What Makes A Boring Real Estate Market Like Oklahoma City so Damn Sexy?
What makes a real estate market sexy? If Oklahoma City is not considered a sexy market why is it such a good choice for real estate investors? There are many real estate investors out there taking advantage of the opportunity that single family homes are offering these days. Most people are now convinced that indeed they will probably never again see such incredible alignment of low prices and low interest rates with high demand for housing.
Many investors have even become educated that indeed, the real estate market is all about location so they have been doing diligence and understanding that they need to be buying in the right location.
For most the part, the right location is the location they see everyone else investing in, the sexy market. The challenge comes when everyone starts chasing the same (so called) "hot" market. When this happens the cream starts getting skimmed off the top. In other words there are so many people bidding on the same property that the great deals start to become less attractive (less lucrative). Oklahoma City may not be considered a sexy market which makes it very desirable to the seasoned investor.
You see the mass media has not talked much about this city, after all what is exciting about Oklahoma City; rarely does it make the news let alone the international news. Often it is these silent non-recognized cities that create the best opportunities. Once everyone starts talking about a market then the masses come over to invest which brings in the institutional investors from Wall Street and all the hedge fund managers. When this happens it gains media attention and then it is considered a hot market. For now we have the head start and the head start is where opportunities exist.
So what are those silent attributes that makes Oklahoma City such a good real estate investment opportunity?
- High rents compared to purchase prices
- High demand for rental units with low vacancies
- Easy and fast eviction laws
- High incomes relative to home prices - housing cost to income ratio is only 20%. Almost half of the national average.
- Low unemployment (only 5%)
- Great school systems
- Undervalued market
- Baby boomer appeal
- Local government with a 15 year growth initiative (in full swing and effective)
Yes, these are qualities that a true seasoned investor finds very attractive. When you compare the attributes of Oklahoma City to most markets I believe you will see the attraction as well.
Find out more about why we are so excited about the Oklahoma City real estate investing market!