CityHome Collective, one of Salt Lake City’s premier real estate firms, has an ample supply of listings to look over. The firm has enjoyed a stable market even during the COVID-19 pandemic. So has the city, unlike many other comparable cities around the country.
One look at the numbers demonstrates that Salt Lake City is beating the odds with a growing housing stock. Among the 50 largest metro areas studied by Redfin, only two have seen a larger increase in supply this year. Salt Lake City is one of them; Phoenix is the other.
A Look at the Numbers
Redfin recently looked at 50 metropolitan areas to see whether or not housing stock remains strong. What they discovered might not be a surprise. For example, San Francisco has experienced the steepest decline in annual growth. A year ago, the city was looking at a 107% increase. This year, their stock has increased just 32%. Boston’s growth fell 66 percentage points to 31% while Detroit’s 13% represented a drop of 56 percentage points.
In Salt Lake City, stock was up 66% through the first part of 2019. That number has jumped to 72% this year. If you do not understand the numbers, here is what you need to know in a nutshell: the number of available houses in Salt Lake City is higher than it was in 2019.
Such positive numbers invite some sort of explanation. Unfortunately, there isn’t just one thing we can point to. CityHome Collective suggests several possibilities, all of which might be contributing factors:
A Stable Economy
Real estate is an industry that very much depends on the overall economy. If a builder is looking to develop a new project consisting mainly of condos and townhouses for instance, the economy must be strong enough to support buyers. The same goes for luxury housing.
When the economy is depressed, buyers do not have as much money to spend. That’s when demand for luxury homes and condos tends to fall. The thing about Salt Lake City is that its economy has steadily grown over the years. It is as strong today as it has ever been.
An Influx of Jobs
Another thing Salt Lake City has going for it is a steady influx of jobs. Between relocating companies and a number of startups, the area is attracting skilled workers from all over the country. And where skilled workers increase, so does housing demand. It is simple math.
In many of the metro areas studied by Redfin, jobs are not nearly as abundant. Cities like San Francisco, Boston, and Detroit aren’t attracting skilled jobs in large numbers. If anything, they are losing them. Where jobs are lost, housing demand falls.
You cannot talk about increased housing stock and not mention builders. After all, they are the ones doing the actual work of increasing supply. Builders have to be willing to invest their time and resources if housing stock in a given area is to increase. They have done just that in Salt Lake City.
Builders have found Utah to be generally attractive to new home construction. They are especially sweet on Salt Lake City thanks to the economy and jobs picture. As a result, there is no shortage of builders willing to invest in the area.
Salt Lake City is doing quite well with housing stock. The data proves as much. Builders are willing to build, companies are relocating, and workers are coming to the region in ever-growing numbers. It is a recipe for success that other cities would love to experience.