Tulsa housing crisis faces $2.45 billion gap

Tulsa Housing Study highlights housing crisis, investment needs

An independent study of Tulsa’s housing crisis reveals a $2.45 billion gap that requires an estimated $245 million per year for 10 years from private, public and philanthropic investments to close.

“The needed investment is massive, but more affordable housing means more discretionary income and stability for every Tulsan.”

“I challenged Tulsans at my last State of the City address to invest $500 million over the next two years into housing, and we have established a task force on how the City can best collaborate with our community partners to address the housing shortage in Tulsa. This study reinforces the housing pace we must set for ourselves as a city, and makes it clear that our entire community can benefit economically from every dollar invested.”

“Tulsans are paying too much for rent and mortgage, driven by a lack of housing stock of all types. More fortunate Tulsans are stuck in homes they can’t afford, while Tulsans experiencing homelessness have programs to help them rent but nothing is available as prices and occupancy rates skyrocket.”

“There’s no greater economic impact than a community choosing to invest in itself, and this study underscores Tulsa’s significant housing needs as well as the public and private investments necessary to meet the demand. Because of the strategic community investments made over the last decade to achieve a growing neighborhood, Downtown Tulsa can be a pivotal location to meet the unmet demand for more housing across the spectrum of affordability to ensure Tulsa remains a welcoming and thriving community for all.”

“Housing investment is economic development, and this study makes it clear that the housing crisis is a burden to every Tulsan in every neighborhood. There is no silver bullet. This study shows a need for all types of housing and requires private, public and philanthropic investment.”

“Tulsa has a history of developing innovative, public-private partnerships to solve the city’s biggest challenges. The results of this study show that we must continue to invest in creative public finance tools that reduce the cost of development and de-risk building and investment. PartnerTulsa is committed to managing existing and developing new tools that will help us rise to the challenges we know exist, as well as partnering with the private developers that will be critical to addressing our housing needs.”

“The Tulsa Housing Authority is already building additional units and stands ready to build more, but Tulsa needs a multi-sector effort to close this housing gap. The problem won’t be solved overnight, but this study brings the need into the daylight.”

Tulsa Housing Study

The study is the first of its kind for Tulsa and provides data for leaders to make informed decisions and potential strategies to close the gap.

The study was paid for by The Anne and Henry Zarrow Foundation; facilitated by Housing Solutions; conducted by Development Strategies and Homebase; and supported by the City of Tulsa, Partner Tulsa, Downtown Tulsa Partnership and Tulsa Housing Authority.

Where could the funding come from?

The housing study estimates that about 85% of the needed $245 million annual investment can be made through conventional financing sources paired with gap-financing tools and existing public-sector programs. The remaining 15%, or $37 million, will require innovation and collaboration across the community

How should resources be spent?

The study breaks down Tulsa’s needs into seven areas that completely cover the city. All seven areas need substantial portions of the estimated $245 million per year. Overall, the study recommends about 20%, or $50 million per year, be spent on rehabilitation to support Tulsa’s existing housing market. 80%, or $195 million per year, should be spent on new construction.

Demand broken down by affordability

Income level by Tulsa’s average median income (AMI)	Total 10-Year Demand	Methods to Support Preservation and Development
Extremely Low Income (<30% AMI or <$20,000)	2,160 units	Federal housing programs such as Public Housing or Housing Choice Vouchers
Very Low Income (30% AMI to 50% AMI or $20,000 to $30,000)	1,790 units	Federal housing programs such as Public Housing or Housing Choice Vouchers Resources to help homeowners stay in current homes in Tulsa’s older housing stock
Low Income (50% AMI to 80% AMI or $33,000 to $54,000)	2,300 units	Low Income Housing Tax Credits, CDBG, HOME to support new development Resources to preserve existing affordable rental and ownership options
Moderate Income (80% AMI to 120% AMI $54,000 to $81,000)	2,290 units	Tax Increment Finance, Abatements, other housing assistance funds to support new development Investments in product development serving the high income bracket will reduce pressures and price increases for this income bracket
High Income (>120% AMI or >$81,000)	4,360 units	Largely developable without market interventions Support site development, permitting assistance, etc. to facilitate development and alleviate pressure on lower income brackets

Sources: Tulsa Housing Study, Zillow.com and The Atlantic.