Utah real estate agents continue to adapt to an ever-changing market. For many years, Utah has been unique in its great western location without the high prices of neighboring states like California. In fact, having a cheaper cost of living than California has given Utah a special economic advantage. Unfortunately, Utah is also struggling with some of the same problems as the Golden State, such as overcrowding and rising home prices. However, Utah currently has a low unemployment rate of 3.2% for 2017 and part of 2018.
How is overcrowding affecting Utah? Well, not having enough housing means that there is a higher demand, and there is a real danger that overbuilding will reach the mountain and lake areas, which would mean that the number of people looking for housing would have exceeded the amount of space available . While this may be good news in the short term for Utah realtors, it may not sit well with the state as a whole in the big picture.
If people living in Salt Lake City, Utah’s capital and largest city, are forced to move further afield, it could also be dangerous for the local economy. Salt Lake City homes are already experiencing big differences: Homes are selling for as little as 200,000 or more than a million. Salt Lake City real estate agents may need to focus on accommodating the number of people living in the area. One thing they can do is perhaps focus on building more multi-family units, although this is a problem that Utah real estate agents may not be able to solve on their own.
An ongoing problem in Utah and across the country appears to be the rising cost of living. Homes for sale in Salt Lake City, as well as rental units throughout the state, are experiencing a higher price than ever. Meanwhile, with low unemployment, wages are stagnant. This presents a problem when homes for sale in Salt Lake City exceed the income of the average worker and people begin to move further afield. If this problem gets too extreme, Salt Lake City realtors and Utah realtors in general will have a lot of work ahead of them.
Unfortunately, experts do not predict a reversal of these trends in the short term. In fact, homes for sale in Salt Lake will likely continue to get more expensive. How the salary situation will change is also debatable with no clear end in sight. Technological changes will undoubtedly have an effect on things; For example, the Internet has become increasingly popular in the last two decades, and in more recent years, smartphones have taken over the industry.
Now when looking for an apartment or house, you can go to Craigslist or just Google “Salt Lake City homes for sale” or “slc homes for sale” and find real Salt Lake City homes for sale right there on the internet. Or you can type in “Utah real estate agents” and connect directly with someone. The possibilities are endless.
Ultimately, the situation goes where the economy takes it, and a lot of this depends on the government and the decisions they are making. However, the Salt Lake City housing market will likely remain high. People will continue to search online for “slc homes for sale” in hopes of finding some affordable Salt Lake homes for sale.
However, with the increase in population over the past two decades, the cost of living is increasing in large part due to the cost of housing. And if real estate continues to rise, Utah real estate agents and brokers may find themselves in the crosshairs if they face another explosive market cycle.