Utah has consistently ranked among the fastest-growing states in the nation for many years. Its economy is growing thanks to a vibrant tech industry, strong employment, business development, and government. Let’s take a look at some factors that are helping the Utah real estate economy.
1. Population Growth
Utah’s population has continuously remained one of the fastest-growing in the US. The state’s population is up by 16 percent between 2010 and 2019, according to the US. Census Bureau. It ranked 4th among the fastest population growth between 2018 and 2019.
The 442,067 difference in growth is roughly the equivalent of West Valley City, Salt Lake City, and Provo’s combined populations.
As the biggest city in Utah, Salt Lake City currently has a population of 213,367 (2020). The city’s population is growing at an annual rate of 3.09 percent, and since 2010, it has increased by 14.44 percent. Back in 2010, the census recorded a population of 186,440 for Salt Lake City.
2. Sizable Investments from Tech Companies
Utah has a strong economy. The state’s government has aggressively reached out to major corporations like Adobe to lure them to Utah. The state is also close to other Western tech centers, has a large growing talent workforce, and affordable real estate costs.
All of that helped spur the development of Silicon Slopes, a Utah startup hub and tech community in Salt Lake City. Salt Lake is also home to the University of Utah Research Park (aka Bionic Valley), an epicenter for bioengineering.
3. Home Values
According to Zillow, Utah’s home values have risen by 9.9% over the past year, and they predict it’ll increase by 8.5 percent in 2021.
One area to watch is Salt Lake City, where home values have gone up by 9.4 percent. Zillow predicts they’ll rise by 8 percent in 2021, and when past decade performance is considered, homes have risen in value consistently.
With the growing population, more housing and office-space development will be needed to catch up with demand – making Utah real estate attractive to investors and home buyers. Anyone that’s looking for a real estate market with high ROI (return on investment) potential should consider Salt Lake City.
“Salt Lake City, Utah offers a diverse range of neighborhoods to suit any budget and preference. Whether you want a small starter home or a sprawling mansion, a home close to the ski hills, or a short commute, Salt Lake City has it all.” – Harvest Park Group.
4. Unemployment Rate
Utah’s strong job market has largely contributed to the increase in home values. Despite the coronavirus pandemic, the state’s unemployment rate is 5 percent – way below the nation’s, which is at 7.9 percent. The current unemployment rate of Salt Lake City is at 4.20 percent, and before the pandemic, it was 2.10 percent the previous year.
The July 2020 employment numbers released by the US Bureau of Labor Statistics ranked Utah No. 2 for total job growth in the nation (at -1.8 percent). It also ranked No. 2 for job growth in the private sector (at -2.3 percent). For unemployment, it was ranked No. 1 (at 4.5 percent).
Utah’s growing economy and substantial employment attract people who want good jobs, which drives up housing demand. As a result, more residences have been built in Salt Lake City and Utah in general than ever before.