Utah - looking for 2024 local RE market nuances: SLC, Lehi, Orem, Provo etc

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Utah - looking for 2024 local RE market nuances: SLC, Lehi, Orem, Provo etc

Shawn W.
Member since 2024 · 18 posts · 9 votes

Hi everyone! 

I'm looking to understand the local market differences among the cities in Utah - Salt Lake City, Lehi, Orem, Provo (or others), for Single Family or small (2-4) Multifamily Rental property investment. 

-Job growth/economic trend in the local pockets 
-Is the 'silicon slope' (Lehi) overrated/saturated? or do you see continuing growing trend in that/nearby market?
-Any local policy changes trend? ( perhaps related to STR vs LTR, if I want to have additional options - mainly planning on Long term rental)
-Areas that are looking better for cash flow?
-Utah has been hot for a while, so I'm hoping to see what are some of areas that's still a safer bed in 2024. (looking to make a move in the next couple of months!) 

I'm a remote investor, currently doing my market research and has zoomed into Utah. This will be my first 'real' investment (after accidentally got into RE investments previously) so I'm hoping to keep the risk level lower if possible. 

-Hoping for affordable (relatively) options - from which I can also afford to learn my lessons and get my feet wet. 
-Looking for areas that has safer cashflow (even though I understand it's getting harder and harder). Appreciation would be great but that's something harder to predict.
-Appreciate any suggestions on under the radar areas or pockets outside of the areas that mentioned. 

I would love to connect with a team as my next step!  Hope to get some general ideas and zoom in more first, so I don't waste anyone's time! :)

Grateful for any advice or resource! 

Thank you!

Shawn

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William Hochstedler
Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
2y

Utah is expensive.  However, mid and long term upside are still favorable.  Salt Lake is getting compared to places like Austin and Denver (but might not be cheaper).  Utah's economy and market diversity is excellent.  The problem is continued growth is dependent on out-of-area money continuing to come here as the vast majority of Utahns can't afford to purchase homes.

My opinion (and what other's have said) about regions (sorted by size):

Salt Lake county: Home of SLC and the major metro in Utah. A growing list of amenities. Size-wise its a top 50 national market and should be analyzed that way. Davis county is basically Salt Lake suburbs.

Utah county:  Geographically constricted and full of tech and health care jobs.  As others have said here "path of progress" moves west and south.  I'm not sure if Santaquin or Saratoga has a better continued upside than Orem or Provo which are the two metro hubs.

Ogden Metro:  Hill AFB and the IRS provide a LOT of jobs in Weber county.  Past 5 to 10 year run up in prices has been disproportional to amenities and the quality of the inventory.  Still the cheapest inventory on the populated portion of the Wasatch front (places served by the Frontrunner).  Even in this market, it's hard to sell a $250K piece of junk in Ogden that gets $1200/mo rent.  Opportunities are here but the appreciation that accompanied this market going from a class D to a class C was driven only by people who could not afford anywhere else in Utah.  That will probably remain to be true.  But no real renaissance seems imminent because it got too expensive (and restrictive) for the artist type.  There are nicer pockets, but the nicer communities have moved up Weber Canyon into Morgan County.

Saint George: Growing retirement community that is tracking the sun-belt growth. Great weather. Still Utah centric in that everyone I know who is passionate about St George has family there. But I'll defer on this to better knowledge.

Cache County & Logan:  I live here and can't figure it out.  Lowest unemployment in the country.  Starting to see some really good employers.  Has quite a bit of "other money" combined with navel gazing.  Beautiful and getting very expensive.  There's a possibility that this will continue the trajectory to be another expensive Western mid-size market.  But that will be reliant on outside money coming to a somewhat sheltered community that hasn't traditionally catered to affluence or outsiders.

Other micro-markets of note: Park City (compare to other national resort towns), Vernal, Cedar City, Tooele, Moab, Price

Rural Utah: There's a lot of it including beautiful areas that could make great STR's, remote work situations, etc. In most markets outside of the above, the piano might stop playing when you come to town. That's not always bad. But absentee owners may have issues. Likely the same with small towns everywhere.

