Introduction
Salt Lake City is arguably one of the most desirable places to live in the United States. With its affordable cost of living, family-friendly communities, and close proximity to mountains and ski resorts, individuals and families continue flocking to Salt Lake from all over the world.
Even despite the high interest rates, now is still a good time to buy. Mortgage is about equal to the rent one would pay for an equivalent home (which may not be the case much longer if we assume Salt Lake is going the way of the Bay Area, where rents are half that of mortgage for the same home). An investor in Salt Lake City real estate would do well to purchase now and refinance once interest rates drop, whether it’s a primary residence or rented out.
But what is a good property to invest in, and where? What are the current prices buyers should expect to pay for different property types and in different areas of the Salt Lake metro? Which property types are appreciating the fastest? How much should a buyer expect to pay, or a seller expect to receive, and will it most likely be over or under asking?
This report analyzes all sales data in the Salt Lake metro from January 2019 through April 2024 and provides insights on all of the above.
Original List Price vs. Sold Price
Over the last year, properties have been selling for about 3% less than their original list price. This wasn’t the case in 2021 and the first half of 2022 when properties sold for more than asking.
Figure 1: Average Original List Price Vs. Average Sold Price
Property Sales
Overall property sales have declined since 2020, likely due to fewer property owners wishing to sell and therefore less inventory on the market. One common trend is that the number of sales sharply declines in the winter months with a low every January.
Figure 2: Number of Properties Sold Per Month by Property Type
If we break down the number of sales of each property type by city (Table 1), we find that cities where condos and townhomes show relatively higher sales volumes are:
- Salt Lake City
- South Salt Lake
- Cottonwood Heights
Higher sales of condos and townhomes indicate urbanization, densification, and a strong market demand for multi-family housing.
Salt Lake City
- Urban Living: The higher volume of condo sales suggests a preference for urban living, likely due to proximity to workplaces, amenities, and cultural attractions.
- Diverse Housing Options: This city offers diverse housing options catering to different demographics, including young professionals, downsizers, and investors.
- Potential for Development: The consistent sales of condos and townhomes indicate a robust market, encouraging developers to invest in multi-family housing projects.
South Salt Lake
- Affordability: The presence of more condos and townhomes suggests this area might be more affordable compared to others, attracting first-time homebuyers and those looking for lower-maintenance living.
- Transit-Oriented Development: South Salt Lake has good access to public transportation, making it an attractive location for people who prefer to commute without a car.
- Community Amenities: The concentration of condos and townhomes might also indicate well-developed community amenities such as parks, recreational centers, and shopping districts.
Cottonwood Heights
- Mixed-Use Developments: The trend indicates potential growth in mixed-use developments, combining residential units with commercial spaces.
- Appeal to Diverse Demographics: The availability of different property types suggests the area is appealing to a wide range of buyers, including families, retirees, and investors.
- Potential for Investment: Steady sales in condos and townhomes make this city a viable option for real estate investors looking for rental income or property appreciation.
Table 1: Home Sales and Percentage Change by City and Property Type
| City | Type | 2019 | 2020 | 2021 | 2022 | 2023 |
| Cottonwood Heights | Condo | 24 | 12 (-50.00%) | 10 (-16.67%) | 8 (-20.00%) | 5 (-37.50%) |
| SFH | 297 | 219 (-26.26%) | 171 (-21.92%) | 144 (-15.79%) | 118 (-18.06%) | |
| Townhome | 10 | 14 (+40.00%) | 9 (-35.71%) | 9 (0%) | 7 (-22.22%) | |
| Holladay | Condo | 116 | 89 (-23.28%) | 82 (-7.87%) | 57 (-30.49%) | 48 (-15.79%) |
| SFH | 355 | 254 (-28.45%) | 180 (-29.13%) | 156 (-13.33%) | 138 (-11.54%) | |
| Townhome | 32 | 36 (+12.50%) | 39 (+8.33%) | 24 (-38.46%) | 30 (+25.00%) | |
