Oklahoma is quietly becoming a prime destination for real estate investors looking to build from the ground up.
With affordable land, business-friendly zoning policies, and steady population growth in key metropolitan areas, the Sooner State presents an ideal environment for ground-up construction projects.
But navigating costs, financing requirements, permitting processes, and the right markets requires detailed insight and planning.
This guide explores where to build, how construction loans work, and what every investor should know before breaking ground in Oklahoma.
Start your application with Park Place FinanceWhy Oklahoma is a ground-up goldmine
Oklahoma offers a rare mix of investor-friendly features:
- Lower land and labor costs compared to national averages
- Business-friendly permitting in cities like Oklahoma City, Edmond, and Tulsa
- Growing demand for new housing in both rental and owner-occupied markets
- Infrastructure investments in metro and suburban areas
For example, Edmond’s East Edmond 15A PUD, a 645-acre planned development, will bring thousands of new residential units and commercial space to one of the state’s fastest-growing areas.
Meanwhile, the western suburbs of Oklahoma City—such as Yukon and Mustang—are attracting developers with competitive cap rates and proximity to job centers.
With both metro expansion and suburban demand on the rise, Oklahoma offers opportunities across several strategies, including spec builds, build-to-rent portfolios, and infill townhome projects.
Pro tip: Areas seeing school district expansion or major retail development are strong indicators of future demand.
How ground-up construction loans work in Oklahoma
A ground-up construction loan provides financing to cover everything from land acquisition and site prep to vertical construction.
Unlike traditional mortgages, these loans are draw-based—funds are released in stages tied to project milestones.
At Park Place Finance, investors can access flexible construction lending for residential projects, including:
- Loan-to-cost (LTC) ratios up to 90%
- Interest-only payments during construction
- Draw schedules based on completed phases
- No tax returns or W-2s required (asset-based lending)
Borrowers typically need:
- A detailed budget and scope of work
- A qualified builder or general contractor (GC)
- Recent comps or appraisal support for end value
- Experience (or a strong builder team, if the first project)
These loans are designed for speed and flexibility. Park Place Finance can fund deals in 7–10 business days after receiving a complete package.
The clearer and more complete your construction budget, timeline, and contractor information, the faster your loan can close.
Best Oklahoma cities and submarkets to build in
Oklahoma City Metro
- Edmond: One of the fastest-growing suburbs with high incomes and excellent schools. East Edmond’s PUD development adds long-term upside.
- Canadian County: Includes Yukon and El Reno—popular for single-family rental (SFR) and townhome builds.
- Moore & Norman: Strong absorption for new construction; good comps.
- Midtown OKC: Urban infill potential for multifamily or townhome construction.
Tulsa Metro
- Bixby: A high-growth, high-income suburb ideal for larger new builds.
- Cherry Street & Midtown: High demand for newer, walkable housing.
- Owasso & Broken Arrow: Good mix of affordability and buyer demand.
Secondary Cities to Watch
- Shawnee: Strong year-over-year home value growth
- Stillwater: College town appeal with growing build-to-rent interest
- Mustang: In the OKC metro, seeing increased permit activity
These areas offer strong fundamentals for construction: buyer demand, rising comps, and active infrastructure buildouts.
Look for municipalities offering development incentives, expedited permitting, or new utility investments.
Budgeting and permitting: what investors should know
Construction Costs
- Average cost per sq ft (mid-range new construction, Oklahoma): $110–$150
- Custom or higher-end builds: $160–$250+ per sq ft, depending on finishes and complexity
- Site prep, utility tie-ins, permit fees: Highly variable by municipality, soil conditions, and infrastructure access
Understanding these costs early helps investors avoid overruns.
Always verify soil condition, topography, and existing utility access when evaluating a parcel. These factors can shift your total budget by tens of thousands.
Cities like Oklahoma City and Tulsa offer structured permit processes.
For example:
- In Oklahoma City, separate permits are issued for building, electrical, mechanical, and plumbing trades. These are often submitted as part of a combined new construction package but reviewed and approved individually.
- Edmond charges a $105 plan review fee for residential projects. A re-review fee of $0.06 per square foot may apply if revised plans are submitted. Additional inspection and trade permit fees are assessed separately.
- Tulsa’s permit process includes plan review and submission requirements that vary based on project size, scope, and zoning classification. Projects often require multiple permits, including building, electrical, mechanical, and plumbing.
Common Budget Pitfalls
- Soil or grading issues that inflate site prep costs
- Permit delays from missing paperwork or unclear plans
- Utility connection fees are not included in the initial estimates
- Underestimating timeline (most builds take 9–12 months)
Always request a site feasibility review before closing on land. This can uncover major budget risks early.
Park Place Finance recommends including a 10–15% contingency for unknowns.
Maximizing ROI with a ground-up strategy
Ground-up isn’t just about building—it’s about building right.
Here’s how investors maximize returns:
- Spec builds: Sell finished homes in a rising market with low inventory
- Build-to-rent (BTR): Construct SFRs or small MF portfolios and refinance into a DSCR loan once leased
- Urban infill: Townhomes or duplexes in gentrifying areas with strong walkability
Each strategy has trade-offs. Spec builds offer faster exits but carry more market timing risk. BTR projects offer recurring cash flow but require leasing and property management services.
Smart investors match strategy to submarket. For example, BTR may thrive in Shawnee or Stillwater, while Midtown OKC may reward higher-density infill projects.
Park Place Finance can finance the construction and help refinance stabilized assets through rental or portfolio loan options.
FAQ: Ground-up construction in Oklahoma
What type of properties can I build with a ground-up loan?
You can use ground-up construction loans for single-family homes, duplexes, townhomes, or small multifamily properties, depending on the zoning and project scope.
Can I use a ground-up loan to buy the land as well?
Yes. Construction loans from Park Place Finance allow you to finance both the land purchase and construction costs in a single package.
Do I need a licensed general contractor (GC)?
While experienced investors may self-manage, most lenders—including Park Place Finance—prefer or require a licensed GC to manage the project. This ensures quality and timeline control.
How do I get draws released during construction?
Draws are typically released in phases, such as post-foundation, framing, rough-in, and final completion. Funds are disbursed after inspection or verified progress reports.
What permits are required before starting a build in Oklahoma?
You’ll need to secure building permits, as well as electrical, mechanical, and plumbing permits, in most cities. Requirements vary, so always check with the local municipality where you’re building.
Why now is the time to build in Oklahoma
With demand rising and land still relatively affordable, Oklahoma gives investors a clear path to profitable ground-up opportunities. The key is fast, flexible funding—exactly what Park Place Finance provides.
The combination of accessible markets, transparent permitting, and multiple exit strategies makes Oklahoma one of the best ground-up markets in the U.S. today.
If you’re ready to build in OKC, Tulsa, or emerging markets like Edmond or Shawnee, don’t wait. Get your budget and site plan in order—and start funding your next project.