Want to Know Why Utah’s Housing Market is Red Hot? It’s the Economy.

Utah’s real estate market continues to sizzle despite the Covid-19 pandemic and a faltering economy nationwide. One of the prime reasons the market is doing so well is that Utah’s economy has fared relatively well during these trying times. How well? In the Milken Institute’s “Best-Performing Cities 2021” report, three of the top 10 best-performing metro areas are right here in the Beehive State. In fact, the Provo-Orem region topped the list. The Salt Lake metro area came in fourth place and the Ogden region came in a respectable ninth place. The think tank noted, “Large cities in the Intermountain West and South are outperforming many areas on the coasts. … For instance, Salt Lake City moves up 21 spots to come in at No.”

The report also notes, Provo-Orem is a "relatively new innovation center with significantly lower costs than Silicon Valley," and, as a result, the study reports the area has attracted tech firms including Qualtrics, Vivint and SmartCitizen. These companies offer well-paying jobs and people filling those jobs are looking for suitable housing. Couple that fact with historically-low mortgage interest rates and you have the perfect storm for hot market in the dead of winter.

Commenting on the report, Utah Governor Spencer Cox stated, “We’re incredibly heartened by the resilience and economic strength we’re seeing in many Utah cities and towns as the Milken Institute Best-Performing Cities Index shows. We’re optimistic that this trend will continue and expand to all areas of our state.”[1] In fact, in the small cities category, the Institute ranks Logan second and St. George fourth.

Kevin Klowden, executive director of the Milken Institute Center for Regional Economics and California Center, stated, “The pandemic has had an outsized impact on cities where the economic effects of the current recession are exacerbated by high housing costs. By measuring for factors such as jobs, wages, and high-tech growth, the Best-Performing Cities Index offers analysis of how metro areas have fared based on the resilience of their local economy. And by incorporating data designed to gauge inclusivity, it provides important insights into how cities will be prepared to meet challenges and opportunities for future growth post-pandemic.”[2]

Misael Galdamez, senior policy analyst in the Milken Institute Center for Regional Economics, added: “As we discovered through our rankings, cities perform best when they pursue innovative strategies that allow high-tech industries to grow while still providing affordable costs of living. This alignment provides a foundation for metro areas to become more resilient to economic shocks.”[3]

With Utah housing becoming less affordable, thanks to a hot economy, now is the time to buy if owning a home is in your future plans. Whether you’re selling your home or looking to buy, for the best service and experience in the state, get in touch with the team at Emily Hayes Homes Team.

Footnotes

[1] Business Wire, “Provo-Orem, Utah Tops Milken Institute’s 2021 Ranking of Best-Performing Cities,” The Daily Times, 17 February 2021.
[2] Ibid.
[3] Ibid.