A Quick Guide to the Salt Lake City Real Estate Market

Are you thinking about purchasing property in Salt Lake City? Here's what you need to know about the Salt Lake City real estate market.

According to statistics published by Realtor.com, the US real estate landscape will remain a seller's market for the foreseeable future. The summer saw a decline in sales as the market started to normalize and interest rates soared, yet home prices are holding firm across the country. 

Does this mean, prospective buyers should hold back on buying a property they love? It depends on where you're looking to invest.

Here's your guide to Salt Lake City real estate and why it's a great place to purchase property, despite the current seller's market.

Promising Growth

The Salt Lake City area is currently experiencing rapid growth, with forecasters predicting that Salt Lake County will reach 4 million inhabitants within the next ten years. 

The major drivers for those moving to this area include a strong local economy, low unemployment, and great access to natural attractions. 

Salt Lake City's unemployment rate remains low even as more job seekers enter the market. Major employers in the city include:

• Zion's Bancorporation 
• Intermountain Healthcare 
• ServiceNow 
• EPAM Systems 
• Resource Management

"Silicon Slopes'' in the Salt Lake City metropolis boasts a thriving tech scene, with industry front-runners like Adobe, Quickbase, Clearlink, and Atomic based in this area.

A Young Population

As a burgeoning tech hub, Salt Lake City attracts many college graduates looking for employment. Thanks to this, the city has a large population of residents between 25 and 34 years old. 

Most of these young professionals prefer to rent their accommodation until they choose to settle down. Currently, renters occupy about 52% of homes in Salt Lake City.

It's unlikely you'll ever encounter a shortage of tenants when you buy a Salt Lake City investment property.

High Rental Rates

Across the US, housing shortages coupled with growing demand are driving rental prices up. In Salt Lake City, rents escalated by around 12.4% when compared with the same time last year.

The last time rent went down in Salt Lake City was in October 2020. 

High rents combined with plenty of young, upwardly mobile professionals looking for rentals make Salt Lake City an excellent choice for those interested in real estate investing. 

Good Ratio of Demand vs Supply

Rising interest rates are causing a slowdown in home sales, and Salt Lake City experienced a 110% increase in inventory during 2022.

Despite this rapid increase in available houses for sale, the city is still chronically short of inventory to meet the ever-increasing numbers of buyers. This chronic shortage of housing is a major driver of consistent price increases in the city. 

Salt Lake City Real Estate Offers Excellent Value

Considering the above insights, it makes sense to buy real estate in Salt Lake City sooner rather than later. The average home price in Salt Lake City is still 10% higher than in 2021.

Escalating values, abundant demand for rentals, and high rental rates all make Salt Lake City real estate an excellent investment choice for astute buyers.

Browse Susie Martindale Group selection of luxury properties and get in touch if you'd like assistance finding your dream home, or expanding your investment portfolio.