Utah’s strong real estate market has plenty of opportunity for investors looking to grow their portfolio. The state’s growing reputation as a tech hub is contributing to a bright future, and its best days are far from over. Find the best real estate markets in Utah and start growing your assets.
Utah has claimed the top spot for the fastest population growth for this decade, which in turn has piqued the interest of real estate investors. A high birth rate and a strong economy have contributed to adding nearly 400,000 people in the past ten years for a 14.4% growth rate.
This success could be a golden opportunity for investors who focus on the right cities and neighborhoods. Take a look at the top five real estate investment markets in Utah and why they seem promising for profit-craving investors.
Ogden is a picture-perfect postcard town, which is enough in itself to attract growth opportunities. But its highly rated school system, low unemployment rate, and reputation as an economic hub have also contributed to making this one of the most desirable places to live in Utah. It provides a well-crafted balance of outdoor activities with big business and education, catering to a diverse population.
Ogden’s housing market isn’t quite as hot as some of the other cities in Utah, but it’s every bit as promising.
Home values have risen 20% in the past year, and are expected to rise another 12.5% in the next year. But even more attractive to investors are the list prices themselves, which are significantly lower than other desirable Utah cities. The median list price in Ogden is $225,000, compared to Salt Lake City’s $420,000 and Provo’s $299,900. Bottom line: the interest in the market is high and prices are lower, giving real estate investors every reason to explore this opportunity.
Provo has earned mentions in countless news stories and reports regarding its diverse job market, a strong economy, an unemployment rate of just 2.4%, and opportunities for real estate investors. It’s the definition of Boomtown, giving residents and investors alike every reason to feel confident about its future.
Home values have skyrocketed 17.4% in just the past year, and they’re expected to soar another 10.6% in the coming year. In addition, nearly 60% of the residents in Provo rent their homes or apartments, which is more good news for investors interested in multi-family residences. Rent averages between $1,025 and $1,352 per month, with data showing a steady increase in rent prices since 2016.
Salt Lake City
Salt Lake City is Utah’s most populous city and is poised for a 4% population increase over the next three years. The metro’s healthy economy can be attributed to its 3% unemployment rate and growing reputation as a tech hub, along with top-rated industries like healthcare, travel and hospitality, education, and finance.
The housing market in Salt Lake City isn’t quite as hot as other cities in the state, which is good news for investors looking for a bargain. Home values have increased by nearly 16% in the past year alone and are expected to increase another 7.9% in the next year. Investors may want to look at areas within the Salt Lake City metro, as home prices are significantly less per square foot compared to homes within the city.
Looking at growth potential alone, St. George is a clear frontrunner. Data predicts that St George will have a 9% population increase in the next three years, which automatically increases the demand for housing. The job growth rate is also expected to surpass other major Utah cities, clocking in at 5.4%.
Still, St. George’s median home value of $308,000 remains below that of Salt Lake City and Ogden. Home values have increased an average of 13.9% in the last year alone and are expected to continue climbing another 8.6% within the next year, giving investors every reason to get excited.
Draper is a well-established town that has nearly run out of growth potential, but that’s about to change. Since the state’s decision to relocate its prison to an area north of Salt Lake City, the town will soon free up nearly 700 acres, and the city is eager to capitalize on residential opportunities with its windfall.
Draper’s real estate market is hot, with home values having increased by 7.7% in the last year and are expected to increase another 4.8% within the next year. The median rent price is $1,800, which is higher than Salt Lake City Metro's median rent of $1,575.
And given the potential population and economic growth the new acreage and developments will bring, investors will want to keep their finger on the trigger.
How to Choose the Best Real Estate Investment Market in Utah
Utah’s best years aren’t over. Unlike the boom-and-bust markets in Florida or oil country, the very things that contribute to Utah’s economy and growth will last for decades. Real estate investors interested in growing their footprint in the Beehive State can still expect profitable opportunities in the right markets.
Investors can strengthen their Utah real estate investment strategy by partnering with an experienced local real estate agent for guidance and support when breaking into the market. Your agent can provide deep-level insight on market conditions that will help you scale your portfolio for a profitable venture.
Connect with a Clever Partner Agent today and discover the investment opportunities waiting for you in Utah!