You must consider several factors before investing in multifamily real estate. To assure a continuous and high return on investment, investors search for various reasons to invest in a specific state. Texas is one of the most popular states for real estate investors because it provides them with the enticing investment prospects they seek.
Texas vs. Oklahoma
in Multifamily Home Investing
Your investment decisions are affected by age, gender, median income, and population. If you rely on rental revenue as a landlord, you should consider if the population of the area where you intend to invest is growing or shrinking. As the population of a city diminishes, rental homes can become unoccupied. Future tenants will be in more demand, and occupancy rates will increase if the economy thrives. It will result in increased rental income and a greater return on investment.
There will continue to be a rental market in Texas. In recent years, however, many people from other states, such as Oklahoma City, have relocated to Texas for various reasons. These include inadequate security, transportation, low-income levels, and more concerns. If you reside in Texas, you would be able to resolve all of these concerns.
Texas has a population of thirty million, but Oklahoma has only four million people. Numerous individuals no longer feel safe in Oklahoma due to the rising crime rate. As a result, a substantial number of residents leave the area, and property values and rentals fall.
Regarding multifamily investment, the economic climate is crucial. When a city or town has a significant increase in job growth, the population increases, and the demand for rental homes rises as more people move to the region where the jobs are.
Another reason to avoid investing in real estate in Oklahoma City is the city’s relatively low-income levels, which imply that residents will have less disposable income to spend on rent than in other cities where residents earn significantly more from their jobs, which may have a long-term depressing effect on property prices.
You should also be aware that the overall demand for housing in OKC is much lower than in other cities. You may be unable to rent out your apartments efficiently. While many real estate investors in Texas and other popular cities do not have to worry about this, you may have to deal with many vacancies in OKC.
Texas is the place to go if you are seeking a robust rental market. It is a result of its thriving economy, which has produced an exceptional job market. Several factors contribute to the positive economic climate.
The most well-known aspect of the state is its oil and gas development, which has made it famous. The city’s strong economy is supported by the participation of numerous Fortune 500 companies, tech firms, and a vast array of employment prospects. Many health care industries, manufacturing firms, and major colleges and universities are involved. It is also an excellent place to find secure blue-collar jobs that maintain the nation’s base and backbone.
Neighborhoods around Oklahoma and Texas
Before investing in real estate in Oklahoma City, you should also research the city’s neighborhoods, as some are quite dangerous, and few people desire to reside there. As a result, it may be tough to rent out your houses in these locations, and consequently, there are many questionable neighborhoods around Oklahoma City.
Many of the most desirable areas in Texas, are ideal for retirement or beach vacations. Texas, for instance, is home to South Padre Island, which is renowned for its lovely beaches that are ideal for summer vacations. Other noteworthy Texas communities include Garden Ridge, located near San Antonio, and Memorial City, which provides upmarket entertainment and excellent cuisine.
Since there are not enough tourists in OKC, this further decreases the overall housing demand compared to regions with many tourists. Tourists need a place to stay, and the more tourists there are, the fewer housing options are left for the general public, and the more likely it is that property prices will continue to rise in the future.
There is no shortage of entertainment alternatives in Texas, each with its distinct attractions. In addition to the NBA’s San Antonio Spurs, MLB’s Texas Rangers, and NHL’s Dallas Stars, citizens can cheer for various other professional sports teams. The Dallas Cowboys/Cowgirls and Houston Texans games are popular pastimes in Texas.
OKC is not located on the coast; therefore, tenants cannot engage in surfing or other winter sports. As a result, residents may be less willing to spend as much money on housing as they would in locations where these activities are available. In contrast, several of Texas’s most desired places are great beach vacations. South Padre Island in Texas, for instance, is renowned for its lovely beaches that are ideal for summer vacations.
You should also be aware that OKC is not the most popular city. As a result, many investors avoid the Oklahoma region in favor of more desirable locales, such as Texas, which may have a long-term negative impact on property prices in OKC.
Those who wish to build their businesses will perform well in Texas, although, depending on the industry, getting skilled workers may be the most significant obstacle. Texas is ranked #34 by US News among the greatest states for education, whereas Oklahoma is ranked #42 at the bottom of the list.
According to the Small Business Administration, small businesses constituted 99.8 percent of Texas enterprises in 2021 (nearly three million establishments) and employed 4.9 million people (or 45.1 percent of the Texas workforce). It is dispersed over several businesses, primarily construction and professional, scientific, and technological services.
Establishing a business in Oklahoma City will be difficult due to the high crime rate, inadequate transportation, and lack of qualified workers. Your tenants may have trouble getting around and may have to rely on their cars, which may cost them a lot of money in the long run. They may also be unwilling to pay as much rent as they would in regions where they could get around efficiently by bike or public transportation and save a lot of money in the long run.