Oklahoma City, Oklahoma
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COMPREHENSIVE HOUSING MARKET ANALYSIS Oklahoma City, Oklahoma U.S. Department of Housing and Urban Development Office of Policy Development and Research As of April 1, 2014 Summary Economy Rental Market Nonfarm payrolls in the Oklahoma Housing Market Area Rental housing market conditions are City HMA are at record high levels. currently slightly soft but improving in During the 12 months ending March the HMA. As of April 1, 2014, the 2014, nonfarm payrolls totaled 610,900 rental vacancy rate was an estimated jobs, increasing by 13,500 jobs, or 2.3 7.3 percent, down from 10.4 percent in Major Garfield Noble Pawnee percent, from a year earlier. During April 2010. During the forecast period, Payne the 3-year forecast period, nonfarm Kingfisher Blaine demand is estimated for 8,225 new Logan Creek employment is expected to increase an Lincoln market-rate rental units (Table 1). The average of 2.1 percent annually. The Oklahoma Okfuskee 1,000 units currently under construc- Canadian three largest employers in the HMA tion will meet a portion of the demand. are the state government of Oklahoma, Cleveland Pottawa- tomie Semi- Caddo nole OU, and Tinker AFB, which combined Table 1. Housing Demand in the Grady McClain account for nearly 12 percent of all Oklahoma City HMA During nonfarm payroll jobs. Table DP-1, at the 3-Year Forecast Period Garvin Pontotoc Comanche Stephens Murray the end of this report, provides addi - Oklahoma City HMA The Oklahoma City Housing Market tional employment data. Area (HMA), coterminous with the Sales Rental Units Units Oklahoma City, OK Metropolitan Sales Market Total demand 21,200 8,225 Statistical Area, comprises Canadian, Sales housing market conditions in Cleveland, Grady, Lincoln, Logan, Under the HMA were balanced as of April construction 500 1,000 McClain, and Oklahoma Counties in 1, 2014, with the sales vacancy rate Notes: Total demand represents estimated central Oklahoma. The HMA includes estimated at 1.5 percent, down from production necessary to achieve a balanced the state capital of Oklahoma (Okla - market at the end of the forecast period. 2.2 percent in April 2010. Demand is Units under construction as of April 1, 2014. homa City), the University of Oklahoma forecast for 21,200 new homes during A portion of the estimated 20,000 other (OU), and Tinker Air Force Base (AFB), vacant units in the HMA will likely satisfy the next 3 years (Table 1). The 500 some of the forecast demand. The forecast all of which contribute to the economic homes currently under construction period is April 1, 2014, to April 1, 2017. stability and growth of the HMA. and a portion of the estimated 20,000 Source: Estimates by analyst other vacant housing units that will likely reenter the sales market will satisfy some of the demand during Market Details the forecast period. Economic Conditions ............... 2 Population and Households ..... 6 Housing Market Trends ............ 8 Data Profile ............................. 13 Economic Conditions 2 he Oklahoma City HMA econ- which has an economic impact on the Tomy depends heavily on the HMA of more than $3 billion annually government sector, which comprised (U.S. Department of Defense). 125,700 jobs, or about 21 percent of The economy of the HMA expanded all nonfarm payrolls in the HMA, throughout most of the 2000s, with dur ing the 12 months ending March job growth occurring every year ex- 2014 (Figure 1). The state government cept during periods coinciding with of Oklahoma is the largest employer national economic downturns. From in the HMA, with 42,400 workers 2000 through 2004, nonfarm jobs in YSIS (Table 2). The second largest employ- the HMA increased by only 670, or er is OU, with a combined 16,100 full- 0.1 percent, annually, partly the result ANAL time employees at its main campus of the national economic recession in Norman and its Health Sciences that occurred during 2001. Economic Center near downtown Oklahoma expansion was considerable during City. OU has an annual economic im- 2005 and 2006, when nonfarm pay- pact on the HMA of nearly $2 billion rolls increased by an average of nearly (University of Oklahoma Community 11,000 jobs, or 2.0 percent, annually, Impact Report 2014). The third larg- led by strong gains in the mining, log- est employer is Tinker AFB, which ging, and construction sector, which employs 14,500 civilians and 8,600 increased by an average of 3,300 jobs, permanent military personnel and or 9.7 percent, annually. Increased Figure 1. Current Nonfarm Payroll Jobs in the Oklahoma City HMA, production stemming from price in- by Sector creases resulted in an average increase Mining, logging, & construction 7.8% of more than 1,850 jobs, or 18.6 per- Government 20.6% Manufacturing 5.9% cent, annually in the oil and gas in- COMPREHENSIVE HOUSING MARKET dustry, which accounted for nearly 60 Wholesale & retail trade 15.0% percent