Oklahoma's Housing Paradox: Empty Homes, Scarce Affordable Rentals

Developers struggle to build new affordable housing as costs rise faster than incomes

Mar. 25, 2026 at 4:02pm

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Oklahoma faces a housing paradox - the state has over 220,000 vacant housing units, yet a shortage of more than 80,000 affordable rental homes for low-income residents. Developers say rising construction costs, insurance premiums, and interest rates make it difficult to build new affordable units, while older, cheaper properties fall into disrepair and are taken off the market. Local officials are working on strategies to increase housing supply and preserve existing affordable units, but experts warn there is no single solution to the complex problem.

Why it matters

Oklahoma's housing shortage has far-reaching consequences, making it difficult for rural communities to attract businesses and workers. The mismatch between available units and affordable rents puts financial strain on low-income households and threatens housing stability, with about one-third of Oklahoma renters considered cost-burdened.

The details

The housing paradox in Oklahoma stems from a widening gap between development costs and what renters can afford. Developers say rising insurance premiums, interest rates, and labor costs make many projects financially unviable, even as hundreds of thousands of units sit vacant. Many of these vacant properties are in poor condition and require extensive, costly repairs to become livable again. Meanwhile, older, more affordable apartment complexes are being redeveloped into higher-rent housing, reducing the supply of "naturally occurring affordable housing."

  • Oklahoma has over 220,000 vacant housing units, including nearly 39,000 listed as available for rent.
  • The state faces a shortage of more than 80,000 rental homes affordable to extremely low-income households.

The players

Lance Windel

Manager of LW Development, who has spent decades building and rehabilitating housing across Oklahoma.

Michael Laird

Real estate attorney who has worked on affordable housing projects in the state.

Sabine Brown

Housing policy analyst with the Oklahoma Policy Institute.

Shannon Entz

Housing and community development director for Oklahoma City.

Cynthia Campbell

With the Oklahoma Coalition for Affordable Housing.

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What they’re saying

“It's a math problem.”

— Lance Windel, Manager, LW Development

“You can make it work on paper for about five minutes. Then the numbers start breaking.”

— Lance Windel, Manager, LW Development

“The market is very good at producing housing for people who can afford it. It's much less effective at producing housing for people who can't.”

— Sabine Brown, Housing Policy Analyst, Oklahoma Policy Institute

“There has to be a barrier. Or why wouldn't they?”

— Cynthia Campbell, Oklahoma Coalition for Affordable Housing

“You're trying to line up five or six different things at once. If one of them doesn't show up, the whole thing falls apart.”

— Lance Windel, Manager, LW Development

What’s next

Lawmakers and local officials are exploring a range of solutions, including tax credits for converting abandoned buildings, zoning changes to allow more housing types, and infrastructure investments to support development. Cities are also experimenting with incentives, faster permitting, and partnerships with developers. At the federal level, policymakers are considering broader reforms aimed at increasing housing supply.

The takeaway

Oklahoma's housing shortage is a complex, multifaceted problem that cannot be solved with a single solution. Addressing the mismatch between available units and affordable rents will require coordinated efforts to increase housing supply, preserve existing affordable units, and align development incentives with the needs of the state's lowest-income residents.