Salt Lake City Tops List of 2021 Markets to Watch

Salt Lake City has topped the list of the medium-sized markets to watch in 2021, according to a new research from Zonda. The market has a lot to offer, according to the report. Low crime rates, good schools, outdoor activities and affordability are all converging to drive people to the market.

“We have seen a lot of employment growth throughout the Greater Salt Lake market. There is the Silicon Slope area, which is a massive tech hub that has been building up over the last couple of years,” Eric Allen, regional director for Utah and Idaho at Zonda, tells GlobeSt.com. “That has brought a ton of new jobs here, and people are leaving the coastal markets and bigger cities and coming here for jobs. In addition to jobs, we have a lower cost of housing, a good quality of life, lighter traffic volume and outdoor recreation. That has been a big attraction.”

The pandemic has actually helped to accelerate growth in the market, as it has in other secondary growth markets like Phoenix and Las Vegas. Remote work has helped encourage more people to move to the market without the promise of a job. “Prior to COVID, we were already starting to see the work-from-home concept growing or work-from-anywhere concept. When COVID hit, it exacerbated that change. With that being more common and the ability for people to live anywhere, people are choosing Salt Lake,” says Allen.

Homebuilders are following the migration pattern. Developers have reported that 40% to 60% of homebuyers are moving from out-of-state, and 30% of home sales are in all cash. “We talked to a lot of our builder clients, and a lot of people are selling out of expensive homes in California and bringing all of that equity here,” says Allen. “You can get a lot of house for half of the price that they would in those larger markets.” California is the top market for inward migration, although Allen also says that they are seeing strong activity from all major West Coast markets, including Portland and Seattle.

In addition to these fundamentals, Allen adds that the market diversity is also supporting longevity. “We aren’t attracting one specific type of person or company,” he says. “That is why there has been so much growth. It is a combination of several market trends coming together, and I think that is why we are continuing to see the large amounts of growth.”