Utah Housing Market: Should You Invest Here? Where?

Are you wondering where to invest in real estate for the last quarter of 2019 and the beginning of 2020? If so, then you should definitely consider a location in the Utah housing market!

How is the Utah real estate market performing in 2019? What are the best cities in Utah for real estate investments? And what are some of the Utah real estate trends to take note of before investing here? Keep reading to get these important questions answered!

Related: 10 Best Places to Invest in Real Estate in 2019

Utah Housing Market: State-Level Data

First thing’s first, how is the Utah housing market performing? The best way to answer this question is to use data from a rental property calculator. Here is the data of the state’s market, according to Mashvisor’s investment property calculator (which you can learn more about by clicking here).

Pricing

• Median Property Price: $462,588
• Price per Square Foot: $770
• Price-to-Rent Ratio: 25

Traditional Investing

• Rental Income: $1,557
• Cap Rate / Cash on Cash Return: 1.2%

Airbnb Investing

• Rental Income: $2,404
• Cap Rate / Cash on Cash Return: 2.4%
• Occupancy Rate: 54.3%

Best Cities in Utah for Traditional Real Estate Investing

Real estate investors might be familiar with the success of Salt Lake City real estate, but there are plenty of other cities with profitable Utah investment properties. According to Mashvisor’s investment property calculator, the best cities in the Utah housing market for traditional rental properties are Duck Creek Village, Eagle Mountain, and Park City.

Duck Creek Village

Pricing

• Median Property Price: $349,326
• Price per Square Foot: $190
• Price-to-Rent Ratio: 25

Traditional Investing

• Rental Income: $1,163
• Cap Rate / Cash on Cash Return: 3.0%

Eagle Mountain

Pricing

• Median Property Price: $366,336
• Price per Square Foot: $122
• Price-to-Rent Ratio: 15

Traditional Investing

• Rental Income: $2,022
• Cap Rate / Cash on Cash Return: 2.8%

Park City

Pricing

• Median Property Price: $1,163,330
• Price per Square Foot: $568
• Price-to-Rent Ratio: 32

Traditional Investing

• Rental Income: $3,008
• Cap Rate / Cash on Cash Return: 2.6%

Best Cities in Utah for Airbnb Real Estate Investing

What if you want to invest in Utah real estate for Airbnb? In that case, the best cities for Airbnb in Utah are Ogden, Sandy, and Washington.

Ogden

Pricing

• Median Property Price: $249,201
• Price per Square Foot: $138
• Price-to-Rent Ratio: 19

Airbnb Investing

• Rental Income: $2,186
• Cap Rate / Cash on Cash Return: 4.8%
• Occupancy Rate: 56.6%

Sandy

Pricing

• Median Property Price: $512,064
• Price per Square Foot: $189
• Price-to-Rent Ratio: 24

Airbnb Investing

• Rental Income: $2,751
• Cap Rate / Cash on Cash Return: 2.9%
• Occupancy Rate: 64.3%

Washington

Pricing

• Median Property Price: $395,511
• Price per Square Foot: $184
• Price-to-Rent Ratio: 23

Airbnb Investing

• Rental Income: $2,356
• Cap Rate / Cash on Cash Return: 2.5%
• Occupancy Rate: 46.6%

Why You Should Invest in the Utah Housing Market

Why should a real estate investor consider buying a house in Utah? Aside from the obvious rental income profitability, there are 5 Utah real estate trends to know. These have to do with Utah house prices, appreciation, demand, economy, and Airbnb regulations.

• Relatively Affordable Property Prices in the Top Cities

One of the most defining features of a rental market is its property prices. The median property price of the Utah housing market, as seen in the previously mentioned data, is $462,588. Although this is higher than the national median of $312,800, many of the best cities in Utah have median prices that are below the state median. These cities include Eagle Mountain, Duck Creek Village, Ogden, and Washington. These four cities also have Utah house prices that are below $400,000. The other two of the state’s top cities, Park City and Sandy, are above the state’s median.

• High Real Estate Appreciation

Positive cash flow is not the only way Utah investment properties generate profitability. Real estate appreciation, or an increase in property value over time, is another major form of profit. This is particularly true in the Utah housing market. According to NeighborhoodScout, many cities in the Utah real estate market are among the nation’s top-tier cities for appreciation. These cities are among the top 10 to 20 percent for national appreciation.

During the last 12 months, the most notable appreciation rates in Utah have been in Park City (6.28%), Eagle Mountain (10.37%), Ogden (11.64%), and Sandy (8.32%). As it pertains to the Utah real estate market forecast for 2019 and 2020, these cities are projected to maintain high appreciation rates.

Related: 5 Best Cities for Real Estate Appreciation 2020

• High Rental Property Demand

Arguably the most significant of the current real estate trends of the Utah housing market and the upcoming Utah housing market 2020, is the city’s high demand for rental properties. Park City, for example, is the 7^th best place to live in Utah, 4^th best place for public schools, and has 40% of its residents living in Utah rentals. Eagle Mountain is also well-known for its long-term family tenant success, as it is the 14^th best suburb with the best public schools in the state. Many of the best cities in Utah are also considered a buyer’s market. According to Zillow, the best buyer’s markets in Utah are in Park City, Eagle Mountain, Sandy, and Washington.

Related: The 2019 US Housing Market: A Seller’s Market or Buyer’s Market?

• Strong Economy

When it comes to traditional Utah investment properties, a strong economy bolsters their performance. This is especially true in Eagle Mountain. Utah’s unemployment rate is 2.8 percent, which is lower than the US average of 3.9 percent. Eagle Mountain’s unemployment rate is slightly below the state average at 2.7 percent. Job market growth is another theme of the Utah housing market, and Eagle Mountain perfectly embodies it. The projected job growth in the city over the next ten years is 60.3%, which is much higher than the US average of 33.5%. Be sure to learn about the job market in whichever Utah city you wish to invest in, as it is a vital influencer for Utah homes for sale.

• Airbnb Regulations

The Utah housing market is also excellent for short-term rentals, particularly Airbnb. While some cities, like Washington, do not have any official Airbnb regulations, many others do. Ogden, for instance, requires hosts to obtain a Residential Vacation Rental permit and a rooming home business license. Sandy also requires investors to obtain a short-term rental special use permit and a short-term rental license. Both cities also require Airbnb hosts to pay a Utah State Transient Room Tax of 0.32 percent, State Sales Tax of 4.7%, and other taxes which you can learn about on Airbnb’s Help page.

All in all, the Utah housing market is among the top US markets in 2019. In 2020, Utah housing market predictions will likely follow the real estate trends mentioned in this blog. To start searching for Utah homes for sale, click here to start your 14-day FREE trial with Mashvisor!