Oklahoma home prices reach historic highs, is it a bubble?

In Oklahoma, significant changes in housing prices have been observed throughout 2024. As of November 2024, the Zillow home value index, which encompasses home values for 305 ZIP codes in the state, indicates historic highs in property prices. The analysis takes into account data from both the latest month and an average over the previous year, comprehensively evaluating trends in the housing market. The increase in real estate values reflects broader economic conditions and demographic trends driving demand for housing in desirable areas. Particularly notable is ZIP code 73007, centered on Arcadia, located northeast of Oklahoma City. This ZIP code holds the top position for the highest home values in the state, with a median home value escalating by over 40% from November 2019 to reach $479,343 in November 2024. The socioeconomic profile of this area showcases high incomes, evidenced by the median household income reported at $176,808. Compared to broader averages across Oklahoma, incomes in this region are markedly higher, contributing to the rising property prices. Following 73007, the second most expensive ZIP code, 73025, also displays substantial growth, with its median home value reflecting an increase alongside high-income brackets. Although not as pronounced as in 73007, the figures demonstrate resilience and demand in the housing market. The third position is held by ZIP code 73173, which, despite notable increases in home values, still lags compared to the top two ZIP codes in terms of both income levels and home prices. As seen in ZIP code 74137, which ranks fourth, home values have also been on the rise, climbing from $295,054 in 2019 to nearly $399,497 in 2024. The growth in these areas suggests a continued trend of rising home prices driven by local demand, suggesting sustainability in the market fostered by strong demographic groups capable of supporting such valuations. Overall, the representing data from these sources highlights that the real estate market within Oklahoma is evolving, with implications for both residents and potential buyers in the future.