We went through a real roller coaster ride the past couple of years mainly because of the pandemic. It would be a huge understatement to say that it has upended the way we do things in the real estate industry and has caused some major disruptions and setbacks in many people’s plans. Considering how crazy the market was in 2020 and 2021, here is the Utah housing market forecast 2022 edition.
5 Things Investors Should Know About the Utah Housing Market Forecast 2022
Despite the wild 2021 ride we all took – inflation, a spike in gas prices, and a persistent global health crisis – 2022 is looking to be another unique year for the Utah real estate market. It has been one of – if not the most – competitive markets in the US in 2021. And it looks like that trend is not going to end any time soon.
Realtor.com has predicted that the Salt Lake City region will be the top housing market in the country for the year with an anticipated price and sales growth of 8.5% and 15.2% respectively. This gives us a 23.7% combined overall growth rate This projected growth puts them ahead of other booming markets like Boise City ID, Spokane WA, and Indianapolis IN.
Industry experts and analysts have recently released their different takes on various US housing markets. Here are some of the Utah real estate market trends 2022 will bring our way:
1. Rates will have a slight increase but will still be affordable
Over the past several years, Americans have been treated to – near spoiled, actually – by very low-interest rates. With rates hitting record lows of 2%, things are about to change in 2022 as recent trends on 30-year fixed mortgages have already come very close to 3%.
NerdWallet reports that 2022 will see a low end of 3,4% according to Fannie Mae and will reach 4% by the end of the year as predicted by the Mortgage Bankers Association. These two organizations along with Freddie Mac and the National Association of Realtors predict that rates will steadily rise throughout 2022. And while the days of sub-3% rates are gone, they are not expected to go exorbitantly high.
2. Home prices will also increase but not as fast as they did in 2021
Utah has had quite a long history of rapid acceleration where house prices are concerned. Since the pandemic began, housing prices in the Beehive State have skyrocketed to the point that more than 50% of households can no longer afford to buy median-priced properties in the state.
If one were to understand what the Utah housing market forecast 2022 is implying here is that renters are facing bigger challenges of acquiring their own properties. Even before COVID swept across the world, the Utah housing market was already out of reach for 63% of renter households. 2020 further increased that number to almost 73% as median home sales prices reached $380,000. Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho.
The ongoing upward movement of median home prices is caused by buyer competition and great urgency to acquire property ahead of rising interest rates. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. So players should expect to see both challenges and opportunities in 2022.
3. Expect more players to enter the Utah housing market
The ones who are truly making money in real estate in Utah are the investors. According to the Utah real estate market predictions from industry experts, there will be an influx of sellers in the state given the present condition of not having enough supply to meet the market’s unprecedented growth. With the low amount of inventory, sellers will continue to enjoy multiple offers, with some buyers willing to fork over way above market price to beat out other potential buyers.
The competition has been made even tougher since the pandemic started, with people from California and Colorado making their exodus to the Beehive State in search of more affordable housing along with a good educational system and a lower cost of living.
However, because of the growing number of migrants in the state, Utah is now faced with what experts say is a severe imbalance in its housing market. Several people claim that hedge funds, investors, and cash buyers are to blame for this lopsidedness. While that remains to be seen, what’s clear is that demographic tailwinds will keep the demand for housing robust this decade.
4. Buyer creativity and resourcefulness will be tested
The Utah housing market forecast for 2022 anticipates that more and more people will be on the lookout for property to purchase. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. It will test their mettle and resolve as it will be an exercise in decision-making and patience.
Despite the expensive prices, the inventory cannot keep up with the growth pace. Just to give you an idea, Utah Association of Realtors president Dave Robison said that in-migration is hugely impacting Utah real estate. According to him, about half a million Californians browsed the website UtahRealEstate.com in search of property to buy.
Half a million people from one state alone. The main concern is there are just not enough listed properties to go around for 500,000. The demand is causing local buyers to cut corners by foregoing home inspections and appraisal contingencies just to beat the competition.
5. The Utah real estate market predictions is not just a bubble waiting to burst
One of the most common myths going around about the Utah housing market forecast for 2022 and its present market is that it is just a bubble waiting to burst.
A bubble is highly unlikely at this point in time because a bubble is defined as a prolonged period of actual price decline, not moderation or deceleration. Historically, brief and prolonged price declines in Utah went hand in hand with joblessness and recessions, both of which don’t seem likely in the next two to three years. At the very least, folks can expect some sort of moderation over the next few years but not a decline.
The 10 Best Real Estate Markets in Utah for 2022
Real estate investors number by the thousands in the US. Their goal is mainly to make a profit from investing in real estate but each of them has different approaches and strategies to achieve their goals. Some investors flip houses, others wholesale them. Some buy-and-hold while others enter the rental market for passive income.
Given the Utah housing market forecast 2022, here are the top real estate markets any wise investor can add to their real estate portfolio. Please note that while we have included updated and accurate Airbnb data from Mashvisor, each city and county have different rules and regulations about short-term rentals. If you are investing in real estate properties to rent out as vacation homes, find out the short-term rental laws in the city and county you’re considering.
1. Midway, Wasatch
- Median Property Price: $2,114,833
- Price per Square Foot: $629.04
- Price to Rent Ratio: 151.18 (high)
- Monthly Traditional Rental Income: $1,165.72
- Traditional Cash on Cash Return: 1.77%
- Average Airbnb Daily Rate: $238
- Monthly Airbnb Rental Income: $4,991.07
- Airbnb Cash on Cash Return: 0.44%
- Airbnb Occupancy Rate: 39.37%
- Walk Score: 52
- Top Investment Properties for Sale in Midway
Wasatch County makes its way to our Utah housing market forecast for 2022 because it has attracted big-city folks from San Francisco and New York for relocation. For this reason, despite the high median property price, investors in rental properties are most likely to enjoy very good returns.