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  • Taylor Woodbury
    Real Estate Agent · Lehi, UT · Member since 2019 · 27 posts · 21 votes
    2y

    Are you looking for cash flow or appreciation? I’m not saying you can’t have both, but unless you have a sizable down payment most properties in Utah are not going to cash flow with current interest rates. Most of those areas you’ve mentioned still have amazing appreciation potential. Two more I might suggest exploring are Vineyard or Bluffdale. Happy to chat anytime, feel free to message me. 

    0Reply
  • Carl Davis
    Lender · AZ · Member since 2022 · 148 posts · 95 votes
    2y

    Shawn, from what I’m understanding you explain, it seems like you want a low price point with decent cash flow.

    If you’re looking in Utah, you might want to consider other markets for this buy-box.

    For my clients that are looking to invest in the wasatch front I’m constantly trying to help set realistic expectations for them.

    You won’t find much cash flow unless you’re putting a sizable down payment down, house hacking and waiting for rents to increase, using creative finance, or using another rental strategy like mid term rentals or rent by the room.

    On the flip side of this, Utah has one of the strongest economies, youngest demographics, and most educated population in the country. It’s why I still invest here and have high hopes for the appreciation wave especially with the Olympics in 2034 coming to SLC.

    As far as the silicon slopes go, a lot of people are buying west in eagle mountain and Saratoga springs. I would consider these areas in the path of progress and still think there is a lot to be gained in these areas.

    Vineyard is another one that was mentioned that could be good in the future. They’re building a resident friendly city there that will be called Utah city.

    For what you’re looking for it might be better to check out a Midwest market if you’re not open to creative options or different strategies.


    0Reply
  • Logan M.
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y

    I highly suggest reading the Kem Gardener Institute grow trends report, it provides incredible information.

    1Reply
  • Shawn W.
    OP
    Member since 2024 · 18 posts · 9 votes
    2y

    @Logan M. This is indeed incredible resource, I spent quite some time going through Kem Gardener Institute's website - very insightful -and data backed- content! 

    0Reply
  • Shawn W.
    OP
    Member since 2024 · 18 posts · 9 votes
    2y
    Quote from @Carl Davis:

    Shawn, from what I’m understanding you explain, it seems like you want a low price point with decent cash flow.

    If you’re looking in Utah, you might want to consider other markets for this buy-box.

    For my clients that are looking to invest in the wasatch front I’m constantly trying to help set realistic expectations for them.

    You won’t find much cash flow unless you’re putting a sizable down payment down, house hacking and waiting for rents to increase, using creative finance, or using another rental strategy like mid term rentals or rent by the room.

    On the flip side of this, Utah has one of the strongest economies, youngest demographics, and most educated population in the country. It’s why I still invest here and have high hopes for the appreciation wave especially with the Olympics in 2034 coming to SLC.

    As far as the silicon slopes go, a lot of people are buying west in eagle mountain and Saratoga springs. I would consider these areas in the path of progress and still think there is a lot to be gained in these areas.

    Vineyard is another one that was mentioned that could be good in the future. They’re building a resident friendly city there that will be called Utah city.

    For what you’re looking for it might be better to check out a Midwest market if you’re not open to creative options or different strategies.


     Hi @Carl Davis, Thanks a lot for the insights! I'll look into eagle mountain, Saratoga spring and vineyard as well. 

    I know I'm torn between Utah and Midwest market - it's like my heart goes to Utah, but the Midwest market is closer to my cashflow goal/affordability for this first move. I'll research a bit more in terms of the long term strategy, perhaps Midwest to start and build some cashflow foundation and then looking into Utah in the near future. But I also want to be mindful not to spread out too many geographic locations for efficiency. 

    Would you mind if PM you when i dig into Utah a bit more during my research? 

