The Salt Lake City real estate investing market continues to sizzle, thanks to an ever-growing pool of renters fueled by an expanding population, job growth and a high-quality lifestyle.
This explosive growth has created an affordability problem for homebuyers in an extremely competitive market, but Salt Lake City remains one of the cheapest options for renters and investors in the West, compared to cities such as Los Angeles and San Francisco.
Hosting the 2002 Winter Olympic Games put Salt Lake City on the national map, and as it prepares to host the Olympics again in 2034, the market remains attractive for new and experienced real estate investors. Here’s a look at the Salt Lake City real estate investing market to help you decide if it fits in with your financial goals.
Why Invest in Salt Lake City?
The must-follow annual report from PricewaterhouseCoopers and the Urban Land Institute on the top real estate markets to watch places Salt Lake City at No. 9 in the U.S. for 2025, even as its local housing market faces affordability challenges.
The population of the Salt Lake City-Murray metro area grew 20% over the last decade, and its growth is expected to continue. The Ken C. Gardner Policy Institute at the University of Utah projects the state to grow by more than half a million residents between 2024 and 2033, with many of those new Utahns settling into the Salt Lake City area.
The expanding population is drawn by a robust job market. Unemployment is at 3.5%, which is lower than the national average, and the low rate is expected to continue as jobs in technology, health care, construction, finance, insurance and administrative services are poised to lead the way.
Promising cheaper living than other metropolitan areas in the West, Salt Lake City offers a high quality of life, encouraging tenants to stay long term for the mix of urban amenities and outdoor recreation. Because of the balanced lifestyle coupled with good schools and infrastructure, investors often see more predictable income and less tenant turnover.
Whether you’re considering single-family home rentals or Salt Lake multifamily investing, the region continues to be a hot market.
Salt Lake City Housing Market Trends (2024–2025)
- Median home price: $585,000 in June 2025, down 6.4% year over year
- Median days listed: 21 in June 2025, down 3% year over year
- Impact of interest rates on buying activity: Rates hovering just under 7% affect affordability, increase prices, slow sales
- Rental vacancy rate: 6.1% in April 2025, down 1.61% year over year; demand for housing remains elevated
Rental Market Outlook
- Average rent by property type: 52% of households in Salt Lake City are occupied by renters. Average rents as of July 2025 were $1,299 for apartments, $1,600 for condos, $2,337 for houses and $700 for rooms monthly.
- Cap rate and ROI benchmarks: The average cap rate for all property types is 5.70%, with 6% to 8% ROI.
- Local landlord regulations and licensing: The environment is favorable to investors. All residential rental properties require a license, and participating in the Salt Lake City Landlord/Tenant Program can discount licensing fees per unit up to 95%.
- Tenant demand and retention factors: Job and population growth continue to drive demand for rentals, and the natural amenities coupled with a price-to-rent ratio of 25.6 make Salt Lake City attractive to renters.
Best Neighborhoods for Real Estate Investment
The area’s robust economy, underpinned by the tech and health care industries and complemented by academic institutions, makes the Salt Lake City rental market prime for real estate investing.
If you’re looking for the best neighborhoods, there are many.
You can buy in the Sugar House neighborhood, which offers historic residences, or choose a home in the The Avenues, which provides a mix of historic and contemporary homes. You could also buy into Salt Lake City’s downtown core, with its vibrant nightlife and choice dining against the backdrop of the Wasatch Mountains.
Other choice areas include:
- Draper: Featuring townhomes and cottages
- Holladay: Luxury amenities, cottages and ranches near ski resorts
- Cottonwood Heights: Friendly for families
- South Salt Lake: Convenience and popularity meet affordability
- Fairpark: An emerging area with lower median prices
The Salt Lake City metropolitan area offers a range of neighborhood types to deliver the potential ROI you seek.
Risks and Challenges
- Rising home prices vs. affordability: Utah is the ninth most expensive U.S. housing market. Growing less than 1% for the last two years, Salt Lake City property prices were 31% above the national average in June 2025.
- Zoning and short-term rental restrictions: Salt Lake City proper does not allow homeowners to operate short-term rentals. It stepped up enforcement in 2024 with a computer system to track and provide evidence of a rental.
- Natural disaster risk (earthquakes, drought): The Salt Lake City area may be prone to natural disasters and severe weather. Insurance can impact your ROI, but not having insurance could be even worse.
- Seasonality and market cycles: More homes may be available during the summer when more families often choose to move. However, prices also tend to rise because of the increased demand.
Final Thoughts on Salt Lake City Real Estate Investing
If you’re looking for long-term returns, whether as a newbie or as a seasoned real estate investor, the Salt Lake City real estate investing market may be a location to consider.
While home prices float well above the national average, the region’s job and population growth maintain a steady demand for housing. The metro area also continues to draw new residents, since Salt Lake City is one of the cheapest large metro areas in the West. Consider whether investing in Salt Lake City fits into your investment strategy and financial goals.
Frequently Asked Questions
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With strong job and population growth and a competitive housing market, the Salt Lake City metropolitan statistical area (MSA) has risen to one of the nation’s most compelling real estate markets to invest in. Affordability and competition can present challenges, but the region of 1.26 million residents ranks ninth among real estate markets to watch in 2025, according to an annual report from PricewaterhouseCoopers and the Urban Land Institute.
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The Salt Lake City real estate market is showing indications of a housing bubble, with a recent study from Lending Tree rating the city among the top five in the nation with the worst housing crisis outlook. Home prices, which rose significantly after the COVID-19 pandemic, have shown signs of stabilizing, increasing less than 1% over each of the last two years, but a recent study of the housing market from the Kem C. Gardner Policy Institute at the University of Utah tagged Salt Lake County as “severely unaffordable.”
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Whether it’s a good time to buy a home in Salt Lake City depends on your priorities and circumstances, but the “Crossroads of the West” ranks third on the Milken Institute’s annual “Best Performing Cities” report. Job and population growth are among the fastest in the U.S., keeping demand for housing high and median home prices above the national average, with average rents below.
