Buying real estate can be viewed as an ideal investment, regardless of your reasons—whether you plan to live there permanently or rent it out to generate passive income.
It is forecasted that population growth in Salt Lake City, Utah, will soar in the upcoming years. Furthermore, the Wasatch Front region has a strong economy that is only increasing, thanks to factors like a low unemployment rate, a growing reputation as a tech hub, and the presence of top-tier businesses like healthcare, finance, travel, education, and hospitality.
Salt Lake City offers a wide range of housing options, including modest starter homes, opulent estates, or residences near the ski slopes.
The growing real estate market provides a multitude of opportunities for investors wishing to diversify their portfolios.
This article will analyze several different areas so you can decide where to purchase your next rental property investment in Utah.
Sugar House
Median listing home price: $649,900
Rental rate range: $1.50 - $2.25 per square foot
Perfect For: Singles, families, young professionals, retirees
The unusual name of Sugar House comes from the fact that it originally housed a sugar beet test site.
Whether potential tenants are searching for vibrant nightlife or a place to raise a family, Sugar House is one of the top Salt Lake City areas to purchase a home in.
This neighborhood is widely sought-after since it is close to the city center, but it also has every convenience and sycamore-lined boulevards.
The Sugar House of today is friendly, with a local vibe and artistic flair. Due to this, it is particularly well-liked by families, young professionals, and everyone who enjoys shopping locally.
Architectural styles like Craftsman, Victorian, Tudor, and others can be found in this well-known Salt Lake City area. Among Sugar House's hip and diverse attractions are golf courses and commercial centers like Sugar House Center.
In addition to all the exciting things to do there, Salt Lake City schools like Hawthorne Elementary School also serve the neighborhood. The fact that I-80 runs through the neighborhood makes it easy to commute anywhere in Salt Lake City.
The Avenues
Median listing home price: $821,000
Rental rate range: $1.70 - $2.35 per square foot
Perfect For: Singles, young professionals, families, retirees
This residential area is situated north of the downtown region and is one of Salt Lake City's oldest and most picturesque neighborhoods.
From the inhabitants to the city blocks to the various types of houses, everything within The Avenues is versatile.
This neighborhood is widely sought-after due to it’s proximity to downtown, as well as the University of Utah campus.
Due to the wide range of properties available on the local market, there has been a great deal of investment from "move-up buyers." Savvy investors are upgrading and expanding their investment portfolios to capitalize on the strong rental rates for the area.
Downtown Salt Lake City
Median listing home price: $525,000
Rental rate range: $1.65 - $2.40 per square foot
Perfect For: Young professionals looking to enjoy the hustle and bustle of city living.
If you are looking for one of the most exciting places to reside in Salt Lake City, then look no further than the thriving Downtown area. Residents will discover a region that is experiencing rapid residential and commercial development. This neighborhood also has many modern, high-rise apartment complexes, contemporary condos and modernized townhomes.
This neighborhood is in high demand due to the proximity to many highly reviewed restaurants, a vibrant night life, and world class entertainment.
Along with the city's economic expansion, the average price of properties has been rising all over the Downtown area. Because of this, Downtown is a fantastic choice for long-term investment.
Draper
Median listing home price: $779,900.
Rental rate range: $1.00 - $1.50 per square foot
Perfect For: Singles, young professionals, families, retirees
Draper was predominantly a town of farmland and other agricultural assets a few decades ago. Today, Draper's local area and scenery look very different.
Both contemporary townhomes and quaint cottages with mountain views are available to potential homebuyers. Active locals have many beautiful green areas to explore thanks to the 80 miles of trails and more than 35 parks.
As additional new house complexes become more available, Draper's new-build real estate market will continue to attract investors for years to come. Additionally, there are other projects slated to begin development soon. So, if you're thinking about investing in a rapidly expanding market while it's still in its early stages, Draper is unquestionably among the best.
Holladay
Median listing home price: $829,949
Rental rate range: $1.00 - $1.75 per square foot
Perfect For: Singles, young professionals, families, retirees
Holladay offers a wide range of home options for home buyers that suit any lifestyle. In this Salt Lake City suburb, you can find cozy cottages, roomy ranch-style homes on big lots, and contemporary townhomes.
Due to the proximity to several world class ski resorts, it offers a more appealing opportunity to purchase investment property than other Salt Lake City areas. This makes it an excellent area for prospective real estate investors to start their portfolios.
South Salt Lake
Median listing home price: $493,449
Rental rate range: $1.35 - $1.80 per square foot
Perfect For: Singles, students, young professionals
South Salt Lake, one of Salt Lake City's most up and coming areas, is situated 4-10 miles south of Downtown. Since many people can live close to where they work, commuting by walking, biking, or public transportation is easy.
From charming Craftsman homes to warm cottages and more, South Salt Lake offers a variety of housing options for people relocating to Salt Lake City to establish roots. In this coveted area, the median property price and the overall cost of living are lower than Sugarhouse and Downtown. In addition to its affordable price tags, South Salt Lake offers a ton of fun things to do, thanks to its extensive green areas and selection of stores and restaurants.
Start Investing Today
Now that you know some of Salt Lake City's best neighborhoods for real estate investing, you can get started immediately! Starting now will enable you to reap the benefits of your investment.
At Wolfnest, our professional and experienced staff is available to help you find the perfect rental property in Salt Lake City! We will work with you to find an investment property, do the appropriate financial analysis, outline the due diligence needed to protect yourself, and generally enable you to accomplish a successful transaction. Contact us to get started!
