Oklahoma multifamily rents continue to rise as construction slows

Oklahoma multifamily market overview

Operating conditions across the largest Oklahoma multifamily markets strengthened in recent periods, supported by steady rent growth and a sharp pullback in new supply. Developers completed roughly 3,700 units in 2024, then 2,200 units in 2025, but just 300 units came online in the first quarter of 2026, signaling a meaningful contraction in the pipeline. Against this easing supply backdrop, the combined markets absorbed 3,900 units in 2025, with Tulsa’s South/Broken Arrow submarket leading new demand. Vacancy held tight, ending the first quarter at 4.8%, up only 10 basis points for the period and down 40 basis points year over year. Rent growth has been one of the region’s most consistent trends, with annual gains ranging between roughly 2.0% and 3.5% since 2022, following a sharp increase in 2021. Rent increases were recorded across nearly every submarket.

The multifamily investment market in Oklahoma has remained quiet by historical standards. Transaction velocity fell 54% from 2024 to 2025, and total sales during the first quarter lagged levels recorded in the same period of last year by 17%. Cap rates generally ranged between 6.5% and 7.0% over the trailing 12 months, reflecting the value-oriented pricing of these markets. One dynamic that stands out is the geographic distribution of sales activity. Oklahoma City accounts for 59% of the total multifamily inventory in the region, while Tulsa accounts for the remaining 41%. Despite the size disparity, the number of multifamily investment sales has been distributed equally between the Oklahoma City and Tulsa markets since the beginning of 2024. Tulsa’s comparatively tighter vacancy and stronger absorption are drawing investor interest. Pricing closely tracked levels recorded last year. Year to date, the median price is $60,700 per unit, down 5% from 2025.

Looking ahead:

The operating outlook for Oklahoma City and Tulsa is favorable heading into the remainder of 2026. With only 1,000 units scheduled for delivery this year, a 55% reduction from 2025, operators should benefit from slowing supply growth and continued renter demand. Edmond/Logan County and Central Tulsa will receive the greatest share of new units but are also the submarkets demonstrating the strongest rent growth. Steady renter demand, underpinned by employment growth in 2026, should be more than sufficient to absorb the incoming inventory. The local economy should be supported by the state’s position as one of the leaders in energy technology and production, a sector that totals more than 135,000 jobs statewide.

The investment market is expected to gradually broaden as the year progresses, though a meaningful rebound in transaction volume may take time to develop. The Class C segment has historically dominated the sales mix, and average cap rates in the 6.5%-7.0% range reflect the value-oriented pricing expectations that define these markets. However, the fundamental case for increased investment activity may be driven by the sales of new Class A products. Development was strong in 2024 and 2025 as roughly 6,000 units came online in these years combined. As these assets stabilize, opportunities for Class A investment may emerge. Tightening vacancy and continued rent growth should align property performance and buyer expectations. As the transaction mix normalizes, sales volumes should recover toward more historically representative levels.

Learn more about Oklahoma's multifamily market

Contact the experts at our Tulsa, OK office today!