Utah Multi-unit listings are up 24% YTD

🗞️ Canovo Report: Multi-unit listings are up 24% YTD; Holliday duplex sells for $1.75M; Rent growth expected to improve in 2025 (report)

Author

David Robinson
July 24, 2024

This week in the Canovo Report…

👉  Multi-unit listings are up 24% YTD

👉  Holliday duplex sells for $1.75M

👉  Rent growth expected to improve in 2025 (report)

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Happy Investing,

David

 // NEW MULTI-UNIT LISTINGS THIS WEEK

> Our team has analyzed these deals using our custom bulk property analyzer to estimate the stabilized cap rate. If you’d like more detail regarding any of these listings, click the links below.

Canovo Group may not be the listing brokerage for the above properties. The information provided is not guaranteed and should not be relied upon to make investment decisions. Buyers should complete their own analysis and due diligence before making any investment.

 // SOLD MULTI-UNIT LISTINGS LAST WEEK

> Here's a roundup of multifamily properties sold over the past week. We've estimated their selling cap rates using our bulk analyzer.

List Your Multi-Unit Property for Only $497 

Save on broker fees and streamline your sale with our flat fee listing service. Exclusively offered to Canovo Report Subscribers who own multi-unit property.

 // UTAH MARKET SNAPSHOT

> Utah Multi-Unit (2+ units): SOLD Listings and Price Per Sq Ft

  • The median sold price per sq ft for multi-unit property in Utah is up 9.06% year to date going from $233 to $254.

  • The total number of multi-unit properties sold is up 18.72% year to date going from 235 in YTD 2023 to 279 YTD 2024.

> Utah Multi-Unit (2+ units): NEW Listings and Price Per Sq Ft

  • The median list price per sq ft for new multi-unit listings in Utah is up 1.91% year to date going from $262 to $267.

  • The total number of new multi-unit listings is up 24.68% year to date going from 462 in YTD 2023 to 576 YTD 2024.

> Single Family Median Sold Price by Quarter

Source: wfrmls

 // INTEREST RATES & FINANCING

> Mortgage Rates as of 7/24/2024

Sponsored by: Spencer Allen | Trillion Mortgage NMLS #2296408

 // TOP HEADLINES, REPORTS, & INSIGHTS

Industry leaders strongly oppose President Joe Biden’s recent proposal for national rent control, arguing it could deter investment and worsen the housing supply shortage.

Main takeaways:

  • Critics, including multifamily investors and industry associations, argue that capping rent increases at 5% for large landlords would discourage new construction and investment in the housing market.

  • The proposed rent control measures would apply to landlords with more than 50 units, affecting about half of all rental units in the U.S.

  • Industry leaders advocate for increasing housing supply as the primary solution to high rents, rather than imposing federal rent caps, which they believe could have adverse economic effects.

According to a recent forecast by RealPage, the U.S. rental market is poised for improved performance in 2025, driven by a robust job market and a tightening supply of new apartments.

Main takeaways:

  • The U.S. economy added over 532,000 jobs in the second quarter of 2024, with significant employment gains in major cities like New York, Los Angeles, and Dallas.

  • Apartment completions are expected to decline by 20% in 2025, which could tighten the market and enhance rent growth due to diminished new supply.

  • Rent growth in 2024 has been slower, with half of the top 50 markets experiencing annual increases of 2% to 3%. However, projections for 2025 are more optimistic, with 40% of these markets expected to see rent increases of more than 3%.

Utah homebuyers might experience short-term relief from escalating prices due to a predicted gap between dropping mortgage rates and rising home costs, although this window is expected to be brief.

Main takeaways:

  • Despite a general decrease in home prices from their peak in 2022, Utah's housing market remains above the national average, with the median sales price 23% higher than the U.S. median.

  • Chief Economist at Redfin, Daryl Fairweather, forecasts a fleeting period of affordability as mortgage rates drop before home prices begin to climb again.

  • The ongoing influx of residents to Utah, attracted by its natural beauty and relatively lower prices than neighboring states, continues to drive up housing demand, further straining the limited supply.

I hope you found this weeks report valuable. If you have any questions, feedback, or if I can serve you in any way, don’t hesitate to reach out!

David Robinson

Principal Broker/Managing Partner

> Whenever you’re ready there are a couple of ways I can help you:

1. Buy Off-Market Multifamily Properties:Skip the competition and discover exclusive off-market multifamily properties tailored to your investment goals.

2. List Your Property for Only $497List your multi-unit property on the Utah MLS and dozens of other websites through our brokerage and save thousands with our flat fee MLS listing.

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