Tulsa apartment rental rates on the rise
BY ROBERT EVATT World Staff Writer
Wednesday, January 23, 2013
1/23/13 at 7:17 AM
Good news for apartment owners is bad news for apartment dwellers - rents are up and are projected to keep climbing.
Monthly fees charged by local apartments increased an average of 2.9 percent in the last year, according to a new report from CB Richard Ellis/Oklahoma.
That means the average one-bedroom unit now goes for $494 per month, with two-bedroom/one bath units at $614 and two bedroom/two bath units at $659.
The price increases are a side-effect of a strengthening apartment market, according to the report, which said the average occupancy rate rose by half a percentage point to 92 percent.
David Forrest, author of the report, said rent growth has returned to a moderate pace after a few years of negligible growth or even slight decreases.
"In years we've had rent increases, it's usually about 3 percent," he said.
Forrest said the market rebound is coming from two sources.
First, the local economy continues to strengthen, with the Tulsa Regional Chamber predicting job growth of 1.8 percent this year. And second, the recent boom in apartment construction has met demand almost exactly and is now slowing, after 1,049 new units became available in 2012.
"If we hadn't had the new construction, occupancy would have been higher, though the new units have been absorbed well into the market," Forrest said.
At the present, two new apartment developments are under way - Case & Associates' 286-unit Cascata apartments at 81st Street and Mingo Road, and Bomasada Group's long-delayed 240-unit Enclave at Brookside at 1414 E. 39th St. Forrest noted that ground could be broken for two more complexes this year.
Apartments have also become a stronger draw for investors. The report says 18 properties with 50 or more units were sold in 2012, compared with 10 to 14 per year from 2007 to 2011. With such strong signs for apartment owners, Forrest said rental rates are poised to increase even more this year.
Original Print Headline: Apartment rental rates on the rise
Robert Evatt 918-581-8447