For the last five years or so, the Utah real estate market has seen positive economic growth as well as strong in-migration. People are moving steadily into the region, increasing the state’s population. In fact, Utah’s population grew by a whopping 9 percent, which was the highest rate throughout the country. This growth is putting upward pressure on Utah’s housing markets. Current housing trends in Utah include an increase in prices. During the last three years, the cost of a purchasing a home in the state rose by 25 percent.
Current Housing Trends in Utah
Conditions and the Forecast
In Salt Lake City, the median home value is around $370,000. Over the last year, the city’s values have gone up by about 15 percent. According to predictions, the values will rise by an additional 4.4 percent in the next year. If you break it down into square foot, then the price per square foot in Salt Lake City is $318. This is higher than the average in the Salt Lake City Metro area, which is around $203. The median cost of Salt Lake City homes is at $415,000. The nice thing about Salt Lake – at least from an investment standpoint – is that the delinquent mortgage percentage is just 0.6%. This is much lower than the national delinquency rate of 1.6 %.
Is Utah a Good Place to Invest?
Can investors still do well in the Utah market? While we always recommend caution when it comes to investing, keep in mind that the Utah market isn’t like the small boom-and-bust ones that often happen in Florida or in shale-oil country. The economic conditions that make Utah a good place to invest will be around for years. This makes investing a little less scary since you don’t have to time your entry and exit perfectly. That said, we recommend that you continue to be careful when investing because real estate is always cycling. Rapid demand changes for housing will impact markets regardless of what else is going on in the state.
Current Housing Trends in Utah Point to the Smaller Markets
Statistics show that in Utah, the strongest growth is currently happening in smaller areas. It’s not happening in the state’s smallest areas but in places like Clearfield and Provo. These regions also have solid job growth, adding to their investment appeal.
The Best Opportunities May Be in Utah County
With the current housing trends in Utah leaning toward the smaller markets, Provo may be the best investment area. Good population growth, a stable job market and homes that remain affordable make the area attractive. The long-term forecast looks good. Happy investing! To learn more, visit Presidio Real Estate.