Utah is one of the most popular states in the United States of America. The main thing that makes it popular is its boundaries. It is linked to Arizona and Coronado by its east and south border respectively. It also touches New Mexico as well by its southeast side. Its geographic location is the main thing that makes the Utah short term rental market a superb place for investing and earning big profits.
Though Utah is a landlocked state in the USA, it never means that it doesn’t have some remarkable landscapes to attract tourists. In Utah, tourism has been increasing continuously. This is leaving a positive impact on the Utah increasing the occupancy rate and return on investment ratio. Since 2015, there is a 5.1% increase in tourism in Utah every year.
The only time when there is lower tourism than the previous year is 2020. Travel restrictions due to the Coronavirus pandemic are the major reason behind a decrease in the tourism rate. However, it has been now recovering quickly and so does the Utah real estate market. Furthermore, there are many chances of a decrease in prices of the short term rental properties in Utah making it easy for investors to buy them off-season and earn big profits when visitors start arriving.
AirDna: Data Analysis of the Utah Market
Utah is a state, where the housing market has never faced some major blows. The Utah will be hot in the future as well, especially in some most frequently visited cities such as Salt Lake City, etc. You can invest there and earn big profits.
The average monthly rental income is about $3238.
The total occupancy rate is more than 60%. However, it will be higher in the touring seasons and will touch peaks in the most visited areas such as Salt Lake City.
The average daily rate is $248.
The total number of listings or rental properties is more than 9000.
The available number of rental properties for sale is 1089.
The median Property price is $1,007,657.
The average price per square foot in Utah is $575.
The cash-on-cash return ratio is around 2%.
Top Places to Invest in the Utah Short Term Rental Market
Only knowing that Utah is a top touring spot will not urge you to invest money in its real estate market. You will be willing to know the places in Utah where you can have more opportunities than in other regions. You will also prioritize those places in the Utah that are more beneficial. Therefore, you need to explore some top places in Utah that are suitable for rental investment. For your convenience, we have shortlisted these places with their rental data analysis. Let’s go through them.
1. Salt Lake City
This is the most populous and capital city of Utah. Being a major city of the state in every term, it is vital in the Utah as well. A lot of visitors come to see this amazing place along with the Great Salt Lake. The Salt Lake City data analysis reflects how beneficial investing in this market could be.
The average occupancy rate is 77.
The average daily rate is $150.
Rental demand is 88 and 86% of it is for entire homes only.
Rental growth is 17%quarterly development.
RIO ratio is 2.18%.
The median price for the property is about $ 525,000.
Charleston is a small, census-designated town in Wasatch County. Following is the Charleston data analysis. It will describe the true earning potential via rental business in this small town.
The average occupancy rate is around 50 percent, but it will be high on vacations due to a lot of tourists in the town.
The average rental income is $5080.
The median price of the property is $ 1,350,000.
The average area of the rental property is about 1879 square feet.
The RIO ratio is around 1.92%, which is pretty acceptable.
*Fun fact: You can hover over any date to get a rate analysis for your market. Try it out for yourself!
3. Boulder
Boulder is a small town in Garfield county. Though it is small, it is a major part of the Utah market.
The average occupancy rate is 71%.
The average daily rate is $252.
The average rental income is $7189.
The median property price is around $ 550,000.
RIO ratio is at a staggering value of more than 9%.
Low median property price, high rental income, and exceptional RIO ratio are the things that make the Boulder market an important part of real estate in the state.
Cleveland is a small town in Emery county of Utah, United States. September, June, and May are the most prominent months in the Cleveland as these are touring months and a lot of people travel towards this town.
The average occupancy rate is 62%.
The average rental income is $3247.
The median property price is $ 120,000.
The average area of rental property is 1734 square feet.
The return on investment ratio is 2.59, which is very good.
This is a small city in Northwestern Washington county. It is more of a farming community than a city. Corn fest, mountain meadows, and ancient Spanish trials are the key things that are driving the Enterprise market by attracting people to spend their vacations in this farming community.
The average occupancy rate is 60% which will be higher in touring months and will exceed 80% quite comfortably.
Huntsville is an averagely populated town in Webber Community. The best thing that is rising the Huntsville market is the location of this town. Several amazing monuments and landscapes are at a distance of a few miles from this town. You can quickly reach a Lake, some top ski resorts, and different other places in 10 to 15 minutes when living in this town.
The average occupancy rate in Huntsville is around 53% which will be 77% in February.
The average daily income is almost $2910.
The median property price is $ 834,500.
The average daily rate is pretty high as it’s more than $300.
After going through some top places for investment in the Utah short term rental market, it’s time to select those that are more suitable for you. Your ideal pick must be those properties that have lower median property prices and high occupancy and the RIO value. What about investing in all of the above places, you will earn a lot.
