Real estate remains the top investment for 33% of Americans for the past ten years, a Gallup survey shows. While most homebuyers would think of Texas and Florida to invest in a property, this article will discuss a rare, hidden gem for real estate investors, i.e., Utah. The Beehive State is known for its stunning landscapes and strong economy. But did you know about a variety of investment opportunities available here?
Many tourism-friendly Utah cities, such as St. George, have home prices up by almost 6% as of last year. However, we’ll discuss a lot of other factors, too, showcasing the potential for real estate investment in the State. So, here’s why you should consider investing in Utah properties.
⦁ Vacation Rentals Are On-Demand
The gorgeous state of Utah isn’t just blessed as a migration magnet, but many visitors arrive here and enjoy different outdoor activities. Some of these amazing outdoor adventures include:
- Rock climbing
- Mountain biking
- Hiking and skiing
- White-water rafting
- Camping and picnicking
This access to outdoor recreational opportunities makes Utah a desirable location for second homes and vacation properties. Moreover, the city of St. George hosts numerous events and festivals, bringing in additional visitors who require fine housing for week-long accommodation.
As per reports, Washington County saw a 75% spike in tourism revenue last year. You should consider investing in fractional ownership of rental properties in Southern Utah as well. Go online, and you will find a lot of vacation homes in St George Utah, available for small-time real estate investors.
⦁ Utah’s Population Is Growing Fast
Utah’s population growth is slow but steady. It grew by 120,000 people between 2020 and 2022. This shows Utah’s potential for stable real estate investment. Even though Utah today is home to around 3.3 million people, this population can exceed 3.8 million by 2030.
That’s why Utah is considered one of the best real estate markets in the country right now. More and more homeowners will head to this amazing state to find a living space for their families.
You can easily sell your house for a profit in a few years and make ample ROI in Utah.
⦁ America’s Best Economy Right Now
Utah has a diverse and resilient economy with job growth in many sectors. It has a stable economy, as per different studies. In fact, some experts deem Utah to be the best-performing economy in the U.S. in the last fifteen years. That makes it an attractive place for property investment.
Moreover, Utah provides a business-friendly environment to major corporations worldwide, attracting many employees migrating to this beautiful state to land their dream jobs.
You can offer these employees ample residential opportunities.
⦁ Utah Offers An Affordable Lifestyle
It is estimated that housing in Utah is 2% higher while utilities are 7% cheaper than the national average. Utah offers an excellent quality of life, attracting residents and, in turn, real estate investors. A family needs $43,000 to $66,000 a year to live a normal life.
The number of renters in Utah increased significantly between 2010 and 2020. So, a high demand for these rentals can provide a steady stream of income for property investors.
⦁ Tourism Thrives In The Mormon State
Not only St. George but the entire state of Utah is riddled with several tourist attractions. Utah’s many beautiful landscapes and national parks welcome more than 11 million tourists from around the globe in a given year. Tourists need a place to stay, and this accommodation mostly comes in the form of fine vacation rentals.
Whether tourists are sightseeing in the Big Five, Lake Powell, or Salt Lake City, vacation rental property managers make a decent profit from them.
⦁ Benefit From The 1031 Exchange
Leverage the 1031 exchange when investing in the Utah real estate industry for significant tax breaks. Here’s how this works: You sell one investment property in exchange for a similar property elsewhere, deferring capital gains taxes. Just bear in mind vacation rentals aren’t eligible for this tax break.
Also, talk to a tax attorney when indulging in this like-kind exchange. Your replacement property needs to be identified within 45 days and purchased within 180 days. That’s how you will save a huge amount on taxes and reinvest more capital into your new Utah real estate investment.
Furthermore, along with S. Carolina, Utah has the sixth-lowest property taxes in the country.
⦁ Outstanding Educational Options
Many students head to Utah to benefit from the state’s amazing academic opportunities. Even today, many renowned universities draw students and faculty to Utah who often need housing solutions. The state of Utah also has the third-highest educational attainment rate in the United States.
You can expect a steady source of rental income from these teachers and students after buying Utah real estate in 2023. As long as out-of-state students in Utah require living spaces, you won’t be out of customers.
⦁ The Crime Rate Is Incredibly Low
Many families, retirees, and investors looking for safe neighborhoods find solace in learning that Utah has a very low crime rate. In general, Utah’s violent crime rate is lower than the national average. But, sadly, the Beehive State has a higher property crime rate.
You can overcome this problem by protecting your property in St. George from vandalism. Invest in a quality security system, put up a fence, landscape strategically, install motion sensors, and upgrade all the locks. That’s how you can secure your real estate investment in Utah.
Conclusion
Whether you’re a seasoned investor or just starting to dip your toes into the world of real estate, Utah is the right place to start your journey into this highly competitive industry. Utah’s population is growing, and it’s a major educational center, offering students and families a high quality of life with a low crime rate.
These factors make it a prime real estate spot for real estate investors. So, consider buying vacation rental properties in Utah, and don’t let this amazing investment opportunity slip by your hands.