of the mining, logging, and Other services 3.6% construction sector gains. During the , OK • same period, the construction subsec- Leisure & hospitality 10.8% Transportation & utilities 2.7% Information 1.3% tor grew by an average of 1,450 jobs, Financial activities 5.6% or 6.0 percent, annually, partly because Education & health services 14.5% Professional & business services 12.3% of the numerous revitalization projects near downtown Oklahoma City. Revi - Note: Based on 12-month averages through March 2014. Source: U.S. Bureau of Labor Statistics talization efforts, totaling more than Oklahoma City $1.5 billion, included the construction Table 2. Major Employers in the Oklahoma City HMA of a minor league baseball stadium, Number of Name of Employer Nonfarm Payroll Sector sports arena, and pedestrian canal. Employees Developers also completed 10 residen- State of Oklahoma Government 42,400 tial developments, with approximately University of Oklahoma Government 16,100 Tinker Air Force Base (AFB) Government 14,500 2,200 units, in the downtown area. Federal Aviation Administration Government 7,500 During 2007 and 2008, the HMA econ- INTEGRIS Health Education & health services 6,000 Chesapeake Energy Corporation Mining, logging, & construction 4,000 omy continued to grow, albeit mod- Mercy Health System Education & health services 3,450 erately, with average annual payroll OGE Energy Corp. Mining, logging, & construction 3,450 Devon Energy Corporation Mining, logging, & construction 3,100 gains of 7,775 jobs, or 1.4 percent. AT&T Information 3,000 The education and health services Notes: Excludes local school districts. Number of employees at Tinker AFB excludes sector, which increased by 2,700, or military personnel. 3.5 percent, annually, led job growth. Sources: Greater Oklahoma City Chamber; University of Oklahoma; U.S. Department of Defense Economic Conditions Continued 3 The mining, logging, and construction or 2.4 percent, annually to 594,200 sector was the second leading growth jobs, with gains in nearly every sector. sector, increasing by 2,250, or 5.6 per- The mining, logging, and construction cent. sector led gains with an average annual increase of 3,300 jobs, or 8.0 percent. The effects of the national economic Continued strong demand for oil and recession, which began in December gas contributed to gains in the mining 2007 and ended in June 2009, did not and logging subsector, which increased reach the Oklahoma City HMA until by an average of 2,650 jobs, or 17.1 2009. During 2009 and 2010, nonfarm YSIS percent, annually. The wholesale and payrolls in the HMA decreased by an retail trade sector increased by an average of 8,750 jobs, or 1.5 percent, ANAL average of 2,500 jobs, or 3.0 percent, annually. Average annual gains of annually, with gains in the wholesale 1,750 jobs, or 1.5 percent, in the gov - trade subsector accounting for more ernment sector partially offset overall than one-half of this increase. The losses during this period, primarily be- manufacturing sector gained an average cause of increased hiring in the federal of 2,050 jobs, a 6.4-percent increase, and local government subsectors. The annually, in part because of widespread federal government subsector increased growth in the aerospace and the oil by an average of 1,200 jobs, or 4.6 and gas equipment manufacturing in- per cent, annually, in part because of dustries. Increased hiring by companies expansions at the Federal Aviation manufacturing pumps and compressors Administration’s Mike Monroney used at oil and gas well sites resulted Aeronautical Center. The local gov- in an average gain of nearly 300 jobs, ernment subsector gained an average or 20.0 percent, annually in the pump of 500 jobs, or 1.0 percent, annually, COMPREHENSIVE HOUSING MARKET and compressor manufacturing industry. mostly as a result of numerous ex- pansions at tribe-owned casinos. The The HMA economy continues to grow education and health services sector at a high rate. During the 12 months , OK • increased by 500 jobs, or 0.6 percent, ending March 2014, nonfarm payrolls annually as a result of numerous hos- increased by an average of 13,500, or pital expansions. Payrolls increased in 2.3 percent, to a record high of 610,900 the leisure and hospitality sector by jobs. The leisure and hospitality sector an average of 250 jobs, or 0.4 percent, led job growth, increasing by 3,600 jobs, as a result of new venues in and around or 5.8 percent, to 65,900 (Table 3). The Oklahoma City downtown Oklahoma City. These increased popularity of the Thunder venues included the newly renovated team contributed to gains in this sector. Chesapeake Energy Arena, home of Thunder home games had an economic the National Basketball Association impact on the HMA of more than $1.5 team, the Oklahoma City Thunder, million per game during the 2013 sea- which began its inaugural season in son, up from $1.2 million a year earlier the city in the fall of 2008.