In recent years, we’ve witnessed a significant trend – people leaving high-cost-of-living states in pursuit of more affordable options. If you’re considering joining this exodus and setting your sights on the great state of Oklahoma, you’re in the right place. I’m Marcie Billen, your Oklahoma City Metro real estate agent, and in this blog post, I’m going to provide you with a comprehensive update on the cost of living in Oklahoma. This is an update from the video about the cost of living in Oklahoma that I made a few years ago.
Housing Costs:
Let’s start by delving into housing costs. In the ever-expensive landscape of Glendale, California, the median home price hovers around a staggering $1 million. For comparison, you can snag a one-bedroom, one-bath condo in Glendale for approximately $480,000. Now, shift your focus to Orlando, Florida, where the median home price stands at $370,000. Contrast that with the Oklahoma City Metro, where you can find a median-priced home for $260,000. Keep in mind that in Oklahoma, single-family homes reign supreme, making them more prevalent than condos or townhouses.
Oklahoma City leads the pack as the state’s largest city, followed by Tulsa and Norman. The current median home price in Tulsa sits at $223,000, while in Norman, where I call home, it’s $268,000.
Rent Prices:
Transitioning to rent prices, we’ll be focusing on two-bedroom condos. In Glendale, California, you’re looking at a median rent of a hefty $3,410 per month. Shift your gaze to Orlando, Florida, and the price tag for a two-bedroom condo is $1,969 per month. In the Oklahoma City area, you can expect to pay around $1,099 per month for a two-bedroom apartment. Remember, these figures are for apartments; single-family housing typically comes at a slightly higher cost. If you’re considering smaller towns, you might find even more budget-friendly options. For a deeper dive into affordable Oklahoma living, check out my video on Five Cheap Places to Live in Oklahoma.
Taxes:
Now, let’s tackle taxes, starting with property taxes. In Oklahoma, property taxes typically remain under 1.12% of your purchase price during the first few years of homeownership. For example, if you purchase a $260,000 house, your annual property taxes are likely to be less than $2,900 during those initial years.
Electricity Costs:
Electricity costs can vary widely based on factors like home size and HVAC efficiency. In Oklahoma City, a monthly electricity bill rarely exceeds $200. It’s essential to note that Oklahomans often opt for a 12-month average billing plan to stabilize costs, as electricity expenses tend to spike during the summer months.
In Oklahoma, we also do not have the ability to choose our electric company typically it’s going to be OG&E if you live in Oklahoma City but and I’m going to link their website below so that you can check their rates if you would like.
Solar panels are also a popular option right now in Oklahoma I actually have solar panels on my house as does about 20% of my neighborhood, there is a tax rebate available for the solar panels. Nearly every home in Oklahoma has natural gas appliances or has natural gas running to the house because we are in oil and gas state and I don’t see that going away very soon. Most commonly what’s going to run on natural gas in your house is going to be your furnace and your hot water tank, you may also have a stove that runs on natural gas and a cooktop and if you live in town your fireplace may run on natural gas as well a lot of times it does because it’s hard to access firewood in the middle of town.
Gas Bill:
Natural gas plays a significant role in Oklahoma homes, particularly for furnaces and hot water tanks. The average gas bill in Norman, where I reside in a 1,700-square-foot house built in 2021, is approximately $72 per month. Keep in mind that gas bills can fluctuate based on usage, especially during colder months.
Water Bill:
Norman and Oklahoma City handle trash and water services, with combined bills rarely exceeding $70 per month. Water bills typically range from $55 to $60 per month and include trash and recycling. In some rural areas, private companies manage trash services, particularly for homes with water wells.
Gas Costs:
When it comes to fueling your car, Oklahoma often offers more affordable gas prices compared to other parts of the country. As of today, California’s average gas price stands at $4.82 per gallon, while Florida’s is $3.54. In Oklahoma, you’ll find a more budget-friendly average of $3.17 per gallon.
Public Transportation:
Public transportation options in Oklahoma are limited, primarily serving larger cities like Tulsa, Oklahoma City, and Norman. Depending on public transportation may lead to longer commutes, so it’s essential to consider your transportation needs carefully.
Food and Grocery Costs:
The cost of food and groceries in Oklahoma has steadily increased over the years. According to the Bureau of Economic Analysis, Oklahomans can expect to pay an average of $230 per month per person for groceries and food expenses outside of restaurants. Keep in mind that individual spending habits can vary.
Sales Tax:
Sales tax can be a bit perplexing, but let’s break it down. Oklahoma falls somewhere in the middle of all states in terms of sales tax rates. The state sales tax is 4.5%, with the combined state and county average at 8.98%. However, sales tax rates can vary by county. For example, in Rogers County, it’s lower than in Cleveland County.
Income Tax:
When it comes to income tax, Oklahoma residents are subject to a tax rate ranging from 0% to 5% of their income. This compares favorably to California, which boasts nine different tax brackets ranging from 1% to 12.3%. Meanwhile, Florida residents enjoy the absence of state income tax, similar to Texas.
I hope this post has shed light on the cost of living in Oklahoma and helps you make informed decisions if you’re planning to relocate to the Sooner State. For more information and personalized advice, feel free to check out my video, download my relocation guide, or contact me through the provided details below.
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