The Tulsa, Oklahoma multifamily market has been seeing big demand but that could flip this year, according to the latest report from Colliers.
In the fourth quarter, units absorbed hit 464, up from the 251 recorded in the previous three months. In addition, the figure is nearly nine-fold higher than the 54 posted in the final three months of 2023.
Occupancy was up by 30 basis points to 94.4 percent in the fourth quarter compared with the previous three months. The lowest vacancies were recorded in Osage County, which had a rate of only 1.9 percent, with Downtown Tulsa experiencing the highest at 14.9 percent. The average vacancy in Tulsa was eight percent.
Average rents were $1,010, which is $4 higher than the third quarter.
The overall demand was fueled by a "larger working population," according to Colliers. The unemployment rate was 4.2 percent in 2024 in Tulsa, while GDP increased by 3.3 percent year-over-year.
"These positive trends demonstrate the Tulsa market’s strength and resilience, signaling a booming yet stabilizing environment with strong demand and growth in both supply and rent," Colliers wrote.
The performance came even as the city set a new record for apartment completions at 1,088. However, it appears that the supply trend might spell some trouble for landlords in 2025. More than 39,060 units are projected to be under construction by the end of the year — way higher than the 829 units recorded after the fourth quarter of 2024, according to Colliers. And 568 apartment units are set for delivery this year, with inventory expected to expand to 72,376 units.
As a result, Colliers is predicting occupancy to drop to 93 percent and demand to be -477 units in the fourth quarter of 2025. Meanwhile, it expects rents on average to grow by $22 to $1,032.