Oklahoma home sale prices have surged more than 29% since 2017, a recent study by Urban Institute found.
Rent in the state grew 10% over the same period, outpacing average weekly earnings, which have increased 5% since 2017.
Like many states in the U.S., Oklahoma does not have enough affordable housing to meet demand. But also like many states, Oklahoma localities have tools at their disposal to open opportunities for more development, according to UI. Here are four solutions derived from the report.
1) Better leverage vacant land
Most Oklahoma local governments have vacant or blighted land that could be used for housing development, stakeholders told UI. However, the process for gaining or transferring titles can be onerous, with wait times as long as three or more years in Tulsa, according to the report. A state law that went into effect last November — House Bill 2147 — aims to reduce that wait time for localities.
2) Expand the developer pipeline
Growing the pool of developers — particularly nonprofit developers — can boost affordable housing development, according to UI. Stakeholders told the organization that combined with a weak housing market and dearth of equity investors, Oklahoma “has long made it more difficult for out-of-state developers” to begin projects. Localities can attract more developers from out of state by lowering barriers and providing funding for training, technical assistance and capacity building.
3) Explore zoning and regulatory reform incentives
Exclusionary zoning policies in cities and counties can reduce or delay multifamily housing development, and local governments around the country are exploring reforms. Oklahoma City and Tulsa have both made efforts to ease restrictive zoning policies, but stakeholders told UI more reform is needed. “[It would be useful] if we could allow more types of housing by right without going through a hearing,” one stakeholder surveyed told UI. “We want to re-think how we do residential standards, and we want to see if we can do other processes.” Oklahoma could add incentives for local efforts that reduce predevelopment timelines, according to UI.
4) Target deeper affordability in housing programs
Oklahoma residents with the lowest incomes have the highest housing needs, but current housing programs tend to focus on “somewhat higher” income levels and limit opportunity, according to UI. The report also found that the state’s tax credits are disproportionately located in low-income areas. “Households receiving subsidies may not have a broad selection of neighborhoods in which to live,” the study states. The state’s housing programs can benefit from focusing more on residents with the lowest incomes, such as 30% or 50% of area median income, where they can have more impact.
