Utah Multi-Unit Surge: 6+ Month Supply Trends

Ogden 21-unit Listed for $181k/Unit; SLC Duplex Sells for ~8.27% CAP.

Author

David Robinson
August 14, 2024

This week in the Canovo Report…

  • Utah Multi-Unit Surge: 6+ Month Supply Trends

  • Home Depot Issues Warning About Economy

  • Ogden 21-unit Listed for $181k/Unit.

  • SLC Duplex Sells for ~8.27% CAP.

If you find value in our weekly report, please consider forwarding it to a friend! If this is your first time here, you can subscribe here.

Happy Investing,

David Robinson

// NEW MULTI-UNIT LISTINGS

> Our team has analyzed these deals using our custom bulk property analyzer. 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

> 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 for Only $497

With our flat-fee listing service you get full market exposure for your multi-unit property without paying broker fees.

Your property will be listed on the Utah MLS along with the other top property websites including: Zillow.com, UtahRealEstate.com, Realtor.com, Homes.com, Crexi.com and dozens more. We will also present your listing to our 3000+ Utah Investor Network with no additional cost.

*This service is offered exclusively to Canovo Report Subscribers who own multi-unit property.

// UTAH MARKET SNAPSHOT

> Multi-Unit (2+ Units): Total Sold and Price Per Sq Ft

  • The median sold price/sf for multi-unit property is up 6.13% year to date going from $238 last year and $253 this year to date.

  • The total listings sold for multi-unit property is up 18.56% year to date going from 264 last year and currently at 313.

> Multi-Unit (2+ Units): Supply vs Demand

  • As of July 2024 there was 6.23 months of supply for multi-unit property making this a strong buyer’s market.

  • The total multi-unit listings available in July was 268.

> Single Family Homes: Total Sold and Price Per Sq Ft

  • The median sold price/sf for single family homes is up 3.45% year to date going from $224 last year and $232 this year to date.

  • The total listings sold for single family homes is down 1.55% year to date going from 22,112 last year and currently at 22,455.

// INTEREST RATES & FINANCING

> Mortgage Rates as of 8/14/024

// PROPERTY MANAGEMENT

> Property Management Tip: Don’t Neglect Inspections

Every rental contract should include a provision for inspections. We recommend scheduling quarterly inspections for each unit.

Regular inspections allow you to identify and address minor maintenance issues before they escalate into costly repairs. They also help assess the need for capital improvements and upgrades.

Additionally, inspections can help detect contract violations early, such as unauthorized smoking, pets, or uninvited guests.

Get professional property management for only $39/unit. Learn more.

// TOP HEADLINES & INSIGHTS

> Featured Story

Home Depot has issued a warning about the current state of the economy, noting that consumers are spending less on major home renovation projects. The company, closely tied to consumer spending and the housing market, has lowered its sales expectations for the year, citing pressures from higher interest rates and growing economic uncertainty.

Main Points:

  • Reduced Consumer Spending: Home Depot reports that customers are cutting back on home improvement projects, particularly larger ones, due to economic concerns and high interest rates.

  • Sales Decline: The company experienced a 3.6% drop in sales at stores open for at least a year in the last quarter and expects a total year-over-year decline of 3% to 4%, worse than the previously anticipated 1%.

  • Shift in Consumer Behavior: Consumers are increasingly spending on experiences like travel and entertainment rather than physical goods, impacting Home Depot's sales. There is also a noted decline in demand for building materials, lumber, and construction-related equipment.

  • Housing Market Impact: Despite sky-high home prices and strong demand, the housing market is being constrained by high mortgage rates, which have fallen slightly in recent weeks.

  • Long-Term Outlook: Although current trends are challenging, Home Depot’s CEO remains optimistic about the long-term fundamentals supporting home improvement demand.

This situation reflects broader consumer behavior trends and economic conditions, with implications for the housing market and related industries.

> Other News and Reports

Housing Boost: President Biden allocates $100 million in grants to stimulate new housing construction across the U.S., focusing on easing regulations and enhancing local capacity for development. This initiative aims to address the pressing need for more affordable homes and streamline the construction process.

Confidence Dips: Multifamily developer sentiment has declined, as reported by the NAHB's latest survey. High interest rates and regulatory challenges are cited as major hurdles, despite a still-positive outlook on occupancy levels.

Recession Warning: Jamie Dimon, CEO of JPMorgan Chase, maintains a cautious stance, estimating only a 35-40% chance for a soft economic landing and viewing a recession as the most likely outcome. He expresses skepticism about the Federal Reserve's ability to achieve a 2% inflation target amidst significant spending.

Affordability Crisis: Washington County faces unprecedented housing affordability issues, with a typical Utah family needing to spend 5.5 times their annual income on a home—up from 3 times a decade ago. Factors like low mortgage turnover and rising interest rates compound the challenge, making it tough for new buyers to enter the market.

What did you think of today's report?

Login or Subscribe to participate in polls.

David Robinson

Principal Broker/Managing Partner

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

1. Buy The Best Multi-Unit Properties in Utah:
Skip the competition and discover exclusive off-market and top-performing multi-unit properties tailored to your investment goals.

2. List Your Multi-Unit Property for Only $497
List 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.