Salt Lake City Real Estate Update - 2024

Comprehensive Real Estate Report: Salt Lake City, UT

Executive Summary

Salt Lake City, the capital of Utah, is experiencing a dynamic phase of growth and development. This report provides an in-depth analysis of the region's real estate market, focusing on popular and fast-growing zip codes, crime rates and trends, economic and development plans, and demographic and population growth information. The insights presented are based on data from various sources, including Zillow, HomeSnacks, ZipDataMaps, Norada Real Estate, and local news outlets.

1. Popular and Fast-Growing Zip Codes

Salt Lake City's real estate market is characterized by several ZIP codes that have shown significant growth in rental rates and population. According to Zillow data, the ZIP codes with the fastest-growing rent in Utah as of January 2021 include 84081 (West Jordan), 84606 (Provo), 84115 (Salt Lake City), 84005 (Eagle Mountain), 84043 (Lehi), 84015 (Clearfield), 84404 (Ogden), and 84041 (Layton) ("Zip codes with the fastest growing rent in Utah," n.d.). These areas have seen a change in the Zillow Observed Rent Index for all homes and apartments over the last year, indicating a high demand for housing.

Furthermore, HomeSnacks' analysis using Saturday Night Science reveals that the fastest-growing cities in Utah for 2024 are Vineyard and Herriman, with Vineyard experiencing a staggering 6495.3% growth since 2010 and Herriman growing by 201.7% in the same period ("The 10 Fastest Growing Cities In Utah For 2024," n.d.). These cities, along with others such as Saratoga Springs, Eagle Mountain, Bluffdale, West Haven, Lehi, Santaquin, South Jordan, and Washington, are leading the state in terms of population growth.

More neighborhoods and zip codes information are here

2. Crime Rate and Trend

Crime statistics in Salt Lake City present a nuanced picture. While violent crimes spiked and have decreased, they are still up compared to 2019. The city's District 4, which includes most of downtown, accounted for about 27% of the city's violent crime based on data from 2019 to 2021 ("Is violent crime up in Salt Lake City?" n.d.). However, overall crime in Salt Lake City reached a historic 15-year low in 2023, with an 11% drop in overall crime and a 10% reduction in violent crimes, although the number of homicides remained unchanged ("Overall crime reaches 15-year low in Salt Lake City," n.d.).

Salt Lake City has also entered the next phase of its data-driven strategy to combat violent crime, focusing on addressing the root causes of violent crime in specific areas of the city ("Salt Lake City enters next phase of data-driven strategy to combat violent crime," n.d.).

3. Economy and Development Plans

Salt Lake City's economy is robust, with landlord-friendly regulations and a favorable legal environment for property owners. The state of Utah offers efficient eviction processes and fair property tax rates, making it an attractive setting for real estate investment ("The Fastest Growing Cities For Rents in the Salt Lake City Metro Area," n.d.). The population growth, driven by natural growth and in-migration, coupled with the city's strong economy and diverse job opportunities, enhances the potential for real estate investments.

The city's master plans outline community and economic development goals for specific areas, with a focus on integrating housing, transportation, economic development, and critical services. The 2020-2024 Consolidated Plan encourages investment in neighborhoods with concentrated poverty and supports at-risk populations by promoting goals that increase access to these essential services ("2020-2024 Salt Lake City Consolidated Plan," n.d.).

4. Demographic and Population Growth Information

Salt Lake City's population is on an upward trajectory. The current projection for the 2024 population of the Salt Lake City metro area is approximately 1,214,000 million people, a 0.91% increase from 2023. The city is working to accommodate this growth by creating pedestrian-friendly areas and promoting urban innovation ("2024 state of Salt Lake City: Pioneering inclusive growth and urban innovation," n.d.).

The city's population has increased by 5.47% since the 2020 census, with an average household income of $107,280 and a poverty rate of 14.1%. The median age in Salt Lake City is 32.5 years, indicating a relatively young population ("Salt Lake City, Utah Population 2024," n.d.).

5. Business Incentives in Salt Lake City

Salt Lake City offers a plethora of business incentives designed to attract and retain businesses, fostering an environment conducive to economic growth and development. These incentives are strategically crafted to support businesses across various stages of growth, from startups to established enterprises.

