Oklahoma has a housing problem. Faltering local economies and development disagreements are stalling needed housing development in rural areas, while zoning and building codes prevent much-needed small housing statewide. As a result, 41% of Oklahomans are cost-burdened, spending more than 30% of their incomes on housing expenses. Oklahoma ranks 10th in poverty, with a median household income in the 12th percentile.The new Oklahoma 2024 Housing Needs Assessment shows the state’s greatest need is for the types of homes that are hardest for builders to accomplish: small and affordable. The state recently diverted hundreds of millions of taxpayer dollars toward builder loans to lessen the housing problem, but several municipal-level housing rules stand between homebuilders and progress. Fewer Bedrooms Necessary The Oklahoma 2024 Housing Needs Assessment was released in the fall after two years in development.  A product of University of Oklahoma students and faculty, the Oklahoma Housing Finance Agency commissioned the assessment for $925,000 as a deep dive into the state’s existing housing, household incomes and size, and housing needs. The assessment shows that in rural and urban areas alike, small dwellings such as studio and one-bedroom homes are the most needed type of housing across all income groups. the latest Tenants On the Wrong Side of Policy by Heather Warlick December 23, 2024December 23, 2024 “Across the nation, an aging population and a decline in births means fewer large units will be needed for families and more units will be needed for single-person and non-family households,” an executive summary for the Housing Needs Assessment states. Small homes and low-income homes are the most difficult to build, said Lance Windel, owner of LW Development. He specializes in affordable and low-income housing and innovative building techniques he said allow him to maximize efficiency for cost savings. When building small, the most expensive elements remain the same: a developed plot of land, a kitchen, bathrooms, a roof and permits.“Bigger builders, they prefer bigger houses because there’s cheap square footage in the living rooms and bedrooms,” Windel said. “The plumber doesn’t care that you put in really nice granite countertops or not, right? His cost is about the same. That’s the problem.”Zoning laws further complicate the process of building studios and one-bedrooms. When residential areas are zoned mostly for single-family homes of a certain lot size, there is little space for multifamily options, tiny homes and other alternative housing. Oklahoma Watch reported in April on Oklahoma’s exclusionary zoning laws; residential land is disproportionately skewed toward single-family zoning, particularly in Norman, Oklahoma City and Tulsa. In Norman, 98% of residential land is zoned for single-family homes; in Oklahoma City, 96% and in Tulsa, 81% of residential land is zoned exclusively for single-family dwellings. “Woodward or Duncan, or even the smaller towns like Madill, they all have some zoning and planning requirements,” Windel said. Shawn Schaefer suggested easing restrictions, allowing for more accessory dwelling units like granny flats and garage apartments. Schaefer is an associate professor of urban design for the Gibbs College of Architecture at University of Oklahoma and a lead content expert for the Housing Assessment. “And then also, could we go with smaller lot sizes, less frontages, so that we could maybe do some lot splits on some of these?” he said.  “I think neighborhoods would be more willing to accept that sort of thing than introducing more high density apartment complexes in their neighborhoods or near their neighborhoods.”Allowing more tiny homes and other types of manufactured housing could also help, Schaefer said. Housing for Speculation The assessment also revealed a rising need for workforce housing, particularly in rural areas. Workforce housing refers to homes priced for households earning 80% to 120% of the area median income. When lobbying for legislation to create the Oklahoma Housing Stability Program last year, rural lawmakers pointed to the lack of available workforce housing as a deterrent to companies that might otherwise bring economic development to faltering communities, Sen. Julia Kirt, D-Oklahoma City, said. Population declines in rural areas have led to aging housing in need of updating and replacement, but the assessment showed little and slow movement toward development in many of Oklahoma’s 77 counties.Oklahoma and Tulsa counties accounted for 90% of building permits during the past decade, the assessment showed in its trend analysis. Cleveland County comes in third. Some counties go years with few permit applications; for example, Beaver County has only recorded nine new building permits since 2010. “You don’t get a lot of new builders coming in some of these areas to build housing, or landlords may not be upgrading units, or homeowners even may not be able to keep up with maintenance and things,” Schaefer said. It’s even difficult to find skilled workers to build homes in many rural areas, Windel said. Cart Before the HorseBefore the Housing Needs Assessment was published, the Oklahoma Legislature passed the Oklahoma Housing Stability Act, which created the new Housing Stability Program administered by the Oklahoma Housing Finance Agency. The Oklahoma Housing Stability Act is the state’s largest investment into housing of its kind, with $215 million of taxpayer money directed toward adding more affordable housing in the state, particularly in rural areas. Windel was among the first homebuilders approved for both a Homebuilder Loan and Increased Housing Loan. He said he plans to build homes for resale in Kingfisher and rentals in Ardmore through the program.The program is a good first attempt at using state tax dollars to help ease the strain on Oklahoma housing, Windel said, but OHFA didn’t factor in the costs associated with developing plats and infrastructure in rural areas when designing the Housing Stability Program parameters. The cost of building skyrockets when those costs are funneled to builders. Windel said he has been put off by the costs of developing his own sites in some areas with especially strict infrastructure standards. Heather Warlick is a reporter covering evictions, housing and homelessness. Contact her at (405) 226-1915 or [email protected]. More from Heather Warlick State Housing Assessment Shows Small Homes In DemandThe state’s new Oklahoma 2024 Housing Needs Assessment shows the state’s greatest need is for the types of homes that are hardest for Oklahoma builders to accomplish – small and affordable. Tenants On the Wrong Side of PolicyOklahoma is a landlord-friendly state with eviction policies that often leave tenants in the cold. From quick-evict timelines to predatory managers, Oklahoma laws are easy on landlords and tough on tenants. Here are five things to know about Oklahoma evictions. HUD Ends Section 8 at Duncan Apartments, Residents Told To LeaveAfter years of mismanagement, a national slumlord may be held accountable but low-income residents in Duncan face the holidays with uncertainty knowing soon, they’ll be forced to vacate their homes. The post State Housing Assessment Shows Small Homes In Demand appeared first on Oklahoma Watch.