2. North Ogden, Weber
- Median Property Price: $572,636
- Price per Square Foot: NA
- Price to Rent Ratio: 27.41 (high)
- Monthly Traditional Rental Income: $1,740.91
- Traditional Cash on Cash Return: 1.69%
- Average Airbnb Daily Rate: $101
- Monthly Airbnb Rental Income: $2,211.90
- Airbnb Cash on Cash Return: 1.27%
- Airbnb Occupancy Rate: 69.08%
- Walk Score: 57
- Top Investment Properties for Sale in North Ogden
3. Ogden, Weber
- Median Property Price: $465,143
- Price per Square Foot: NA
- Price to Rent Ratio: 37.05 (high)
- Monthly Traditional Rental Income: $1,046.09
- Traditional Cash on Cash Return: 0.71%
- Average Airbnb Daily Rate: $107
- Monthly Airbnb Rental Income: $2,461.65
- Airbnb Cash on Cash Return: 2.91%
- Airbnb Occupancy Rate: 64.81%
- Walk Score: 42.83
- Top Investment Properties for Sale in Ogden
4. Orem, Utah
- Median Property Price: $582,355
- Price per Square Foot: NA
- Price to Rent Ratio: 30.48 (high)
- Monthly Traditional Rental Income: $1,592.30
- Traditional Cash on Cash Return: 1.82%
- Average Airbnb Daily Rate: $135
- Monthly Airbnb Rental Income: $2,900.74
- Airbnb Cash on Cash Return: 3.53%
- Airbnb Occupancy Rate: 59.18%
- Walk Score: 34.2
- Top Investment Properties for Sale in Orem
5. Payson, Utah
- Median Property Price: $456,119
- Price per Square Foot: NA
- Price to Rent Ratio: 27.87 (high)
- Monthly Traditional Rental Income: $1,364
- Traditional Cash on Cash Return: 1.44%
- Average Airbnb Daily Rate: $113
- Monthly Airbnb Rental Income: $3,014.54
- Airbnb Cash on Cash Return: 3.74%
- Airbnb Occupancy Rate: 66.53%
- Walk Score: 80
- Top Investment Properties for Sale in Payson
6. Provo, Utah
- Median Property Price: $566,338
- Price per Square Foot: $308.71
- Price to Rent Ratio: 33.44 (high)
- Monthly Traditional Rental Income: $1,411.15
- Traditional Cash on Cash Return: 1.79%
- Average Airbnb Daily Rate: $156
- Monthly Airbnb Rental Income: $2,150.69
- Airbnb Cash on Cash Return: 2.17%
- Airbnb Occupancy Rate: 57.78%
- Walk Score: 88
- Top Investment Properties for Sale in Provo
7. Salt Lake City, Salt Lake
- Median Property Price: $607,875
- Price per Square Foot: $289.78
- Price to Rent Ratio: 36.57 (high)
- Monthly Traditional Rental Income: $1,385.25
- Traditional Cash on Cash Return: 0.72%
- Average Airbnb Daily Rate: $118
- Monthly Airbnb Rental Income: $2,859.70
- Airbnb Cash on Cash Return: 2.24%
- Airbnb Occupancy Rate: 68.52%
- Walk Score: 48.4
- Top Investment Properties for Sale in Salt Lake City
Mashvisor’s Utah housing market forecast 2022 and pretty much all other real estate forecasts for the year have identified Salt Lake City metro area as the country’s hottest housing market-beating other burgeoning areas like Boise ID and Spokane WA.
8. Sandy, Salt Lake
- Median Property Price: $1,199,292
- Price per Square Foot: $618.44
- Price to Rent Ratio: 51.22 (high)
- Monthly Traditional Rental Income: $1,951.20
- Traditional Cash on Cash Return: 1.2%
- Average Airbnb Daily Rate: $129
- Monthly Airbnb Rental Income: $3,282.85
- Airbnb Cash on Cash Return: 2.24%
- Airbnb Occupancy Rate: 67.48%
- Walk Score: 13
- Top Investment Properties for Sale in Sandy
9. Santa Clara, Washington
- Median Property Price: $824,094
- Price per Square Foot: $317.01
- Price to Rent Ratio: 39.32 (high)
- Monthly Traditional Rental Income: $1,746.36
- Traditional Cash on Cash Return: 1.35%
- Average Airbnb Daily Rate: $374
- Monthly Airbnb Rental Income: $3,850.80
- Airbnb Cash on Cash Return: 3.56%
- Airbnb Occupancy Rate: 44.88%
- Walk Score: 20
- Top Investment Properties for Sale in Santa Clara
10. St. George, Washington
- Median Property Price: $675,060
- Price per Square Foot: $289.15
- Price to Rent Ratio: 36.68 (high)
- Monthly Traditional Rental Income: $1,533.51
- Traditional Cash on Cash Return: 0.92%
- Average Airbnb Daily Rate: $158
- Monthly Airbnb Rental Income: $2,386.10
- Airbnb Cash on Cash Return: 1.63%
- Airbnb Occupancy Rate: 55.97%
- Walk Score: 64
- Top Investment Properties for Sale in St. George
The Bottom Line
We hope that by publishing this Utah housing market forecast 2022 edition, we have shed some light and provided insight into some of the questions and concerns prospective investors and buyers may have. To ensure a good return on investment, we encourage real estate investors to perform their due diligence and seek out the help of local Utah real estate professionals. You can find some of the most distinguished and reputable real estate agents using Mashvisor’s real estate agent directory.
Mashvisor is a website that offers real estate investors access to several tools and a wide range of updated and accurate data to help make the process of finding a suitable investment property faster and easier. Sign up now for a free 7-day trial and get 15% off on your subscription.