Best City for Investing in Apartments
If you know me well, you'll know that I'm a huge fan of Utah - which is also my home state. Well, I was not surprised when the U.S. News and World Report ranked the State of Utah #1 in its recent "Best States" article (see article here).
Today, we'll focus on population growth in Utah... and it's growing FAST!!
We're actively looking for multifamily properties to purchase in the Greater Salt Lake City metro, and if you're on our investor list, you'll be the first to know when we find one. If you're not, join our investor list here!!
Utah
Utah's population growth has been the highest in the nation for quite some time... and population growth is one if the biggest factors in determining where to invest in real estate. First of all, a fast-growing population indicates that there's something very attractive about living in a particular location. In Utah's case, it's absolutely beautiful and has a rip-roaring economy - check out the blog on that one next. Second, fast-growing populations lead to higher demand for housing, and if that increased demand isn't matched by an increase in supply, then housing prices will increase. Utah's housing market (both single family and multifamily) has not kept up with the population growth, leaving a supply-demand imbalance that makes investing in Utah very attractive. In real terms, that means both rents and values will continue to increase significantly. Here's a snapshot of the numbers:
Fastest growing state from 2010-2023 with a total population growth of 23.88% (U.S. Census Bureau)
Annual growth rate of 1.8% in 2022 was the highest since 2017 and much higher than the average U.S. population growth of 0.4%
Highest birth rate in the nation at 14.9 per 1,000 population compared to 10.8 nationwide
Net migration in 2022 was the highest ever at over 38,000 compared to a state-wide population of 3.4 million
Utah is the youngest state in the nation with a median age of 31.3 compared to the national median of 38.2
By the numbers, it's clear that Utah is growing faster than any other state in the nation and developers and builders have not been able to keep up with the pace. With such a supply and demand imbalance, multifamily investments will continue to do well over the foreseeable future...
Salt Lake City
The Greater Salt Lake City area is a relatively small portion of the entire state, but has nearly 3 million of the state's 3.4 million population. The state's population center is largely focused along the base of the Wasatch Mountains - commonly referred to as the "Wasatch Front" - and includes several counties. Here are the largest along with their population:
Salt Lake County (1.2 million)
Utah County (750k)
Davis County (400k)
Weber County (300k)
Cache County (150k)
When looking at growth, these counties account for 90% of the growth in the state with Utah County growing the fastest at a blistering 3.5% per year. Over the last few years, I've been busy building my team and developing relationships within the multifamily space in the Greater Salt Lake City Area.
We're actively looking for investment opportunities that will build generational wealth for you and your families.