The Utah housing market is on the rise, and this vibrant economy is giving no indication of slowing down any time soon. Utah is currently one of the U.S. states with a rapidly growing population. And Utah is fast becoming a door to new opportunities for its residents and visitors.
With relatively low taxes and a welcoming environment with beautiful views, Utah is one of the most attractive places to settle down. It has a population of over 3.3 million people, and its annual population growth rate is reaching 2% per year, an impressive feat on all fronts. Additionally, its growing population has increased the number of people looking for a place to call home in the state.
Residential real estate investors have experienced an increase in the number of stable renters. Therefore, Utah is currently a great location to purchase a rental property.
The other side of Utah’s strong economy is that investors could struggle with finding an affordable property. It may become difficult to gain access to properties like investment apartments due to the increased competition in the real estate market. As property prices rise, landlords are more likely to pay high prices for real estate. However, as rental rates are taking their time before leveling up to the increase in property values, investors could start to face a cash flow problem, especially those who don’t have strong reserves.
If you’re looking to buy property in places like Provo, Salt Lake City, or Logan, it’s critical to find a real estate agent to help you discover the right property. Logan Utah Realtors are experts in their field and have agents from the best brokerages.
You can rest easy when you begin working with Utah Realtors, as you are presented with the opportunity to interact with many agents before you find the best fit that will work with you on your investments.
Several cities in Utah provide excellent opportunities for investment. Let’s take a look at each of them.
1. Provo
Provo has grown from the small, developing city it once was to become the leader of the pack in Utah. In the Milken Institute’s Best Performing Large Cities ranking of U.S. cities in 2020, Provo came out on top, beating popular cities like San Jose and Seattle—an impressive feat on all fronts. Provo’s vast investment opportunities and sizable wages are a big part of its growth. These encourage an influx of talent into the city.
In addition, Provo boasts of a large student population, which necessitates the presence of affordable rental properties. There are over 75,000 students enrolled at the two biggest universities in the Provo area; Brigham Young University and Utah Valley University.
It also helps that big tech organizations like Adobe and Oracle tap from the vast population of graduates coming out of these large universities yearly. As a result, Utah has better jobs and more financial and economic growth opportunities. This directly affects the increased need for rental housing.
Utah County currently boasts over 200,000 housing units, with a large percentage of these in Provo. Provo’s rental rates range from $920 to $1,695 for a studio apartment or a four-bedroom home, respectively.
The value of property in the county is also growing rapidly as the average value of homes in Utah has grown from $217,000 to over $490,000 since 2015. The city experienced a 27% increase in the past year. Property investors in Provo may not experience immediate cash flow in this county given the high price of purchasing property; however, Provo provides the potential for an excellent source of rental income over time.
2. Salt Lake City
Also on the Milken Institute’s list, Salt Lake sits at a comfortable #3. Like its counterpart, Provo, Salt Lake has experienced a significant increase in population and job availability. Its robust economic climate is just one of many factors contributing to its popularity. The city has effortless access to recreational opportunities outdoors. Park City offers a chance for both visitors and residents to enjoy skiing and luxury at the fanciest hotels. Residents of Salt Lake can also enjoy quiet strolls outdoors.
Utah’s capital is Salt Lake City. As the capital, it offers over 400,000 housing units in the area. One-bedroom apartments go for about $1,199 per month, while the 5+ bedrooms have an average monthly rent of $2,672.
The value of properties in Salt Lake may very well continue to rise as more people move into the city. Its strong economic growth attracts many tourists and residents looking for a place to settle down.
3. West Jordan
West Jordan is one of the suburbs in Salt Lake City and is the perfect combination of urban and suburban life. With the Jordan River Parkway trail running through the city, residents have an excellent opportunity for walking and biking.
The rental rates in West Jordan start from $1,032 to $2,735 for studio apartments and 5+ bedroom homes, respectively. As rental rates and home price spikes align, the rental rates in West Jordan may soon increase. There is every indication that West Jordan will soon enjoy even better rental rates, as it has attained outstanding price appreciation in the past year.
4. West Valley City
Wear Valley City is another popular suburb of Salt Lake City. Its huge venues are perfect for both sports fans and concertgoers. With the Maverick Center located right in the middle of West Valley, the city has been home to several huge events, such as the 2002 Winter Olympic ice hockey games. Additionally, easy access to I-80 in West Valley City can be taken to get outside to the Bonneville Salt Flats.
West Valley City has seen a huge sore in property values since 2015. They have grown from an average value of $196,000 to a $474,000 average in the past seven years. This has created a significant increase in monthly rental prices for Utah. The rent range in West Valley City is from $1,100 to $2,560 for one-bedroom apartments and 5-bedroom apartments.
5. Orem
Orem has a large student population and a fast-growing tech community, just like its neighbor, Provo. Utah Valley University is situated along the freeway, making it a popular location for off-campus students who live within the city. Apart from students, Orem is also a choice housing location for families looking for housing.
Orem is the host of the yearly Timpanogos Storytelling Festival, a fun event that brings many storytellers, artists, musicians, and magicians to the beautiful parks on the Provo campus.
Investors will greatly benefit from the continued growth of Orem’s properties as there is a huge demand for housing by both students and families. The rental rates for a one-bedroom apartment and a five-bedroom apartment range from $1,212 to $2,230, respectively.
What Next for Your Rental Property Investment
From Provo to West Jordan, you have an amazing opportunity to invest in incredible locations for real estate.
Before you make an investment decision in Utah, research and interview real estate agents. A great agent will make it easier for you to find the best rental properties to invest in and begin your investment journey.
