Utah’s population is set to grow by 2.2 million in the coming decades. This makes it a hot market for long-term rentals.
The question is, where should you buy a property in Utah to rent? After all, location is always a crucial factor to consider if you’re thinking of buying any sort of property.
In this guide, we want to help you figure out the best place to buy an investment property in Utah. We’ll run through the cities with the best outlook for rentals in Utah state. So enough with the intro, let’s check out these cities.
Buying Property in Provo
Provo is becoming ever more popular since it has a growing and diverse job market. So understandably the unemployment rate is often very low and the work opportunities are great.
With such a strong economy, Provo should be a serious consideration for anyone looking to buy a rental property in Utah. Keep in mind that property prices have been rising fast in Provo at a rate of nearly 20% over the last year, and people predict they’ll keep growing. So, it makes sense to get into this market quickly for a more profitable investment opportunity.
In terms of rental income potential for Provo, you might expect to get between $1,000 to $1,400 per month. It’s also good to know that a large proportion of the Provo population rent their homes.
Investment Properties in Ogden
Ogden has to be at the top of the list in the Utah real estate market. It’s a very attractive-looking town with excellent schools. Plus, it has a strong economy and a low unemployment rate too.
In general, this town has a mixture of all the things an average family would want for a good life. And since the town has so much appeal in terms of schooling, work opportunities, and outdoor activities, it’s no wonder that investment property buyers want a piece of the action.
For anyone looking to buy in this market, rental-style property prices are often anywhere between $200,000 to $250,000. These prices are much less than what you would expect to pay in Salt Lake City and a little lower than Provo prices.
St. George Properties
Another hot spot for buying investment property in Utah is St. George. One reason for this is that some analysts predict there will be some decent population growth in the city, meaning more demand for homes. The job market outlook looks promising in St. George too.
However, if you are looking to buy in St. George, property prices tend to be more than in Provo and Ogden, yet still below what you would expect to pay in Salt Lake City.
At current prices, you might pay around $300,000 for a good rental property in the city. In the coming years, property prices are predicted to increase.
Buying Rental Properties in Draper
Draper is a town that most people would assume has reached its full potential in terms of growth. However, since they are now moving the prison from Draper to the north of Salt Lake City, there will be hundreds of acres of land freed up with possible investment potential. Or, at the very least there will be potential for growth in the city if the land is utilized.
Average rents in the town are pretty high at around $1,800 per month. Plus, the growth of property prices has been strong over the last year and many see this continuing.
Property Investing in Salt Lake City
We couldn’t leave out the state capital when it comes to Utah real estate investing. It’s becoming ever more a popular place for people to relocate to from across America. There’s high wage and job growth, and the economy continues to remain strong.
Plus, Salt Lake City offers some beautiful outdoor locations for various fun and exciting activities. For instance, just a stone’s throw away you can enjoy world-class ski resorts. As well, there are some incredible trails to walk or cycle on, perfect for family outings throughout the year.
Of course, given that Salt Lake is the capital, you can expect higher property prices than other towns and cities in the state. however, you can also expect to get relatively higher returns through rental income.
Just so you have an idea, a two-bed apartment in Salt Lake City may be able to bring in a monthly rental income of around $1,300 to $1,600 per month, if we’re talking averages. There are premium options available, and the further you travel out of the city, the cheaper it will be to buy an investment property.
If you’re interested in the suburbs of Salt Lake City, West Jordan is a good place to explore. It’s a great place for anyone who wants the best of both worlds in terms of suburban and urban environments.
Rents in this neck of the woods tend to be just over the $1,000 mark for studio-type accommodation. For large 4 to 5-bedroom homes, you may be able to command a rental price of up to $3,000 per month!
If you’re looking for a wild card location in Utah to invest in, Spanish Fork is a prime contender. It’s a small and quaint little town with a beautiful and historic-looking main street. Yet, there are plenty of conveniences that you would expect in larger cities available for local residents.
Since Spanish Fork is growing at a healthy pace, the demand for rentals is growing. So if you buy a property in this region, you’ll have no issues finding tenants.
One of the best ways to rent out a property in this region is to find a reputable property management firm to help you out. All you have to do is buy the property and they’ll handle everything related to renting it out, from tenant screening right through to regular inspections to protect your investment.
Investment Property in Utah Is Hot!
If you’re looking for property in Utah to invest in, make sure you check out the places we’ve just mentioned in this post. All of the places we’ve talked about have growth potential, and we particularly like the look of Spanish Fork as a wildcard to look into!
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