Real estate investors tend to want to invest in larger cities for good reason. Larger markets have more buyers; this more easily ensures selling an investment property. However, the US housing market trends have changed over the past few years. Investors are starting to look at smaller markets, such as Salt Lake City, and shift their investments here. According to mashvisor.com, Salt Lake City was ranked third in the Cities for the Best Real Estate Investments for 2018, behind Seattle and Austin.
So, what is so appealing about Salt Lake City?
For being one of the largest real estate markets in Utah, Salt Lake City still has affordable housing. We have a housing affordability index of 139.0. Now, in case you are newer to the real estate market, the housing affordability index measures an area’s median household income relative to the income needed to purchase a median-priced home in the area.
If the ratio falls below 100, it means that the average household has less income than necessary to buy a median priced home. Salt Lake City currently has a HAI of 139, which means that the median household income is 39% higher than necessary to qualify for a median priced home in Salt Lake City.
Our real estate market has recently shifted from a seller’s marker to a buyer’s market.
If you are looking to invest in a home and resell it quickly, the best way to make great returns is to invest in entry level, single family homes or multifamily homes. The low-priced inventory is relatively low in available property inventory, making it easier to sell quickly. There is always a need for entry level homes due to their affordability.
Salt Lake City has a high percentage of millennials.
“30% of the population of Salt Lake City is between the ages of 15-34. US housing market predictions show that 43% of homebuyers that will be using mortgages to buy an investment property will be millennials.” Due to this trend, investors will easily resell entry level properties in the Salt Lake City area.
If you’re looking to get into the real estate investment market in the Salt Lake City area, contact us! We’d love to give you some local tips and tricks and assist in your financial aspect of your investment.
Shalhout, Sylvia. [January 18,2018]. US Housing Market Predictions: Salt Lake City Real Estate Market Is Looking Hot for 2018! [Blog] Retrieved from https://www.mashvisor.com/blog/salt-lake-city-real-estate/