If you’re a regular reader of our monthly Utah Housing Market Updates, you’ll already have heard us speak at no end about how current rock-bottom real estate interest rates have skyrocketed buyers’ demand for homes over the past year or so.
Despite our ultra-competitive market boosting median sales prices to highs we haven’t seen in decades, the desire to take advantage of low interest rates and a hot local economy (among other things) to move up in the market has been resolute among buyers in Salt Lake City.
Whatever your motivations for buying property are, whether it’s with the intention to rent it out as passive income or live in the home yourself, we always encourage our clients to view purchasing real estate as an investment.
While almost all of our Utah markets are showing steep increases in value even month to month, our local real estate experience and intuition tell us there are some communities that stand out in particular as more promising investments than others.
With that being said, here are our top picks for the best neighborhoods in Salt Lake City to invest in now.
The Avenues
We love The Avenues for so many reasons, but perhaps most for the area’s fantastic diversity. From its local residents to its city blocks to its types of homes, every aspect of The Avenues is diverse.
Because of the variance in the types of properties on the local market, we’ve seen lots of what we call ‘move-up buyers’ investing here recently. By taking advantage of low interest rates now, buyers are seizing the opportunity to upgrade and upsize their living situations sooner than they would’ve been able to previously.
From a community development standpoint, we know that when that happens, neighborhoods begin to prosper and local real estate economies begin to flourish. If you’re looking to buy a home for you or your family, this is definitely among the best neighborhoods in Salt Lake City to plant roots in.
Downtown Salt Lake City
Most notably among younger people, a popular trend recently has been to flee busier downtown cores for less populous communities that offer larger homes at a lower median price per square foot.
While desire among buyers for properties in big downtown cores like Salt Lake City’s has slowed, so has the incremental increase in the local real estate market.
To be clear, almost nowhere in Utah hasn’t seen the average price of properties increase, however certain regions haven’t accelerated at the same rate as others — with Downtown Salt Lake City one of them.
If you’re considering buying a property downtown, this is one of the best neighborhoods in Salt Lake City for long-term ROI.
Holladay
While certain areas of Holladay have been coveted among buyers in Utah for centuries — namely the infamously luxurious community of Walker Lane — we’ve seen an evident upturn in interest among buyers across almost all areas of this Salt Lake City neighborhood of late.
Although Holladay’s modest population of about 30,000 residents may sound somewhat quaint, Holladay’s close proximity and easy access to busier areas of Salt Lake City mean homes in Holladay offer the perfect respite for regular commuters.
Historically, Holladay’s diverse housing market has allowed buyers of all financial backgrounds to purchase properties here, whether they’re on the entry-level or extravagant end of the spectrum.
While the gauge of what’s considered entry-level pricing may have been acutely adjusted over the past year or so, Holladay’s market still offers a more palatable opportunity to purchase property than other Salt Lake City neighborhoods.
Draper
Rewind just a few decades and Draper was a community primarily made up of farmland and agricultural properties. Today, Draper’s landscape and local community look drastically different.
With over 50,000 local residents (and climbing), both Draper’s population and real estate developments have seen a recent rapid expansion. And, in our opinion, this upward trajectory shows no sign of slowing.
As new housing developments become available with even more planned to start construction on the horizon, the draw of Draper’s new-build real estate market will continue to entice investors to spend here well into the future. If you’re looking to invest in a thriving market at its nascent, Draper is certainly one of the best neighborhoods in Salt Lake City to buy in.
Do you want more detailed real estate investing advice? We know every local market in Salt Lake City inside and out, and can help you make a smart long-term investment today. To get our insider insight on investing in Utah, start by contacting us here.
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