Tech Giants Choose Between Oklahoma & Texas

The Oklahoma Tech Boom

The real estate market has continued to boom despite macroeconomic concerns about inflation, government spending, and heightened demand for real estate. Now that Q2 of 2021 is in the books, Oklahoma is well-positioned to benefit from the growth of the real estate industry. Further, Oklahoma’s regulatory climate fosters ideal conditions for corporate operations and is starting to catch the eye of various tech giants as a place to open up shop. In line with the current trend towards places like Austin, Texas, Oklahoma can capitalize on the exodus from Silicon Valley. As this trend plays out, it will be important to keep an eye on residential real estate, commercial real estate, and general costs in the cities most likely to make a run at landing some of the tech behemoths looking to relocate. Specifically, Oklahoma City and Tulsa stand to have the most to gain.

Oklahoma City or Tulsa?

As the capital city, Oklahoma City currently benefits from both its location and access to various resources. While midwestern cities and Texas capture the biggest headlines for tech relocation, Oklahoma City has quietly moved the needle in terms of capturing tech prospects. In terms of overall business environment, Oklahoma City cracks the top 15 cities in the United States according to Evolution Finance. Many companies looking for lower corporate taxes and steady labor have already taken advantage of a growing Oklahoma City. Per CBRE, Oklahoma City’s total tech employment has ballooned to 19,410, which represents a 3% year over year increase.

Once you take a step back, this makes sense.

Oklahoma City is the biggest city in Oklahoma, so there is an abundance of labor. Further, general attractions, such as an NBA team and a flourishing commercial real estate market are also important considerations for businesses vetting new, prospective locations. This also benefits the labor force in Oklahoma City: over the previous 5 years, tech wages averaged $83,405, an increase of over 17%. As a city with relatively low costs of living, such salaries go much further than those in Silicon Valley. We also see this data in the educational statistics. In 2019, Oklahoma City posted over 1,100 new students who completed a tech degree.

While Oklahoma City gets more of the limelight, Tulsa has also made a run at luring some of the tech companies searching for a new home. Per CBRE’s latest report, Tulsa comes in at 24 on the list of annual Scoring Tech Talent Report. Tulsa is home to over 12,000 tech employees and has grown around 19% in the last 5 years. While Tulsa lags behind Oklahoma City in terms of tech wages by a narrow margin—an average of only $82,815—Tulsa comes out ahead when looking at software-developer wages. In fact, a software-developer makes around $1,000 more per year in Tulsa versus Oklahoma City.

As these tech giants continue to pour into Oklahoma at-large, the residential real estate market should reap the benefits—especially when it comes to agents. Due to these high wages and an influx of new labor, residential real estate demand continues to climb. Moreover, new construction has also spiked. This is important to keep prices under control due to the heightened demand. Real estate agents in Oklahoma will likely prosper because demand and supply should continue to balance each other out. This means that both a buyer’s agent and a seller’s agent will not be forced to grapple with some of the looming national real estate issues, such as too much demand. Further, with higher earnings potential comes a higher spending threshold for these homebuyers. Oklahoma agents will be able to get higher asking prices and will ultimately earn a higher commission. To find out more about how much a real estate agent in Oklahoma makes, check out this article.

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