Two Things You Already Know
I read a lot of real estate news. A lot. Some of the stuff I read is esoteric and may not be applicable to too many people. Other offerings everybody is familiar with but many want to know more about. I’m also kind of a numbers guy.
I’ve always been interested in analytics, returns on investment, rankings and ratings, YOY changes, growth statistics…you get the idea.
So with all that I read and digest, there are two things you already know, even if you haven’t read anything lately: multifamily investors are paying premiums to buy apartments and Salt Lake City is one of the hottest apartment markets in the country.
I’ve attached two links that speak to the information everybody wants to know more about. Each also has ‘growth statistics’ that tend to pique one’s interest.
The first story describes the lengths, price-wise, that many investors are willing to go to in paying for multifamily properties. Multifamily, and Industrial, has been a favored asset class for quite some time beginning when the first Baby Boomers (1946 – 1964) began to retire, say, in 2011. And as the huge Boomer demographic began to roll through in subsequent years the demand for rental housing increased when homes were sold and apartments were rented. And now, many workers are priced out SFR housing forcing them to rent.
As a result, the sales value of multi skyrocketed. Yardi, a real estate data analytics firm, reports that in 2021, the average sales price per unit of apartment properties was $192,105.
Even more staggering, per Yardi, “…Of the 83,000 properties reviewed by Yardi, 4,500 or about 5.30%, sold at least 3 times over the last decade…the average compound annual growth rate for the repeat sale-properties averaged 17.7% nationally.”
Wow. That is stupefying.
The statistics cited in the relative to rent growth over the recent past is equally stupefying.
While not #1 (Sacramento), #3 ain’t too bad.
The Deseret News reported that Salt Lake City, between 2019 and 2022, had the third largest rent growth metric of any major metro in the United States showing a 25.3% increase equating to $291.
Here’s the report the D News referenced: Stressa Report: Where Rents Have Risen the Most
The median rent in Salt Lake City grew from an average of $1,184 to $1,475 in 2022.
Salt Lake Is #3
Did your property realize relative growth at this level? If not, perhaps Svikhart & Associates can assist you with some analytical review to see where your property stacks up against the competition. We can accurately define the competition to make sure your property is minimally at market.
We can review ways by which you can grow rents beyond just competing against your neighbor or the property down the street. Give us a call. We’d love to help. Our first consultation, and often subsequent reviews, are free of charge.
See www.svikhart.com or contact me directly at 801-550-5684.
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