Salt Lake City Investment Property for Sale - 2023 Rental Home Appreciation
The Salt Lake City housing market is one of the hottest markets in the U.S. It's ranked at the top of several reputable lists. The most notable is from Realtor and PwC.
Salt Lake City, Utah (SLC) is listed as Realtor's top real estate market to watch in 2022. The reason? A combined sales and price growth of 23.7%.
SLC is also listed in PwC's Emerging Trends in Real Estate 2022 report. Salt Lake City made the list as a magnet market because it's a migration destination for people and businesses. People and businesses are attracted to the city because of its development and quality of life.
In addition to being a top real estate market for sales, growth, and migration, Salt Lake City is also a buyer's market with affordable home prices. According to Realtor, the median listing price for a home in Salt Lake City, Utah, is $318 per square foot, and the median sales price is $549,000.
Savvy real estate investors should act quickly if they want to add a Salt Lake City rental property to their portfolio.
Salt Lake City's Attractive Housing Market
The Utah real estate market is home to the Wasatch Front, which includes several attractive housing markets in or near the Salt Lake City metropolitan area.
Some of the best neighborhoods in and suburbs of Salt Lake City include Cottonwood Heights, Draper, Millcreek, Ogden, and Provo.
- Cottonwood Heights - Cottonwood Heights is located in east Salt Lake City Valley along the Wasatch Mountains. It's a suburban neighborhood with many parks that attract families and young professionals. The median listing price in Cottonwood Heights is $289/sqft, and the median sales price is $775,000. The median rent is $2,560/month.
- Draper - Draper is located in south Salt Lake between the Wasatch Mountains and I-15. It's a suburban neighborhood with many golf courses, parks, and hiking trails. Draper attracts families and young professionals who enjoy the small-town feel and easy commute to Salt Lake City. The median listing price in Draper is $256/sqft, and the median sales price is $821,000. The median rent is $2,600/month.
- Millcreek - Millcreek is located at the base of the Wasatch Mountains between South Salt Lake and Midvale. Millcreek is a small city with many shops, restaurants, and parks. It attracts families and young professionals. The median listing price in Millcreek is $306/sqft, and the median sales price is $599,900. The median rent is $2,500/month.
- Ogden - Ogden is part of the Wasatch Front and is located north of Salt Lake City in Weber County. Property taxes are lower in Weber County than in Salt Lake County. Ogden offers everything outdoor enthusiasts want - hiking, skiing, and fishing. It also has a funky and historic downtown area that attracts people of all ages. Home prices and rent in Ogden are also more affordable than in Salt Lake City. The median listing price in Ogden is $220/sqft, and the median sales price is $380,000. The median rent is $1,350/month.
- Provo - Provo is part of the Wasatch Front and is located south of Salt Lake City, between Orem and Springville. Like Ogden, home prices and rent are more affordable in Provo than Salt Lake City. Provo is the 3rd largest city in Utah, with easy access to national parks and Utah's southern canyons. The median listing price in Provo is $267/sqft, and the median sale price is $428,000. The median rent is $1,450/month.
Rental Home Appreciation in Salt Lake City
There's more to Utah's real estate market than luxury mountain villas in Park City. A lot more.
The Utah real estate market has been listed as a top market because of job growth, low unemployment rates, low taxes, and home value appreciation. Most of Utah's development is in the Salt Lake City metropolitan area. And it's reflected in Salt Lake City's real estate market.
According to Neighborhood Scout, Salt Lake City has experienced an average annual appreciation rate of 5.84% since 2000. The city also has a strong renters' market, with over 50% of households occupied by renters and a vacancy rate of around 7%.
Salt Lake City's housing market is a great investment opportunity whether you're considering investing in single-family homes or multi-family housing. Property owners and real estate investors have tremendous potential to earn rental income and increase their cash flow.
Economic Growth in Salt Lake City
For the last decade, Utah has been the fastest-growing state in the U.S. It's a popular migration destination for people and businesses looking to escape high-tax states like California. Most of Utah's migration has been to the Salt Lake City metropolitan area.
Salt Lake City's largest industries are trade, transportation, technology, utilities, and healthcare.
Adobe Systems, 3M Health Information Systems, and Microsoft recently opened offices in Salt Lake City. As a result, SLC has a projected job growth rate of 39.9% over the next ten years.
Salt Lake City's current unemployment rate is just 3%, half of the U.S. average, and the cost of living is 6% lower than the national average.
A solid job growth rate, low unemployment rate, and low cost of living will continue to attract people and businesses to the Salt Lake City metropolitan area for years to come.
Want to invest in a Salt Lake City rental property? Sign up with Arrived to discover how we make real estate investment easy and affordable.