What Factors Determine the Best Market for Multifamily Investing
When most people think of Utah, they're probably imagining the world-class ski resorts or its five national parks. Though its snow-capped mountains and red-rock landscapes are amazingly beautiful, Utah has much more to offer, including a bustling economy that may surprise you.
A few days ago, I wrote about the massive population growth in the Greater Salt Lake City (SLC) area. If you didn't see it, let's just say Utah has been the fastest growing state in the country and the Greater Salt Lake City metro region is responsible for over 90% of that growth.
Today, we're talking about the economy, which has been a huge factor in that growth. To summarize the rest of this blog, let's just say there's a really good reason that US News determined that Utah has the best economy in the nation.
And if I were to look for the BEST place to invest in apartments, I'd look for high population growth and a strong economy, and it just so happens that Utah is #1 in BOTH.
We're actively looking for multifamily properties to purchase in the Greater Salt Lake City metro, so if you're looking to place $50k or more in the next 3-6 months, fill out the form here and we'll be in touch.
The net increase in jobs in Utah over the last few years has exceeded the adult population increase, which will continue to fuel net migration for years to come. This is especially true in the tech and life sciences sectors, which both tend to attract a highly educated work force.
Here's a snapshot of some statewide rankings we compiled:
Ranked #1 Economy by U.S. News and World Report (Source)
Ranked #1 in Job Growth by U.S. News and World Report (Source)
Ranked #1 in trailing 5 year GDP growth rate (Source)
Ranked #1 state in Economic Outlook (Source)
Ranked #1 state in High-Tech Job Growth, Short-Term Job Growth, and State R&D Investment by the U.S. Chamber of Commerce (Source)
Ranked #5 state in economic diversity in 2021 (Report)
Ranked #6 lowest unemployment rate in the nation (Source)
I could go on, but I think this paints a pretty solid picture. What does this mean for Utah? The booming economy should lead to continued high population growth due to net migration in the coming years, which will exacerbate the current housing shortage. Couple that with the expected wage increases that come with job growth + low unemployment, and we should see both rents and prices continue to climb, even in a relatively high-interest-rate environment.
With an extremely high population growth rate and booming economy, Salt Lake City Metro is definitely one of the best markets for multifamily investing this year (and for many to come). If you have $50k or more to invest in the next 3-6 months and want to invest in the nations fastest-growing economy, let's set up a free strategy schedule call here . Don't wait to buy real estate, buy real estate and wait.