Oklahoma City's multifamily sector has enjoyed notable gains for the most across the board recently but new supply entering the market could weigh on the performance in 2025.
Occupancy went up 50 basis points to 94.1 percent in the fourth quarter from the previous three months, according to a market report from Colliers. Vacancy averaged 9.9 percent in the city, with the lowest rate in the Grady County submarket at 6.2 percent. The highest is in Northeast Oklahoma City, at 16.6 percent.
"Class A properties maintained the highest occupancy at 94.7%, while all other property classes also saw occupancy gains," the CRE firm wrote in an analysis.
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Demand was strong, as 981 units were absorbed in the fourth quarter, nearly 200 more than in the previous three months. At the end of 2023, absorption was negative at -16.
The one weakness in the last three months of the year was that average asking rents pulled back to $1,032 compared with $1,041 in the third quarter. The decline may have come due to increasing inventory, as there were 103,784 total units on the market at the end of the year versus 103,271 in the three months prior and 101,658 at the conclusion of 2023.
The supply trend could lead to a cooldown at the end of this year. In the fourth quarter of 2025, 1,108 units are expected to be delivered.
As a result, Colliers projects that occupancy will slip in the last three months of 2025 to 93.5 percent, with just 413 units getting positively absorbed. Meanwhile, rents are expected to grow to $1,065.
"Despite these fluctuations, the overall market outlook remains optimistic, with supply adjustments expected to stabilize the market and enhance its appeal to a growing population," Colliers wrote.
The trends look similar in another Oklahoma multifamily market — Tulsa. Rents are expected to increase — while absorption is expected to decline to negative territory and occupancy is projected to dip to 93 percent in the fourth quarter of 2025 (from 94.4 percent), according to a separate report from Colliers.
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