Mountain West Real Estate Investment Market Report: August 2020
Single-family homes in high demand due to COVID-19. Following the Great Recession, the single-family rental (SFR) market experienced solid growth. In fact, the SFR market expanded by more than 3.8 million households between 2006 and 2016. Now, with COVID-19 a part of everyday life, this trend has continued as Americans rethink the kinds of lifestyles they want. With social distancing and stay-at-home orders in place, densely populated areas are losing their appeal to many, creating an uptick in interest for single-family homes.
Why renters prefer single-family homesMarket Activity
The Denver metro housing market appears to be heating up as there has hardly been any impact related to an economic slowdown. There is an increase in demand for housing, tight inventory, and record-low mortgage rates; therefore, home prices are on the rise. Despite COVID-19, this region remains a seller’s market, especially in the $300,000 to $399,000 price range.
Market Activity
The Salt Lake City multifamily market had a late-cycle growth spurt. Despite threats from COVID-19, the Wasatch Front has fared well compared to most U.S. metros. The downtown area remains popular for both investors and developers, and there are several transit-oriented projects underway. The city allowed construction to continue during the statewide stay-at-home order, putting the Salt Lake City International Airport expansion project ahead of schedule.
Market Activity
Due to Dallas/Fort Worth and Austin’s rapid employment growth, corporations had been establishing workforces in Texas prior to COVID-19. Since the pandemic began, the local government’s response to the pandemic has bolstered Texas’ reputation as a business-friendly state. Companies may be more willing to relocate to Texas as they become frustrated with their own states’ policies.
