LOCAL HOUSING STARTS

HOME CONSTRUCTION IN TULSA AREA SOARS IN 2020 WITH BEST YEAR IN MORE THAN A DECADE

What was a bummer for many private sectors in 2020 was a banner year for the local housing industry.

Housing starts for the area grew 22.8%, going from 3,080 in 2019 to 3,783 over the past 12 months, according to Tulsa-based New Orders Weekly. That total is the highest since 4,303 starts were recorded in 2007.

“Obviously, mortgage rates staying at an an alltime historic low were a factor,” Jeffrey Smith, CEO of the Home Builders Association of Greater Tulsa, said by phone. “Thirty-year mortgage rates at times in 2020 were in the low threes, maybe even two and seveneighths, which is just unheard of to be able to get money at that low of an interest rate.

“You also had stimulus money that was put into the economy. A lot of people weren’t negatively affected all that much by COVID financially. So, being able to have that extra stimulus money to use for downpayment assistance for a new purchase was a difference.”

December home construction also went up 57.6%, jumping from 234 in 2019 to 369.

Examining the broader numbers, Smith said stay-at-home orders issued early in the coronavirus outbreak cannot be overlooked.

“About all you heard for the last nine months of last year was stay home, work from home, do your activities from home,” he said. “Everything revolved around your home.”

“In the Tulsa area, we were ‘stuck’ at home for about seven to eight weeks at least. At that time, you were looking around the house and saying, `Gosh, wouldn’t it be nice if I had that home office? Wouldn’t it be nice if I had that third or fourth bedroom to be more comfortable? So, a lot of people made that decision that with the market good right now and interest rates low, let’s take advantage and buy that new home.”

Nationally, as well, more people are interested in buying homes, according to National Association of Home Builders’ latest housing trends report. The share of Americans considering the purchase of a home in the next 12 months was 15% in the fourth quarter of 2020, four percentage points higher than a year earlier and the largest over a three-year period. “I don’t think continuing to see an increase of 20% to 25% year over year is going to happen,” Smith said. “But having housing starts in the 3,500 to 4,500 range is very sustainable for the Tulsa market.”

As for home construction in area cities, Broken Arrow led 2020 with 839 starts. Second was Tulsa (472), followed by unincorporated Wagoner County (446) and Bixby (330).

“Broken Arrow has plenty of land left to develop and plenty of developments going on,” Smith said. “Tulsa, obviously, is landlocked. Open, available land is becoming somewhat limited, and most of the new construction in Tulsa is tear down and rebuild.

“But when you get into Broken Arrow, especially the south and east sides, you have a lot of developments going on and a lot of affordable developments going on. Most of the construction in 2020 was related to the more affordable housing, which I would say is $250,000 and below.”

Tulsa Area Housing Starts

TOTALS December /Year-to-Date

Bartlesville 2/24 Skiatook 1/48

Sand Springs 3/68

Collinsville 0/162 Owasso 7/132 Verdigris 2/61

Tulsa 47/472 Catoosa 3/45

369/3783

Claremore 4/61

Rogers County 16/293

Sapulpa 3/62

Kiefer 0/4 Tulsa County 34/271

Jenks 24/254 Broken Arrow 105/839

Glenpool 5/73 Bixby 40/330 Coweta 8/106 Wagoner County 63/446

Wagoner 0/4

Okmulgee 0/2

Source: Home Builders Association of Greater Tulsa

Muskogee 2/26

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