The hottest investment target in the US is the one you never thought of

The corona plague has intensified trends in demographic change across the U.S., and young people have begun to discover the charm of the state of Utah and the capital city of Salt Lake City.

Uri Tzurur, guest column

25/05/2022

Wednesday, 25 May 2022, 08:06

• Share on Facebook

• Share on WhatsApp

• Share on Twitter

• Share on Email

• Share on general

• Comments

  Comments

If you're just planning your big trip to the US, you'll probably want to visit Utah's capital city - Salt Lake City. With its many attractions and national parks, the city has long since become an American icon, -An innovative and a pilgrimage center for big-tech companies, such as Microsoft, Google, and Adobe and even for financial entities such as Goldman Sachs and Fidelity, right in the middle of the desert.

The business boom, which also directly affects the real estate market in the state of Utah, can also be explained by a broader demographic phenomenon - a steady and consistent population shift in recent years to the mountainous states of the western United States, Utah, Colorado, and Idaho. Convenient to nature.

During the period of the Corona plague, which proved to many workers and employers that it is also possible to work remotely, these processes intensified and is expected to continue accelerated demographic and economic growth over the coming years in mountainous countries, especially in Utah.

The positive migration also stems from evolving employment opportunities, high quality of life, and relatively low cost of living for major cities located along U.S. shores, making them a preferred destination for investors.

Good to know (promoted)

Defeat the pain without fear: B-Cure laser in an unprecedented trial operation

Served on behalf of Bee Cure Laser

Eager and vibrant.

Salt Lake City (Photo: ShutterStock)

Therefore, it is not surprising to find the capital of Utah, Solek Lake City, at the top of the list of growing cities in the US in the last decade, with a 13.7% increase in population. At the same time, data on apartment and rental prices are skyrocketing, with a 79% increase in housing prices and a 37% increase in rents over the past five years. Ideal for investors, as it is characterized by a high rate of tenants, and occupancy, even in the large housing clusters, stands at 98% on average.

The high rises in U.S. real estate prices during 2021 were more pronounced in Salt Lake City, with the city currently suffering from real estate shortages and the need to build tens of thousands of new housing units. As of the fourth quarter of 2021, Salt Lake City's rental market Is one of the markets where rents were higher than 20% compared to the previous year.

The housing crisis - even in the US

Today, more than half of Utah households can not afford to buy an apartment, leaving them with the rental option alone, and accordingly contributing to increased demand for rental housing as well as rising rental prices.

Also, according to a Newmark report, Salt Lake City's multifamily market is one of the top ten markets in the U.S., by examining the NCREIF Property Index Annualized Total Returns.

Apartment complex in Utah.

Distress similar to Israel (Photo: Yachz)

Although Utah's strong market is attracting many investors, the current expectation is that due to high barriers to entry, a shortage of working hands and high raw material prices, the pace of construction will not be able to keep up with demand.

In a sense, the Salt Lake City housing market can be compared to that of Israel, since the land reserves available for construction are relatively limited due to the mountainous terrain route in this area, the birth rate in Utah is highest in the US, and the economy is characterized by a developed and growing high-tech sector.

The young people's solution: work from home and closeness to nature

Uri Tzurur (Photo: Yachz)

Young people continue to flock to Utah, which was selected by Hachman Index magazine as the country with the most diverse economy in the U.S. Huge, and established as a target for innovative technology companies, biotechnology companies, and innovation centers.The population of the country, accordingly, is among the most educated in the US, with a rate of 48% holding advanced degrees.

It is not just old and large companies that are flocking to the country.

According to financial information firm PitchBook, during 2021, investors poured more than $ 3.4 billion into Utah-based startups, double the capital invested in 2020.

The return to the bustling urban centers is in full swing, as opposed to moving away towards the suburbs that occurred during the Corona period.

This trend is also giving its signals on the Utah capital, with young people having a preference for places close to work and places of recreation and leisure.

Metropolitan Solke Lite City provides this experience to employees, with a combination of plenty of jobs, entertainment options, academic institutions, and advanced infrastructure.

These reasons, coupled with the rising trend in real estate prices in the country, create the feeling that Utah will continue to strengthen its position as a sought-after real estate market, attracting many young people and entrepreneurs, who come not only to visit the desert city but also to buy a home or invest in real estate. N. At the current point in time, a window of opportunity has been created in the Utah real estate market, which will continue to flourish over the next few years, until supply meets demand.

• Real Estate

• Sand

Tags

• jute