As the U.S. navigates increasingly uncharted economic waters, states and regions are feeling the impacts to varying degrees across multiple sectors. Real estate, as a fundamental asset and industry, is often a bellwether indicator of overall economic well being. While Utah real estate has not been immune to the economic impacts of 2007 and 2008, this sector has continued to show surprisingly strong overall resilience in comparison to national trends – with particular bright spots in the industrial and retail areas. Buoyed by employment growth and continued interest in Utah by major corporations for regional presence and distribution, Utah’s real estate sector is expected to continue to outperform the national trend – maintaining its multi-year role as one of the brightest economic spots in the region as well as the nation. According to a late 2008 report by economist Jeff Thredgold, “Utah’s economy was the single strongest state economy in the country in the last two years as measured by growth and employment.” Fundamental economic indicators are still strong in the State, particularly compared to national averages. Job growth, which has been extremely strong over the past four years, slowed in 2008 but has remained well above the national average, and unemployment, at 4.6 percent in March 2009, far below the national average of 8.1%. Prior to the nationwide real estate slowdown of 2008 and 2009, Utah was in the midst of significant expansion. Economists in the Utah Governor’s Office of Planning and Budget have predicted that this dynamism will resume with the anticipated market rebound in late 2009. The value of permit authorized SALT LAKE CITY
REAL ESTATE
HIGHLIGHTS Major corporations like Sephora, The Hershey Company and Procter and Gamble have moved into Utah, helping the State’s real estate sector outperform the national trend.
Utah’s overall home price appreciation during the past five years, 42.91%, ranks third among U.S. states.
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UTAH FACTS 2009
The Salt Lake area industrial market demonstrated vibrancy during 2008, with total market vacancy down to 5.6 percent.
There are two major universityaffiliated research parks and well over 100 quality industrial parks in Utah.
