Oklahoma City Multifamily Rent on the Rise in the New Year
admin / March 2021
Steady Demand, Limited Construction Keep Vacancies at Five-Year Low
The Oklahoma City apartment market is enjoying tight vacancy rates and strong rent growth through mid-February. Careful construction, steady absorption and relatively affordable asking rents are enabling the market to weather the pandemic-driven recession with relative ease.
Despite economic turmoil, annual rents are appreciating beyond rates posted in the past three years. Rent growth is pervasive apart from Downtown, where asking rents are 50% above the market average. Rent cuts in downtown Oklahoma City are trending near 0.5% through February, a stark improvement from cuts of 3.8% reported in mid-2020.
Demand for new units remains consistent through February, keeping vacancy rates at their lowest point in five years. Absorption levels are picking up in Central Oklahoma City, as several renovation projects are wrapping up. Meanwhile, Canadian County, Norman and Northwest Oklahoma City remain top destinations for renters.
Construction activity remains conservative compared to previous building cycles, as apartment developers have approached projects with greater prudence since coming out of the energy downturn five years ago. Construction activity is ranging between 1,800 and 2,000 units underway, accounting for 2% of existing inventory. Lower construction levels are insulating vacancy rates from supply-side pressure.
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