Utah real estate agents continue to adapt to an ever-changing market. For many years, Utah has been unique for its excellent western location without the sky-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 also finds itself struggling with some of the same problems as the golden state, such as overpopulation and rising home prices. However, Utah is currently looking for a low unemployment rate of 3.2% for 2017 and part of 2018.
How is overpopulation affecting Utah? Well, not having enough housing makes for greater demand, and there is a real danger that overbuilding will reach mountainous 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 bigger picture.
If people who live in Salt Lake City, Utah’s capital and largest city, are forced to move further afield, it could also be treacherous for the local economy. Salt Lake City homes are already experiencing big gaps: homes sell for as little as $200,000 or more than $1 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 Utah realtors may not be able to solve on their own.
A perennial problem in Utah and across the country seems to be the rising cost of living. Homes for sale in Salt Lake City, as well as rental units across the state, are experiencing higher prices than ever before. Meanwhile, with unemployment low, wages are stagnant. This presents a problem when homes for sale in Salt Lake City exceed the income of the average worker and people start moving farther away. If this problem becomes too extreme, Salt Lake City real estate agents and Utah real estate agents in general will have their work cut out for them.
Unfortunately, experts are not predicting a reversal of these trends any time soon. In fact, homes for sale in Salt Lake will likely continue to get more expensive. How the pay situation will change is also debatable with no clear end in sight. Technological changes will certainly have an effect on things; For example, the Internet has become increasingly popular over the past 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 be connected with someone directly. The possibilities are endless.
Ultimately, the situation will go where the economy takes it, and much of this depends on the government and the decisions it makes. However, the Salt Lake City housing market will likely remain strong. People will keep searching online for “slc homes for sale” hoping to find some affordable Salt Lake homes for sale.
However, with the increase in population in the last two decades, the cost of living is increasing in large part due to the cost of housing. And if real estate continues to rise, both Utah real estate agents and brokers may find themselves in the crosshairs if faced with another explosive market cycle.
