Why Do You Invest in Utah + Odgen, SLC & Provo?

Question

BiggerPockets! I'm working on building a landing page for the state of Utah and cities of Ogden, Salt Lake City, and Provo. Would anyone be willing to share why you choose to invest in the state and/or cities? What makes your state so wonderful for investors?

Jeremiah Maughan · Answer

Here's a list of a few things that I'm aware of from my participation with the Utah Apartment Association's various economic conferences:

Utah is a very stable place to invest because
-Utah has a highly educated workforce
-Utah has very reasonable tenant/landlord laws
-Utah has a significant population increase from both net in-migration and internal birthrate
-Utah has a seen a significant increase in quality jobs, unemployment is extremely low
-Cost to acquire property is still affordable compared to other areas that are also seeing significant economic progress

As for the cities:-The Provo/Orem area is a bit harder on landlords, but has two large universities, nearly 80,000 college students total, only five miles from each other.  Lots of entrepreneurship also.-Ogden remains pretty affordable, close to a military base.-Salt Lake is becoming more diverse and seeing a lot of investment as companies leave California

Downsides:-Appreciation has greatly outpaced rental rates-We're hitting an affordability gap (While we have great jobs, those high paid employees tend to buy. Renters still tend to have low paying jobs. The high paying jobs, with all their purchasing, are driving up the cost to acquire investment property).

Lauren Havens · Answer

@Lauren Hogan

Utah is the prettiest state in America. The people are kind and genuine. The government is honest. The market is strong. One of the most diverse economies. The short term rental market is opportunistic. I love Utah.

Janet Orgill · Answer

Most of my reasons to own property in Utah, though I'm out of state, have been listed already.  However, if you are keeping a tally I'll add them here.

• Equitable balance between laws protecting tenants and landlords
• Many highly qualified applicants (most of my tenants are married students with great credit scores)
• Growth economy assures stability going forward, whether renting or selling the property

I would second @Jeremiah Maughan list of downsides however, that local government in Provo are not always willing to see that the best and highest use of a property might not be a single family home.  I've also had a little trouble finding affordable contractors since the economy is booming and building is rampant.

Cody Richard · Answer

@Lauren Hogan Living in Utah comes with a great quality of life! From the mountains right outside your window to the National Parks nearby, Utah has so many great natural attractions that have kept me in the state. Just recently, Utah was rated as the 4th best state to live in the United States by U.S. News. The key factors that made Utah so great were the economy (2nd best), infrastructure (3rd best), and fiscal stability (5th best). Having the 2nd best economy is an example of why the real estate market in Utah has been so great to invest in. There are many cash buyers for those looking to sell and many financing sources for those looking to buy! Hope this helps :)

Martin Carstens · Answer

Lauren, the state and cities have SO many things going for it!  There are some very smart people that know much more than I do on economics, and  figured out direct flights from SLC to europe were a good idea. Look at the airport expansion.  The quiality of life, from Ogden to Provo are getting the attention in many areas. You have an educated population pool, that silcon slope is happy to tap into. Projected growth for the state and region have some down sides, however what a great problem to have! Real estate is a big part of that. Even if home prices are on the rise. We all know there are opportunities in all markets.

Justin Williams · Answer

@Lauren Hogan

I started investing here because I'm from the area; but I have to say that I am so lucky to have been born and raised in such a place. It is indeed a beautiful place with world class winter sports activities as well as national parks in just about every direction. As noted by others; economy, infrastructure, and fiscal stability are strong. We have good universities, safe neighborhoods, nice people. Others have suggested that affordability is a problem, but I will continue investing here nonetheless. My only complaint about living in the Salt Lake Valley is the inversion.

Rachel De Villava · Answer

@Lauren Hogan. I invest in both NJ (where I used to live) and Utah. These are some of the benefits I’ve found with being an investor/landlord in Utah:

- Strong economy and job market (surely Covid has had some impact but overall I think Utah is fairing much better than other parts of the US). When I have a unit up for rent, it’s typically rented out the same day and I’ll have multiple qualified applicants.

- Steady appreciation: we saw big-growth years a few years back with appreciation in the double digits. Though those days are behind us, we still enjoy above average appreciation rates compared with other regions.

- Companies continue to flock to Utah (tech and finance) from other high-cost areas, moving their headquarters here or at least expanding their presence.

Why Do You Invest in Utah + Odgen, SLC & Provo?

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