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Utilities costs are a part of both renting and owning a home or apartment. Most Salt Lake City residents spend an average of $131 a month on utilities as a renter. Similarly,Cincinnati, OH is another great market to get started in real estate investing. Cincinnati's real estate market is on the upswing and looking strong for the foreseeable future. It provides many opportunities to investors, regardless of the market you want to invest in. Analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents.
In addition to low interest rates, Salt Lake City’s unemployment rate appears to have been more resilient than most cities across the country. Now less than half of where it peaked in April, local unemployment looks poised to support the housing sector. As a result, not only are more people able to buy in Salt Lake City, subsequent interest rates make the prospect of owning that much more attractive. The condo market saw sales prices rise 15.54% to $355,000 on the back of declining sales which were down a whopping 36.20%.
Salt Lake City Market Is Everything Which California Isn’t
The strength of the overall economy significantly impacts the real estate market as buyers' ability to support housing prices largely depends on key economic factors. In 2021, the median price of homes sold in Salt Lake County increased by 22% from $378,250 in 2020. In December, prices were up 24%, just slightly below the largest gain of 27% in June and there’s no sign yet of a slowdown. The board predicts home prices will continue to climb between 10-12% in 2022.
Meanwhile, the population continued to grow, but the number of owner-occupied housing units lagged behind trends. While the population continued to increase, owner-occupied homes remained low. As a result, real estate in Salt Lake City largely benefited from passive income investors. At this time last year , the median home value in the Salt Lake City housing market sat somewhere around $440,000. However, having benefited from an appreciation rate that exceeds the national average, the median home value in the Salt Lake City real estate market has reached $538,601; that’s a 23.3% increase. To put the last year into perspective, the median home value in the United States is now $298,933 after appreciating by as much as 16.7% in one year.
Market Overview
If you consider the move to Salt Lake City, remember how much amazing and free entertainment is available. Yes, Salt Lake City is safe and has a rate of 73 crimes for every 1,000 residents. You are more likely to be a victim in Salt Lake City than in the rest of Utah, however. Only 1 out of 429 residents suffer a violent crime in Utah, and 1 out of 132 in Salt Lake City. A condo in Salt Lake can cost as little as $230,000, and up to $250,000 or more, depending on size. So what makes Salt Lake City Downtown so appealing to home buyers and investors?
In the last year alone, there has been a 3% rent increase, but luckily, prices vary between neighborhoods. Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property. His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate. He’s also the host of the top-rated podcast – Passive Real Estate Investing. Like the Salt Lake City real estate market, the other housing market to go for to diversify your investments is theBaltimore real estate market. The Baltimore real estate market has been in decline for years, but several spots offer significant returns.
Salt Lake County 2019 Annual Median Home Prices
The average size for a Salt Lake City, UT apartment is 834 square feet, but this number varies greatly depending on unit type, with cheap and luxury alternatives for houses and apartments alike. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer a more generous square footage. The average cost of car insurance in the state of Salt Lake City is $1,442 a year for full coverage. This is higher than the Utah average of $1,186 per year for a full coverage policy, but pretty on par with national averages.
In November 2022, Salt Lake County home prices were up 3.4% compared to last year, selling for a median price of $504K. On average, homes in Salt Lake County sell after 40 days on the market compared to 17 days last year. There were 729 homes sold in November this year, down from 1,489 last year. Over 50% of the renters in Salt Lake City spend between $1,000 and $1,500 per month. Salt Lake City rentals don’t just apply to apartments, and household rentals make up 48% of occupied homes.
The median sales price in Salt Lake County was $519,000, up 8.2% from last year. The condo market performed slightly better than the single-family home market, with median sales prices up 8.59% to $227,983. But there were fewer condos listed for sale (down 16%) and fewer sales (down 7.91%). Condos that were listed sold fast, with a median days on market of 19 days, but this was 72% slower than in 2018 when it was just 11 days. For years, rehabbing was the most prevalent exit strategy used by Salt Lake City real estate investors, but we are starting to see a new trend.
Not only that, but listings are harder to come by in today’s market, too. The unique combination of affordability and a lack of listings suggest rental property owners will see plenty of demand for the foreseeable future, at least until more homes are constructed. The total fertility rate for the United States hovers between 1.8 and 2.1 depending on the source you want to believe. Mormons, the majority of the population in Salt Lake City and Utah as a whole, have an average of 3.4 children.
Salt Lake City requires landlords to get a business license, even if they own one rental home. The fees that you are required to pay as part of the rental program depend on how well-maintained the units are. Eviction for nonpayment of rent can get someone out in two to four weeks.
Choosing a real estate professional/counselor continues to be a vital part of this process. Four-bedroom apartment rents average $2,800 (a 20% increase from last year). Three-bedroom apartment rents average $2,200 (a 15% increase from last year). Two-bedroom apartment rents average $1,645 (a 13% increase from last year). So many California tech firms have relocated to Salt Lake City that the area is now nicknamed “Silicon Slopes”. Forbes listed Salt Lake City first on its list of “next tech meccas”.
If you are looking to make a profit, you don’t want to buy the most expensive property in the Salt Lake City real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Salt Lake City that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider.
It is also an effective way to get around Salt Lake City, and light-rail, commuter trains, and city buses make it possible. Expect to spend roughly $13 per person or more on meals in Salt Lake City when eating out. Buying groceries is the most cost-effective and sustainable option for living well and saving money in Salt Lake. For example, a gallon of milk in Salt Lake City is $2.46, and that’s $1.10 below the national average. Taxable income is determined by subtracting all personal exemptions from the total income. In the state of Utah, you can claim a personal exemption of $579 for each of the dependents that you claim on your federal tax return.
Annual Home Prices
The resulting activity brought confidence back to the Salt Lake City real estate market in a matter of months. Every real estate market across the country experienced a setback in the first quarter of 2020. Serving as no exception to the rule, real estate in Salt Lake City came to a standstill once the pandemic was declared a global emergency. Uncertainty and fear, in particular, all but brought the local housing sector to a standstill.
Residential real estate has boomed during the pandemic, and Utah has emerged as a particularly desirable market. Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. The latest data available shows that Utah closed 2021 strongly with solid employment gains and an annual growth rate of 4.7%. It is a seller’s market in Utah as the current housing supply can't satisfy demand, which will drive prices to increase further even in the face of rising mortgage rates.
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