Financial Incentives and Support Programs
The city provides financial incentives that may include reimbursement of building and development-related fees. These incentives are aimed at promoting significant revenues, job creation, stability, and appropriate development, particularly in older parts of the city (KSL.com, 2023). Additionally, the Governor’s Office of Economic Opportunity Grants offers occasional grant funding to support Utah businesses, with a focus on expanding access to capital, especially for underserved communities (business.utah.gov, 2023).

Opportunity Zones and Foreign Trade Zone #30
Salt Lake City has designated Opportunity Zones (OZs) to spur economic development and job creation in distressed communities. These OZs offer tax benefits to investors who invest in Qualified Opportunity Funds aimed at these zones (slc.gov, 2023). Furthermore, the Salt Lake City Foreign Trade Zone #30 provides opportunities for businesses to engage in international trade with certain financial advantages (slc.gov, 2023).

Workforce Development and Education Partnerships
The city prioritizes workforce development and has established partnerships with educational institutions to ensure a skilled labor force that meets the needs of businesses (slc.gov, 2023).

6. Job Growth and Employment Information

Salt Lake City has demonstrated a strong recovery from the COVID-19 pandemic, with a job market that continues to expand. The city's employment landscape is characterized by a blend of stability and growth, with a particular emphasis on high-tech industries.

Employment Statistics
As of November 2023, Salt Lake City had 828,900 jobs according to the Current Employment Statistics (CES) survey, with the household survey reporting 728,924 employed persons (deptofnumbers.com, 2023). The city added 600 jobs in November 2023, indicating a positive trajectory in employment growth (deptofnumbers.com, 2023).

High-Tech Sector and Economic Rankings
Salt Lake City has experienced remarkable growth in high-tech GDP and wages over the past five years, contributing to its jump in economic rankings (deseret.com, 2024). However, a slowdown in job growth during late 2022 and early 2023, particularly due to tech layoffs, has raised concerns about the sustainability of this growth (deseret.com, 2024).

Consumer Sentiment and Employment Trends
Utah's consumer sentiment reached its highest level in over two years as of December 2023, reflecting confidence in the state's economic outlook. Employment growth, however, continues to moderate (slchamber.com, 2023).

7. Major Employers and New Business Movements

Salt Lake City is home to a diverse array of major employers across various industries, contributing to the city's economic vitality.

Existing Major Employers
The city boasts a mix of established companies that serve as major employers. Notable names include Barrick Gold, Dyno Nobel, and GE Capital Financial Inc., which are recognized for their contributions to the local economy (zippia.com, 2024).

New Business Movements
Recent shifts in the commercial construction industry have seen a move from multifamily and large office projects to commercial and government-funded projects, indicating a strategic adjustment to market demands (enr.com, 2024). This shift is driven by the ongoing need to identify sectors within the state that have received necessary funding for construction.

8. Large Residential and Commercial Development Projects

The Domain Tower at 370 S. West Temple
One of the most notable projects is the Domain Tower, a skyscraper proposed at 370 S. West Temple. This development is a part of the downtown building boom and is expected to significantly impact the city's skyline. The Domain Tower will feature 342 apartments, a 202-room boutique "lifestyle" hotel, approximately 14,000 square feet of retail and restaurant spaces, and 265 parking stalls. The project, developed by The Domain Cos., is set to complete in early 2024 and is moving forward on an accelerated schedule due to high demand for downtown real estate (The Salt Lake Tribune, 2021).

The Post District
Another substantial development is the Post District, a $144 million-plus project that replaces urban blight with 580 new dwellings, offices, and restaurants along a key gateway to Utah's capital. This mixed-use project spans nearly a full city block and is among the largest of its kind in Salt Lake City's central business district. The Post District includes nearly a dozen residential and commercial buildings, contributing to the city's record-setting construction activity (The Salt Lake Tribune, 2023).

Astra Tower
The Astra Tower is set to be the tallest high-rise in Utah, standing at 450 feet with 40 stories. It will include 372 apartment units, private parking, ground-floor retail, and 40,000 square feet of amenity space. The building is designed with a post-tensioned concrete structure to minimize earthquake damage and will feature floor-to-ceiling glass walls for scenic views. The project team is seeking LEED Gold certification and intends to integrate WELL Building concepts. Completion is expected in fall 2024 (Construction Dive, 2021).

9. New Construction Communities and Builders

Meritage Homes Communities
Meritage Homes, the fifth-largest public homebuilder in the U.S., has announced the opening of three new communities in the greater Salt Lake City area. These communities are Erickson Meadows in Grantsville, Prosperity at Overlake in Tooele, and Brylee Farms in Eagle Mountain. They offer a variety of modern and energy-efficient homes, with the first two communities opening in November 2023 and the third in 2024 (Utah Business, 2021).

