Today, Utah’s capital city is attracting full-time residents, digital nomads and tech companies from around the globe. We spoke with our local office’s Managing Partners, Molly Jones and Joey Sutorius about several key factors impacting Salt Lake City’s current real estate landscape—from its so-called “Silicon Slopes” moniker to its emerging new developments and much more.
What do you think is attracting buyers to Salt Lake City right now?
The lifestyle here is truly unmatched! The city has a bustling major metro system and a really robust job market. Plus, having mountain access within 30 minutes of the city is such a unique selling point.
We’re also a Delta Airlines hub and have an international airport, which makes travel really convenient, as well. So we attract a lot of clientele who work elsewhere but want to live here part-time or seasonally to enjoy the lifestyle.
We get so many buyers who come for a visit or a temporary relocation and end up falling in love and staying after realizing all the unique benefits of a strong economy with so much opportunity.
We’ve been hearing a lot about Salt Lake City’s “Silicon Slopes” area. Can you explain what this region is and how it got that name?
“Silicon Slopes” is a centralized area at the south end of the valley where tech and startups makeup the primary ecosystem. Paying homage to Silicon Valley, Silicon Slopes is a similar community—with the mountain slopes beautifully in the backdrop of the area—that has been responsible for a wave of growth in the area.
We are a very business-friendly economy and many larger tech companies have either moved their headquarters and/or satellite offices here, or started from the ground up. They range from well-established tech giants to burgeoning startups across the realms of retail, healthcare and finance—just to name a few. The prevalence of these companies helps drive a lot of the housing demand and subsequent development.
Can you provide an overview of the current real estate market in Salt Lake City?
Our real estate market has remained quite robust even as interest rates have continued to rise.
We have seen this mostly because as other areas become increasingly unaffordable, Salt Lake City offers a great quality of life in relation to cost of living that is very appealing.
We are still having a lot of influx from other areas, primarily the two coasts. We still have very low housing inventory, and demand outpaces supply, which has made Salt Lake City less susceptible to volatile market conditions.
How has the pricing and affordability of real estate evolved in your market in recent years?
While Salt Lake City is still definitely “affordable” in relation to other cities of similar size and features, our cost of living has gone up significantly, especially as relates to housing cost, in the last few years. This has made it difficult for long-term residents to adapt, as we are still getting upward pressure on pricing due to buyers relocating here.
We have seen smaller units being built and more density downtown to try and adjust, but most cities within the main segment of the valley have seen a lot of growth.
Peripheral areas of the Wasatch Front (North Davis and Juab County) are still much more affordable, but their growth rates have been significant. Areas like Cottonwood Heights and Draper have seen big increases in pricing, as these communities are in super close proximity to the mountains but still have great accessibility to the city.
Are there any notable shifts in buyer preferences or behavior that you’ve observed?
We are still largely a bedroom community, and bigger homes and lots are in high demand in the suburbs. But the trend, especially as relates to luxury, has gone to smaller homes, but still super high-end.
Buyers are appreciating the value of great entertaining space and placing less emphasis on square footage or number of bedrooms. Additionally, accessory dwelling units (ADUs) or other creative ways to monetize parts of the home have become increasingly popular trends.
What advice would you give to potential buyers or sellers in your market based on the current trends and activity?
Just getting into something is the best place to be! Adjusting expectations about area, size, or condition is necessary. Understand that your home doesn’t need to be a forever option, and can serve you well as a stepping stone into your ideal property.
Historically, Salt Lake City has always been an incredible place to invest in real estate, and the sooner you can get into something the easier it is in the long-term to get into your dream property.
Interest rates may be high right now, but continuing to pay rent is equivalent to paying 100% interest, as that is money you have no chance of ever getting back. The sooner you start your investing journey, the better position you’ll be in.
What are some interesting real estate trends you’ve been seeing?
One interesting trend we have been noticing is that the demand for furnished short-term (30-120 days) rentals is extremely high.
With many companies offering temporary work contracts and remote workers coming to enjoy seasonal activities in the area, we are seeing a lot more interest in these types of rentals. This offers a great opportunity for investors to get above-market rates for rentals without the compliance risks that come with AirBnb nightly/weekly rentals.
Additionally, Salt Lake City was just named the preferred city for the 2034 Winter Olympics – this is an incredible opportunity for long-term investors to start getting into our market as our development plans evolve to meet the demand for this!
To learn more about current real estate options and buying property in Salt Lake City, contact Molly Jones and Joey Sutorius.
See below for a few select local listings.
Third Avenue Townhomes
The Price: Starting at $1.5M
The Agents: Molly Jones and Joey Sutorius
The Details: Third Avenue Townhomes represents the first new construction townhome project in the iconic Avenues neighborhood in over 10 years. These modern brownstones are set in Salt Lake City’s most charming and historic area. This community is also the only project in the area with rooftop patios. Interiors feature high ceilings, walls of windows and high-end finishes. Contact Molly and Joey for more information.
The Price: $4.23M
The Agents: Joey Sutorius
The Details: A modern 5-bed, 5.5-bath masterpiece in the heart of Millcreek, this estate presents a light-filled open floorplan, an oversized covered patio plus mountain views. Additional host-ready features include a theatre room, two garages, an extra parking plaza and a landscaped backyard with ample space for a swimming pool or sports court.
The Price: $2.15M
The Agent: Molly Jones
The Details: This 4-bed, 3.5-bath home presents a dream vacation retreat and/or year-round estate in Midway. Currently under construction, this property is scheduled for completion by the beginning of 2024—and the window for customizations is limited. 329 Bern Drive provides picturesque views of Midway and the surrounding mountainscape and is just a 10-minute drive to the Deer Valley Mayflower ski lift, 20 minutes to downtown Park City and boasts immediate access to the best biking trails in the Wasatch Back.
For more available listings, visit TheAgencyRE.com/region/SLC.