| Millcreek | Condo | 64 | 32 (-50.00%) | 35 (+9.38%) | 32 (-8.57%) | 25 (-21.88%) |
| SFH | 232 | 129 (-44.40%) | 117 (-9.30%) | 77 (-34.19%) | 105 (+36.36%) | |
| Townhome | 24 | 70 (+191.67%) | 46 (-34.29%) | 15 (-67.39%) | 16 (+6.67%) | |
| Murray | Condo | 216 | 131 (-39.35%) | 108 (-17.56%) | 91 (-15.74%) | 80 (-12.09%) |
| SFH | 424 | 301 (-29.01%) | 279 (-7.31%) | 202 (-27.60%) | 158 (-21.78%) | |
| Townhome | 107 | 75 (-29.91%) | 64 (-14.67%) | 44 (-31.25%) | 32 (-27.27%) | |
| Salt Lake City | Condo | 715 | 1037(+45.03%) | 1188(+14.56%) | 775(-34.76%) | 640(-17.42%) |
| SFH | 2064 | 2745 (+32.99%) | 2765 (+0.73%) | 1876 (-32.15%) | 1589 (-15.30%) | |
| Townhome | 146 | 214 (+46.58%) | 259 (+21.03%) | 147 (-43.24%) | 159 (+8.16%) | |
| South Salt Lake | Condo | 29 | 33 (+13.79%) | 33 (0%) | 33 (0%) | 33 (0%) |
| SFH | 146 | 52 (-64.38%) | 75 (+44.23%) | 90 (+20.00%) | 78 (-13.33%) | |
| Townhome | 42 | 25 (-40.48%) | 22 (-12.00%) | 30 (+36.36%) | 22 (-26.67%) | |
| Taylorsville | Condo | 54 | 43 (-20.37%) | 53 (+23.26%) | 30 (-43.40%) | 19 (-36.67%) |
| SFH | 113 | 86 (-23.89%) | 69 (-19.77%) | 52 (-24.64%) | 56 (+7.69%) | |
| Townhome | 44 | 41 (-6.82%) | 26 (-36.59%) | 14 (-46.15%) | 12 (-14.29%) | |
| West Valley City | Condo | 65 | 67 (+3.08%) | 63 (-5.97%) | 36 (-42.86%) | 48 (+33.33%) |
| SFH | 314 | 337 (+7.32%) | 304 (-9.79%) | 249 (-18.09%) | 203 (-18.47%) | |
| Townhome | 99 | 127 (+28.28%) | 87 (-31.50%) | 66 (-24.14%) | 59 (-10.61%) |
Prices
All property types show an increasing trend in the median price per square foot, indicating overall market growth. Condos have the highest median price per square foot, followed by SFHs and then townhomes. The higher price of condos suggests a high demand for urban living spaces and the amenities that usually accompany large multi-family communities.
Figure 3: Median Monthly Price/SqFt by Property Type
Still, SFHs tend to be the most expensive property type, mostly due to the land that buyers own in addition to the improvement (i.e., the home) itself.
Figure 4: Median Sale Prices By Property Type
Appreciation
Since 2019, condos appear to have appreciated the most, closely followed by SFHs and then townhomes. (Note that these results may change depending on the time period in which median $/sqft is calculated.)
| Median $/sqft Jan 2019 | Median $/sqft Jan 2024 | % Growth over 5 years | |
| Condo | $196.08 | $326.21 | 66.4% |
| SFH | $181.63 | $295.32 | 63.6% |
| Townhome | $174.36 | $256.75 | 47.3% |
However, if we break this down by city, we see that townhomes have demonstrated strong appreciation in Cottonwood Heights, Taylorsville, Holladay, and Millcreek; SFHs in South Salt Lake, West Valley City, and Cottonwood Heights; and condos in Millcreek.
Table 2: Average annual growth rate (median price per square foot)
| City | Type | Annual growth rate |
| Cottonwood Heights | Condo | 10.61 |
| SFH | 11.10 | |
| Townhome | 16.18 | |
| South Salt Lake | Condo | 9.61 |
| SFH | 13.07 | |
| Townhome | 11.21 | |
| West Valley City | Condo | 10.90 |
| SFH | 11.15 | |
| Townhome | 8.57 | |
| Millcreek | Condo | 11.29 |
| SFH | 9.37 | |
| Townhome | 11.79 | |
| Holladay | Condo | 9.30 |
| SFH | 9.48 | |
| Townhome | 12.06 | |
| Taylorsville | Condo | 7.17 |
| SFH | 9.98 | |
| Townhome | 15.25 | |
| Murray | Condo | 9.53 |
| SFH | 8.73 | |
| Townhome | 10.70 | |
| Salt Lake City | Condo | 7.86 |
| SFH | 8.65 | |
| Townhome | 6.81 |
Summary
The Salt Lake City housing market is hot. We see evidence of this in rising prices of all property types, never-ending infrastructure construction, and increasing numbers of huge multi-family apartment complexes. Previously less desirable areas such as South Salt Lake are becoming more and more developed and have the highest potential for appreciation, as do condos and townhomes in more established areas. However, investing in any property type in any area of the Salt Lake metro is a safe bet.
What data do you want to see to make a good sale or purchase decision? Get in touch and let me know!
Katie Kormanik, REALTOR ®
New Place Realty
Disclaimer: The information presented here is for informational purposes only and is not intended to be personal financial advice. Please keep in mind that there is an inherent risk involved with financial decisions. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained here is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.
Kormanik Real Estate 