    1Reply
  • Shawn W.
    OP
    Member since 2024 · 18 posts · 9 votes
    2y
    Quote from @Taylor Woodbury:

    Are you looking for cash flow or appreciation? I’m not saying you can’t have both, but unless you have a sizable down payment most properties in Utah are not going to cash flow with current interest rates. Most of those areas you’ve mentioned still have amazing appreciation potential. Two more I might suggest exploring are Vineyard or Bluffdale. Happy to chat anytime, feel free to message me. 

     Hi @Taylor Woodbury! I'll look into Vineyard and Bluffdale, thanks! 

    I'm hoping to build on cashflow first before appreciation. As i mentioned in the previous responses to Carl, i'm a bit torn between Utah and the Midwest. If everything is equal perhaps you can afford 2 deals in Midwest, and 1 in Utah. So I'm trying to explore creative ways to invest in Utah that I can find a balance - understood that i may need to lower my cashflow expectation. 

    0Reply
  • Tim L.
    Investor · Fort Lauderdale, FL · Member since 2023 · 19 posts · 4 votes
    2y

    I purchased in West Valley City pre-COVID and have seen massive appreciation. It's a good area, it's gentrified very, very well. Wish I had purchased more. 

    0Reply
  • Ryan Davies
    Investor · Salt Lake City, UT · Member since 2019 · 339 posts · 126 votes
    2y

    Happy to help! I live in Utah and have a portfolio here.

    0Reply
  • William Hochstedler
    Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
    2y

    Utah is expensive.  However, mid and long term upside are still favorable.  Salt Lake is getting compared to places like Austin and Denver (but might not be cheaper).  Utah's economy and market diversity is excellent.  The problem is continued growth is dependent on out-of-area money continuing to come here as the vast majority of Utahns can't afford to purchase homes.

    My opinion (and what other's have said) about regions (sorted by size):

    Salt Lake county: Home of SLC and the major metro in Utah. A growing list of amenities. Size-wise its a top 50 national market and should be analyzed that way. Davis county is basically Salt Lake suburbs.

    Utah county:  Geographically constricted and full of tech and health care jobs.  As others have said here "path of progress" moves west and south.  I'm not sure if Santaquin or Saratoga has a better continued upside than Orem or Provo which are the two metro hubs.

    Ogden Metro:  Hill AFB and the IRS provide a LOT of jobs in Weber county.  Past 5 to 10 year run up in prices has been disproportional to amenities and the quality of the inventory.  Still the cheapest inventory on the populated portion of the Wasatch front (places served by the Frontrunner).  Even in this market, it's hard to sell a $250K piece of junk in Ogden that gets $1200/mo rent.  Opportunities are here but the appreciation that accompanied this market going from a class D to a class C was driven only by people who could not afford anywhere else in Utah.  That will probably remain to be true.  But no real renaissance seems imminent because it got too expensive (and restrictive) for the artist type.  There are nicer pockets, but the nicer communities have moved up Weber Canyon into Morgan County.

    Saint George: Growing retirement community that is tracking the sun-belt growth. Great weather. Still Utah centric in that everyone I know who is passionate about St George has family there. But I'll defer on this to better knowledge.

    Cache County & Logan:  I live here and can't figure it out.  Lowest unemployment in the country.  Starting to see some really good employers.  Has quite a bit of "other money" combined with navel gazing.  Beautiful and getting very expensive.  There's a possibility that this will continue the trajectory to be another expensive Western mid-size market.  But that will be reliant on outside money coming to a somewhat sheltered community that hasn't traditionally catered to affluence or outsiders.

    Other micro-markets of note: Park City (compare to other national resort towns), Vernal, Cedar City, Tooele, Moab, Price

    Rural Utah: There's a lot of it including beautiful areas that could make great STR's, remote work situations, etc. In most markets outside of the above, the piano might stop playing when you come to town. That's not always bad. But absentee owners may have issues. Likely the same with small towns everywhere.

    3Reply
  • Shawn W.
    OP
    Member since 2024 · 18 posts · 9 votes
    2y

    @William Hochstedler took me a while to digest and research. Thank you so much for this in-depth area breakdown. I'll send a request to connect if that's ok! 

    0Reply
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