Published May 18, 2022

Are Corporate Investors Affecting the Oklahoma City Metro Real Estate Market?

Written by Ryan Hukill

Are Corporate Investors Affecting the Oklahoma City Metro Real Estate Market? header image.

I was asked yesterday by Richard Mize, Real Estate Editor at The Oklahoman for my thoughts on some recent data published by the National Association of Realtors:

This just in, from NAR: The top 10 states with the highest institutional buyer share in 2021 were Texas (28%), Georgia (19%), Oklahoma (18%), Alabama (18%), Mississippi (17%), Florida (16%), Missouri (16%), North Carolina (16%), Ohio (16%), and Utah (16%).

(Source: Impact of Institutional Buyers on Home Sales and Single-Family Rentals - really interesting data here.)

Here's what I shared with him:

Richard,

We've certainly seen the corporate investment firms at play in our local market, and in many cases it can be tough for the Average Joe family to compete with them. Entry-level buyers seem to be affected most because that price point is highly-desired by investors. Many first-time homebuyers simply don't have the cash to compete. Higher prices and rising interest rates just compound that problem.

Now more than ever, it's critically important for buyers to align with a top-notch local mortgage lender, and take their agent's advice, to win in these competitions.

One of my recent Edmond listings in the entry-level price range had over a dozen offers and about 1/4 of them were from corporate investment firms. Another 1/4 were from local mom & pop type investors. This particular seller was mindful of how difficult it is for families to buy these properties and was able to accept such an offer, even though it meant a slightly lower bottom line for them. Fortunately that buyer had all the right terms in their offer, making the seller feel secure in accepting it.

The appeal of corporate investment offers for many sellers is cash, quick closings, and no repairs. But those things can be risky also. Sellers need to be mindful that we're seeing quite a few of these firms make very appealing offers to beat the others, only to back out a few days later after running their numbers, or turn around and demand a huge discount from the seller after inspections; basically a bait & switch.

Overall, it's just not going to get easier for buyers, especially in the lower price ranges. The record-low supply of available homes and increasing construction costs continue to raise the price ceiling. Sadly, the end result is that many entry-level buyers are getting priced out of the market altogether.

Let me know your thoughts, or any questions you may have. As always, you can call or text me at 405-477-1881.

Here's the story Richard Mize published as a result of input from myself and several other top local agents & brokers.