Why Invest in Utah Real Estate?
It's no secret that Utah has experienced a strong economic and in-migration growth over the past years. The state has recorded the highest population growth rate (9%) in the United States, which is considerably higher than the national average (0.7%). This, however, led to a 25% increase in home prices over the past three years.
The technology and business development sectors are booming in Utah, and aerospace, renewable resources, IT, health technology, sporting goods, natural products, as well as tourism industries are expanding, attracting renowned companies and new start-ups to the area, resulting in economic growth.
Nestled in the West's beauty, Utah boasts of ski slopes, mountains, picturesque cities (Salt Lake City, West Valley City, Provo, West Jordan), tasty food, access to top-notch healthcare, and a fascinating cultural scene that translate into active home buyers and renters flocking to the state.
Taking these aspects into consideration, Utah is a place where real estate investors can purchase single-family homes and enjoy a steady stream of yearly income together with continuously growing profits.
Investment Considerations for Utah Real Estate
There are a number of factors to consider, including:
- Job growth - Utah is an attractive place both for companies and Millennials, thus jobs are increasing at a nice rate and this goes along great with the high population growth rate and low unemployment rate. eBay, Novell, Vivint Solar, Adobe, EA Sports, and Omniture are just a few of the organizations that are either headquartered in Utah or have key offices here. So, as the state is an important player in the job growth scene, real estate investors will be able to choose from numerous employed buyers and tenants who can afford to pay rent on time.
- High rental demand - Utah is home to multiple companies as well as renowned universities and colleges such as University of Utah, Brigham Young University, Utah Valley University, and Westminster College. Thus, the state has a great population of recent graduates and professionals. And, as population, employment, and the economy grow, so does the rental demand. Hence, real estate investors in Utah will easily find buyers and renters for their properties.
- Popularity as a living destination - With awesome ski slopes, beautiful nature, employment ops, high-quality healthcare facilities, and an exceptional overall quality of living, Utah is home to over 3 million people and the number is continuously going up. People choose the state as a living destination thanks to companies such as eBay, Adobe, and EA Sports offering jobs, universities such as the University of Utah offering top education programmes, and leisure ops such as Zion National Park and Bryce Canyon National Park. All of these translate into low vacancy rates, which is amazing news for real estate investors who own rental properties and are looking for year-round consistent incomes.
- Tech hub - Home to the Silicon Slopes, Utah is a state where numerous tech companies choose to set root. Both start-ups and well-known businesses like Amazon are making the area a breeding ground for new technological growth. This also attracts young professionals who are looking for steady employment and career-expanding opportunities. The rapidly growing tech scene is a key ingredient of profitable real estate investment. Investors can enjoy cash flow from renting out properties to newly arrived tenants in cities like Salt Lake City, Provo, and Ogden.
What are the Best Markets to Invest in Utah
The tech market is rapidly growing in Utah. The top tech scenes in the state are located along the Silicon Slopes, and especially in Salt Lake City, Provo, and Odgen. With an increasing number of tenants drawn to these areas, it can be a wise move for real estate investors to consider purchasing single-family homes in these cities. Tourism is also a solid market in the state, particularly in Springdale, Capitol Reef, and the Moab area, which are the main destinations.
Utah is the fastest growing state in the United States regarding population. Besides that, the area enjoys a strong economic, employment, leisure ops and tourism growth which goes hand in hand with the continuously increasing rent demands. Thus, Utah offers numerous opportunities for real estate investors to own single-family homes. Both long- and short-term prospects in terms of cash flow and profit are very good.
INVESTimate® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Utah; and across the United States and calculate home values RENTestimate for every property in Utah. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.