OKC home prices may be more affordable than you think
This might come as a surprise, but despite a 14% jump in home prices in just a year — one mere year — Oklahoma City still has some of the most affordable houses in the country, new research shows.
Affordability actually improved the past month, according to RealtyHop.com, an online housing marketplace geared toward investors and “buyers with an investment mindset.”
RealtyHop ranked Oklahoma City as the ninth-most-affordable of the 100 biggest U.S. cities, based on a median asking price of $229,495.
That lines up well with local statistics, which is not always the case when national firms start weighing in on local markets. So bravo for that.
The median sold price here through July was $229,000, up 14% compared with the first seven months of 2020, according to the Oklahoma City Metro Association of Realtors.
The average price here through July was $264,783, also up 14%, the Realtors said, and in July houses listed with Realtors sold, on average, after just 11 days on the market, and with a mere month of inventory for sale.
RealtyHop said its monthly ranking for Oklahoma City is based on the percentage of annual household income required for homeownership in each market, which it determined was 24.49% for its September Housing Affordability Index.
That was based on annual household income of $55,557 and an estimated average monthly mortgage payment, plus property taxes, of $1,133.95.
Oklahoma City was a little more affordable than Tulsa, by the way, even with smaller numbers across the board.
New York-based RealtyHop ranked Tulsa as 15th-most-affordable of the 100 biggest cities, with 25.81% of annual household income required for home ownership.
Tulsa’s median asking price was $204,500, with annual household income of $47,650 and an estimated monthly house payment of $1,024.70.
You see why, even with prices on the rise in a sellers’ market, people are moving to Oklahoma from the coasts. The five least affordable markets, according to RealtyHop, were:
• No. 1: New York City, with a median asking price of $967,000, which means homeowners spend 82.92% of annual household income on the mortgage and taxes.
• No. 2: Los Angeles, with a median asking price of $930,000, requiring 82.52% of annual income to own a house.
• No. 3. Miami, Florida: Median asking price: $552,000, requiring 82% of income.
• No. 4. Newark, New Jersey: Median
asking price, $350,000, requiring 67.6%.
• No. 5: San Francisco, OMG: Median asking price, $1.4 million. Even with an annual household income of $112,449, it cost 65.5% of it to own a home.
Now for the five most affordable markets, according to RealtyHop:
• No. 1. Detroit, with a median asking price of $79,900, which means homeowners spend 17.6% of annual household income on the mortgage and taxes. That’s based on annual household income of $30,894.
• No. 2. Wichita, Kansas: Home values jumped more than 3% in August, but the city is still one of the most affordable markets, with a median asking price of $155,000 and 18.2% of income required to pay principal and interest on a home loan, plus taxes.
• No. 3. Fort Wayne, Indiana, with a median asking price of $169,900, requiring 19.9% of annual income to own a house.
• No. 4. Anchorage, Alaska: Median asking price, $329,000, requiring 23.7% of income.
• No. 5. Chesapeake, Virginia: Median asking price, $325,000, requiring 24%.
Statistics are sneaky, you know. But, while it could be better, it could be a lot worse, and statistically speaking, you’re doing fine, Oklahoma City.