What Makes Park City so Special, and Why Should You Invest in Real Estate Here?
The Utah town is having a serious moment of late, so we’re taking a look at some of the reasons why this small ski resort place is generating this amount of interest.
While the health crisis has raged through the country, the residential real estate market has been resilient, leading to a growing sense of confidence regarding assets in the sector. While commercial properties have dipped due to scarce in-person retail activity and work-from-home policies, the residential market has seen demand either hold up, as it pertains to the rental sector, or even increase, where single family housing is concerned. Park City has also weathered the impact of the crisis better than expected, as its low-density profile has allowed it to stay clear of overwhelming conditions.
With dense cities seeing higher impact from the COVID-19 pandemic, some residents have been redirected from the small, expensive housing options in major metros, and have taken note of opportunities in emerging residential markets. With the latter option also presenting significant investment play potential, it’s places like Park City that are banking on this new-found attention.
So, if all single-family spots are now appealing, why the focus on Park City?
Firstly, you can’t read a “Best Places to Ski” list without Park City being mentioned. Its two world class ski resorts (one being the largest in the country) and Olympic past are at this point ubiquitous in the conversation, but that doesn’t make them weaker as arguments for the area’s enduring appeal. Don’t forget about the Sundance Film Festival, a Park City staple that celebrates innovating and independent filmmakers every year, highlighting the area as a cultural hotspot.
Secondly, Park City’s proximity to the growing technology and finance community brewing in Salt Lake City also leads to wider availability of capital. With the tech sector rapidly moving into a full work-from-home or hybrid paradigm, the appeal of suburban environments near emerging markets is on the up-and-up. This calm mountain-town checks all of these boxes.
Gateway markets have seen intellectual capital flock to more affordable locations, while even those with disposable income have noted the potential for more space for less money by relocating to cheaper markets. That has translated into rent drops in major markets and faster rent growth in secondary and tertiary markets with high upside. Salt Lake City is up on that list, creating a deeper talent pool in the process. That means that more capital is now available in the hotspots of these smaller markets. One of said hotspots? Park City.
How can you capitalize on the Park City momentum?
Growing demand in the market has led to property values continuing their climb, and to a notable drop in inventory. That means opportunities are limited, but their yields are likely higher. Recent data shows that the median home value in Park City has broken the $3.3 million-mark, nearly five times the national value, per Niche.com.
Park City’s solid fundamentals and accelerating demand have created enough of a stir that the investment community has taken notice, so opportunities are now more diverse than before. Of course, that means picking the right play for you has become a little tougher.
While some advise investing in condo properties as an entry-level play in the segment, single-family housing in the right market can provide more value.
Investment play in a growing market
Given the aforementioned dynamic and limited single-family housing inventory, the smartest play is to work with a fully integrated service that offers comprehensive investment solutions. Your best bet as an investor is to contact a service that can handle the entire process and can provide a clear roadmap for your investment.
As a local company that deals directly with developing luxury housing in the emerging Park City market, LUXred is ideally equipped to manage your investment from development to sale. Fully integrated services will provide a clear path from investment to sale, leveraging current market conditions for success.
Looking to get in on Park City’s penchant for luxury real estate opportunities? Contact us today to get more information regarding our investment plans and opportunities in the market.