towards the potential for higher rental yields.

Shifting Market Conditions: Despite the rent increase, the market temperature is cool. This could signal an opportunity for landlords to differentiate their properties or adjust strategies to maintain competitiveness.

Quickening Rental Pace: The average days on the market have decreased to 29 days, showing a faster pace for renting out properties and a lower likelihood of prolonged vacancies, which is beneficial for landlords’ cash flow and return on investment.

Tenants

Substantial Rent Increases: Tenants should be aware of the significant rise in rental prices both over the past month and year, indicating a trend towards higher rents in the area.

Competitive Market Environment: A cool market with a reduced number of days on market suggests a competitive environment. Despite the cool designation, the faster turnover rate means tenants may need to act quickly when they find suitable housing options.

Limited Inventory: With only 32 rentals available, the choices are more limited, which may require tenants to be more decisive to secure a rental quickly.

Sources & Additional Information:

• Market temperature is based on changes in renter demand compared to the national average.
• For example, a hot market has increasing demand.
• Temperature is based on all bedrooms and all property types.
• Median rent - 3-bedroom houses: (1) Tulsa - $1,475; (2) Owasso - $1,783; (3) National average - $1,850.
• Bordo, Jonas. “The Complete 2023 Guide to Rent Prices in the US.” Accessed 20 Nov. 2023.
• Source: zillow.com 2023, rental-manager/market-trends/tulsa-ok, Accessed 26 Dec. 2023.
• Source: zillow.com 2023, rental-manager/market-trends/Owasso-ok, Accessed 26 Dec. 2023.