Terrata Homes
Terrata Homes is offering luxury new construction homes for sale near Salt Lake City. Their portfolio includes a range of home designs that meet modern living standards, with a focus on quality, comfort, and luxury. Terrata Homes provides detailed information about their properties, including images, community details, and pricing, on their website (Terrata Homes, n.d.).

10. Real Estate Listing Inventory and Price Trend Information

Market Overview
As of January 2024, the Salt Lake City housing market is somewhat competitive, with homes receiving an average of 3 offers and selling in around 64 days. The median sale price of a home was $515K, up 1.8% since last year. The market trends indicate a seller's market, with a significant percentage of homes selling above the list price. However, buyers can still find opportunities, especially with homes selling slightly below the list price (Redfin, 2024; Norada Real Estate Investments, 2024).

Inventory and Price Trends
The inventory of homes available for sale in Salt Lake City stands at 2,652, with 686 new listings as of January 31, 2024. The Salt Lake City real estate market had 814 homes for sale in January 2024, a 43.6% increase compared to December 2023. The average listing age was 84 days in January 2024, down by 4.7% compared to the previous month (Norada Real Estate Investments, 2024; Rocket Homes, 2024).

Forecast
The Salt Lake City housing market forecast for 2024 and 2025 predicts a 5.4% growth in the housing market by January 31, 2024. The average home value in the metro area is $523,832, reflecting a modest 0.3% increase over the past year. These projections signify potential for continued positive momentum in the market (Norada Real Estate Investments, 2024).

Conclusion

Salt Lake City is a region of rapid growth and development, with several zip codes and cities experiencing significant increases in population and rental rates. The city's crime rate shows a complex trend, with overall crime reaching a 15-year low in 2023, despite a spike in violent crimes in previous years. The economy is strong, with development plans in place to support continued growth and investment. The demographic data indicates a young and increasing population, which will likely continue to drive demand in the real estate market.

To see more Salt Lake City neighborhoods, click here

References

Stacker. (n.d.). Zip codes with the fastest growing rent in Utah.
HomeSnacks. (n.d.). The 10 Fastest Growing Cities In Utah For 2024.
ZipDataMaps. (n.d.). Map of the Fastest Growing ZIP Codes in the United States (2000 to 2022).
Norada Real Estate. (n.d.). The Fastest Growing Cities For Rents in the Salt Lake City Metro Area.
The Salt Lake Tribune. (n.d.). Is violent crime up in Salt Lake City?
Deseret News. (n.d.). Overall crime reaches 15-year low in Salt Lake City.
Deseret News. (n.d.). Salt Lake City enters next phase of data-driven strategy to combat violent crime.
Deseret News. (n.d.). 2024 state of Salt Lake City: Pioneering inclusive growth and urban innovation.
Macrotrends. (n.d.). Salt Lake City Metro Area Population 1950-2024.
Salt Lake City Government. (n.d.). 2020-2024 Salt Lake City Consolidated Plan.
World Population Review. (n.d.). Salt Lake City, Utah Population 2024.
KSL.com. (2023). Salt Lake City mayor seeks record $444.5M budget. Here's what's inside the proposal.
business.utah.gov. (2023). Grants.
slc.gov. (2023). Business Resources.
deptofnumbers.com. (2023). Employment in Salt Lake City, Utah.
deseret.com. (2024). Utah cities ranked top in the country for business and job growth.
slchamber.com. (2023). Roadmap Dashboard.
zippia.com. (2024). Best Companies in Salt Lake City, UT.
enr.com. (2024). February 2024 City Scoop: Salt Lake City.
Construction Dive. (2021). Utah's tallest high-rise under construction in Salt Lake City.
Norada Real Estate Investments. (2024). Salt Lake City Housing Market Forecast for 2024 & 2025.
Redfin. (2024). Salt Lake City, UT Housing Market.
Rocket Homes. (2024). Real Estate Trends in Salt Lake City, UT.
Terrata Homes. (n.d.). Salt Lake City, UT.
The Salt Lake Tribune. (2021). Look what’s coming to downtown Salt Lake City: another skyscraper.
The Salt Lake Tribune. (2023). Take a look at the Post District, SLC's big new neighborhood on the west edge of downtown.
Utah Business. (2021). Meritage Homes brings three new communities to Salt Lake City.