Oklahoma City Secures Top Rank for Affordability Among Large U.S. Metros
Oklahoma City, Saturday, 28 February 2026.
With housing expenses more than 40% below the national average, Oklahoma City ranks as the most affordable large metropolitan area, offering a composite cost of living score of 81.2.
Economic Implications of the 2025 Cost of Living Index
The Council for Community and Economic Research (C2ER) released its 2025 annual Cost of Living Index in February 2026, providing a quantitative benchmark for economic competitiveness across the United States [1]. Oklahoma City’s composite score of 81.2 indicates that local household expenses are approximately 18.8% lower than the national average, a metric that serves as a critical indicator for purchasing power parity [1]. This affordability is not static; the metro’s composite score improved by declining 1.1 points from the 2024 annual release, driven by year-over-year cost reductions in housing, transportation, and health care [1]. For context within the broader economic landscape, while Tupelo, Mississippi, ranked as the least expensive urban area overall with a score of 78.8, Oklahoma City secured the top position specifically among large metropolitan areas with populations exceeding 500,000 [1]. This distinction places it ahead of major coastal economic hubs like Boston, San Jose, and Los Angeles, offering a stark contrast to markets such as Manhattan, where the cost of living score reached 238.9—more than double the national average [1].
Housing Market Dynamics and Price Tiers
Housing costs remain the primary lever for Oklahoma City’s favorable economic positioning, with the region posting a housing index of 58.7—more than 40% below the national baseline [1]. Data from January 2026 substantiates this index with tangible market values. While the national median sale price for a mid-tier home stands at $375,000, the comparable mid-tier price in Oklahoma City is $266,633, representing a significant capital preservation opportunity for residents [2]. For entry-level buyers, the disparity is equally pronounced; the median price for a starter home in Oklahoma City is $186,930, compared to the national starter tier median of $260,000 [2]. Even at the top of the market, the luxury tier in Oklahoma City averages $858,808, whereas the national luxury median has climbed to $1,341,493 [2]. This pricing structure supports a median household income of $79,119 in the metro area, allowing for a debt-to-income ratio that is often more sustainable than national averages would suggest [2].
Metro Area Growth and Investment Potential
The affordability narrative extends beyond the city center into the broader metro area, where specific municipalities are witnessing appreciation that signals a robust investment climate without eroding accessibility. As of January 2026, the typical home value in the United States reached $358,968 following a modest 0.2% annual increase [4]. In contrast, suburban markets within the Oklahoma City metro are outpacing this national growth rate. For instance, Tuttle recorded a 5.9% year-over-year increase in home values, bringing the typical price to $321,199 [4]. Similarly, Chickasha saw a 6.4% rise to $149,323, and Minco experienced a 5.4% increase to $174,172 [4]. These figures suggest that while the region maintains its low-cost status, it retains sufficient demand to drive asset appreciation, a balance that is attractive for both residential real estate investors and businesses seeking stable operating environments.
Strategic Advantages for Business and Workforce
For the corporate sector, these indices translate directly into operational efficiencies. The region’s low cost of living allows employers to offer competitive wages that provide a high standard of living while simultaneously managing lower overhead costs compared to other large metros [1]. This economic environment has contributed to a tight labor market; earlier data indicated Oklahoma City achieved the lowest unemployment rate among large metros at 2.3% [5]. Furthermore, the state’s financial environment has been recognized for consumer stability, ranking as the fourth easiest state for saving money according to Bankrate [5]. As inflationary pressures continue to influence national economic trends, Oklahoma City’s ability to combine low barriers to entry with a growing asset base positions it as a resilient hub for business expansion and talent retention in 2026.