Driven by historically low interest rates and low unemployment rates, the pandemic has provided impetus to Utah’s real estate market. According to data from Bankrate.com, Utah’s housing market is ranked as the nation’s largest housing market due to its fastest employment growth rate, low unemployment rate, low mortgage interest rates, low mortgage delinquency rates, and low state and local taxes. The continued low mortgage interest rates and the steady recovery after the pandemic indicate that the Utah real estate market may set another record in 2021. The same is true for the real estate market in Salt Lake County.

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Rapid Population Growth

A high graduation rate and a large number of college graduates, the city will have a workforce that is attractive to many large companies. Utah’s population has grown by 9% in the past five years, most of which are concentrated in Salt Lake City, and the median house price at the end of 2020 is $399,500 (still significantly lower than the Denver average).

Moreover, a large number of Californians have moved to Utah, putting additional pressure on the supply side. The number of immigrants to the Salt Lake City metropolitan area is still at the highest level in history. The problem is that the demand is so strong that the inventory cannot reach the level that indicates sufficient supply. According to local real estate agents, people also come from New York, Boston, Vermont, Austin, Texas and other cities. They also believe that first-time homebuyers in Utah will be turned away by people who move in from other states.

Rapid Employment Growth

The employment situation in Utah is one of the most impressive in the United States. In the past ten years, it has the fastest growing job market in the country. The population of Utah has increased by 18.4% in the past ten years, making it the fastest growing state. According to the US Census Bureau, it is now the 30th most populous state with a population of nearly 3.28 million. The economy in the Salt Lake City area is performing well, and it has one of the lowest unemployment rates in the United States, with only 3.5% of the ringtones in December 2020. During the pandemic, Utah’s job prospects will continue to outperform the rest of the country in December. . The unemployment rate in Utah is 3.3%, which is much lower than the national rate of 6.5%.

Growing Salt Lake City Rental Market

The housing market in Salt Lake City cannot keep up with demand, which has prompted many millennials and new residents to enter the rental market. Although many people want to own their own homes, affordability is an issue for young people who want to become homeowners. The average annual income of millennials is US$68,000, while the median house price is US$400,000. This explains why rents in Salt Lake City are growing the fastest in the country.

As of August 8, 2021, the average rent for a one-bedroom apartment in Salt Lake City is currently $1,150. This is an increase of 16% compared to the previous year. In the past month, the average rent for a studio apartment in Salt Lake City has risen by 5% to $1,045. The average rent for a one-bedroom apartment rose 5% to US$1,150, and the average rent for a two-bedroom apartment rose 7% to US$1,395.

  • The average rent for a two-bedroom apartment was $1,395 (8% increase from the same period last year).
  • The average rent for a three-bedroom apartment was $1,865 (a 4% increase from the same period last year).
  • The average rent for a four-bedroom apartment was $2,563 (a 22% increase from the same period last year).

The Zumper Salt Lake City Metro Area Report analyzes the active listings in 7 metro cities in June 2021 to show the most expensive and cheapest cities and the cities with the fastest rent growth. The median one-bedroom rent in Utah last month was $1,047. Salt Lake City is the most expensive city, with a one-bedroom price of US$1,100, while Provo is the most affordable market with a rent of US$800.